The World Needs Banking But It Doesn't Need Banks

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Written by

Im SomeOne That YouMissed

4 years ago

In community: Earn Money(a25b)

As my first article here am introducing you the industry-leading cryptocurrency interest-earning platform as if in theory banks are a good idea.

[Introducing You The Celsius Network]

Celsius Network Features:

Celsius Network supports: Bitcoin, Ethereum, Litecoin, Ripple, OmiseGO, Bitcoin Cash, Ox, Stellar, DASH, TrueUSD, Gemini Dollar, Multi-Collateral DAI, Paxos, USD Coin, Tether, True Great Britain Pound, True Australian Dollar, True Canadian Dollar, True Hong Kong Dollar, EOS, Saga, Ethereum Classic, Tether Gold, Bitcoin SV, Basic Attention Token, and Binance USD.

Buy, Earn & Borrow on the Blockchain :

Celsius Network lets you buy coins, earn interest on your crypto and instantly borrow dollars at 1% APR against it. No fees ever.
1% Cash Loans :

Take advantage of the lowest loan rates in the industry! Use your crypto as collateral to borrow dollars and stable coins at the lowest rates starting at 0.70%*.
Earn Crypto :

Celsius Network shares at least 80% of its revenues with the Celsius community in the form of weekly interest payments. All users earn up to 10%*.
CelPay :

Instantly send Bitcoin and other cryptocurrencies like never before – no wallet required

Celsius Network was founded on the belief that we can do well after we do good for our community and promote the existence of CEL. Users pay the lowest interest on loans while feeling good that up to 80% of Celsius’ revenues are shared with our depositors, not our shareholders.

The ultimate goal of Celsius is to bring 100,000,000 people into crypto , since that kind of adoption is what we need for the whole decentralization movement to succeed.

As Introducing you the Celsius Network. Then I will explain it how it works and how its done.

To describe the flow design of the Celsius platform, we need to know how the three core currencies[Celsius Degree Token, Crypto-assets like BTC, and Stablecoin/FIAT] are used between the various elements of the system. The secret key of Celsius Network to maintain there are: lenders (crypto holders), borrowers (Traders), Celsius (Platform Services), and external coin exchange markets.

An ordered chain of events in the Celsius platform will look like this:

The lenders transfer their ETH to Celsius management. The combined ETH available to Celsius is considered as a crypto lending reserve pool. Celsius then deposits such ETH with a custodian.
A trader (borrower) deposits FIAT into their Celsius account managed by a custodian. This account is the base capital for all trades and risk reserves.
A trader (borrower) seeks to short ETH, and makes a request by placing a limit sell order. The request includes time and price limits, as well as a minimum (base) fee and a bid for added fee they are willing to pay to get preferred access to crypto assets. If a trade gets prolonged, additional fees may be charged.
During the trade setup, Celsius checks if there is an adequate amount of ETH from lenders to perform the order. If not, the amount available will be indicated.
If fees and other parameters are matched and approved by Celsius, the platform locks the quoted margin loss amount in the Celsius dollar escrow account with the custodian.
Celsius also collects a fee as a percentage of the dollar value of the order translated to CEL, according to the current CEL token market value. The percentage is decided using an algorithm that takes into account the volatility of the coin, trading volume, amount being shorted and current market conditions.
If the sell limit order can be executed, the borrowed ETH is sold on one or more exchanges and is turned into FIAT and held at a custodian.
The ETH amount is repurchased from the exchanges when time limit is met, a margin call is made, or when the trader sends a buy to cover their order.
The borrowed amount of ETH is returned to the Celsius lending pool.
Any gains due to a drop in the ETH price, plus the held escrow, are released back to the trader. In case the ETH value went up, the losses will be deducted from the account and the remainder, if any, will be released to the trader account.
Each day the system will allocate CEL tokens for distribution to lenders. The total CEL allocated is based on parameters such as expired trades minus Celsius fees, trade and other exchange fees, over-time distribution, and surplus management. The distribution algorithm accounts for amount and lending-age, similar to proof-of stake (PoS) mining.
The deposited, unlocked, ETH is available to be withdrawn upon request to lenders external wallet at any time. If they wish to pull ETH from the pool, lenders will lose seniority rights and be pushed to the end of the waiting list (lending-age will be reset to 0) when CEL are rewarded, thus reducing their future daily earnings.
The lender may wish to margin-loan FIAT using the managed crypto assets as collateral. The Celsius algorithms will inform on the maximum loan amount, interest and fees, and the payments plan. These will be calculated based on parameters such as: the current managed assets value, market status analysis, calculated costs and more. The FIAT loan may arrive to the user either as a debit card or a direct bank transfer
The lender will be notified when a payment is due. Payments will be made via a bank transfer/wire or other fiat payment methods. Celsius will remind and alert the user when a payment is due, giving ample time to respond. However if late, payments may carry penalties such as added interest or assets liquidation.
In the event that payments are delinquent, Celsius may liquidate held assets to cover costs.
If the market value of the assets held is nearing the value of the unpaid sum, the system will trigger a margin call in the form of alerts. The user may elect to cover the remainder of the loan or add more coins to the account.
In case a margin-call was not properly answered, Celsius may liquidate the assets to cover costs.

CEL is a utility token that provides its holders access to higher interest rates on the coins they hold, and lower interest rates on the loans they take. Celsius users are incentivized to buy and HODL CEL ,since the loyalty program works in tiers.

Celsius Network loyalty program: