With this post, the review of some lending platforms of both the CeFi sphere and the DeFi sphere starts. I'll do a brief rundown on how it works and what are the average annual returns that are offered and if there are any possibilities to reduce interest rates on credit as much as possible.
As the title suggests, we start this week with Celsius Network.
Founded by the well-known Alex Mashinsky, one of the inventors of VoIP (Voice over Internet Protocol) that is the possibility of talking to us through the Internet, not the telephone.
Alex has over 35 patents and has been the birthplace of various successful companies; every week he comes into contact (virtually) with his community through his AMA (Ask Mashinsky Anything, lol) column.
After a brief introduction from its founder and CEO, let's start talking about the platform.
Obviously we are talking about a centralized platform, through which you can borrow funds and earn interest on Crypto deposits. Be aware that in this case we are not talking about staking, but about lending; in fact, the money that we keep in the account gives us the opportunity to access a credit line, but if we do not use our credit line, the platform itself makes it available to anyone who requests it.
This is where the interests that accrue our blocked money come from.
Like everyone else, the project was born through an ico in May 2018, raising 50 million dollars. The name of the token is CEL and the trend of the last period has been amazing: almost 3800% (according to Coinpaprika).
CEL is a utility token that is used by users of the platform to increase profit percentages and decrease the interest payable on the credit line.
Depending on the tokens purchased, there are 4 different brackets:
- Bronze level
From 5% to 10% of CEL tokens owned
5% bonus on active income
5% discount on interest expense
- Silver level
From 10% to 15% of CEL tokens owned
10% bonus on interest income
10% discount on passive ones
- Gold level
From 15% to 20% of CEL Tokens owned
20% bonus on interest income
20% discount on interest expense
- Platinum level
From 20% to 100% of CEL Tokens owned
30% bonus on interest income
30% bonus on interest expense
When you open the page by scrolling to pass the titles in large letters, you will find the APYs updated for that week; clicking on the view all rates button, you are directed to the page of all the currencies that are traded with the various returns.
Logically, the percentages provided by the Synthetics network (SNX) will immediately catch your eye. Actually they are high and verifiable annuities, I personally have deposited a part of the capital in snx directly through their platform, so without relying on centralized bodies, and I must say that it was very satisfactory, but given the risks that can be run I decided to liquidate the position and exit by moving the capital in a form that, although less profitable, is still safer.
It is worth noting that the APYs are calculated on an annual basis using the compound interest method.
Comparing Celsius to various other platforms the returns are among the highest.
Inside the platform there is a calculator that allows you to see immediately how much the amount we make available for the investment could make. To obtain a loan of $ 500 proportionally, $ 2000 of underlying is required. Obviously, the refund is on an annual basis and the interest is around 1%, which depending on the category to which it belongs, can be lowered to 0.7% (in the case of Platinum we have a 30% discount on interest expense).
Basically, for a loan of $ 500 I would pay $ 3.50 in interest ... That's not exactly what banks offer!
look this image!
The platform is also equipped with some applications that facilitate some movements; first of all CelPay which is a payment solution and allows community users to exchange cryptocurrencies without the need to remember the public key and above all there are no network fees.
What other platform are you eager to use or learn? Comment here and I will evaluate an article about it
