On Thursday, Celsius Network announced that it would be offering CEL token holders compound interest. The crypto lending and borrowing platform indicated that CEL token holders would earn interest at 3% rate per year.
The announcement indicated that US customers would get automatic enrolment into the weekly compounding interest program. Non-US Celsius users will have the alternative of opting for the newly launched program or continue taking advantage of the current international offering. Currently, Celsius users outside the US can earn up to 30% additional interest on non-Celsius deposits. The holders receive interest in CEL tokens every week.
Funding of the interest on CEL tokens is from Celsius’ token treasury. The company maintains the treasury with the spread received from issued loans. The firm offers dollar loans through the conversion of CEL into USD and generates its revenue from loan interest payments. Similar to all the digital coins on the platform, Celsius also gives 80% of its income to CEL depositors.
Celsius Network CEO and founder, Alex Mashinksy stated that they ensure that customers get a share of all benefits possible. He added that at the same time, they have to make sure everything happens in the right way. He added that the recent reintroduction of CEL tokens to US users is an indication of Celsius’ commitment to the community. Mashinsky said that they want to ensure customers receive a seamless experience and hopefully a lucrative one.
Established in 2017, the platform has been offering decentralized lending to customers. It allows customers of stable coin issuers, wallets, and exchanges to receive up to 10% interest on their tokens. Equally, it allows customers to gain access to services such as using digital tokens as security to receive fiat loans. It is also possible to deposit cryptocurrencies into the Celsius wallet.
Around 30% of users already have opted to earn weekly interest on their tokens. More than 90% of CEL holders have either maintained or grown their token balance without withdrawing. The company has so far shared more than 5 million CEL tokens to its community of depositors to date. Celsius Network has over 10,000 depositors with a total of more than $350 million worth of cryptocurrency.
At the beginning of August, the company partnered with Bitcoin.com to integrate its crypto trading platform. This will enable its customers to purchase BTC, BCH, and ETH, among other supported digital assets.