Celsius Network, the parent company behind the cryptocurrency Celsius (CEL), revealed plans of offering compound interest to token holders. The platform also revealed that users would earn interest at a rate of 3 percent per annum. The interest is compound, and hence, users receive their shares every week.
The company has automatically shifted all US users to the new program while non-US users have the option of choosing between the previous program and this one. The previous program allowed users to earn up to thirty percent interest in non-Celsius deposits. The interest is rewarded through CEL tokens.
The program is funded by CEL tokens owned by the Celsius Network. The company maintains its token treasury through the loans it has issued. The company issues loans in dollars by converting the CEL into USD and then uses the generated revenue to reward users. In fact, the company shares four-fifth of its income with CEL depositors.
According to the company’s CEO Alex Mashinksy, the company wants to share all profits with their customers. However, he noted that there are things that are needed to be maintained, and the company needs to ensure that things go their way.
He then addressed recent changes by stating that the recent reintroduction of CEL tokens in the United States is to show their dedication to the customers. He wanted users to enjoy access to an efficient system while making their experience profitable.
What is Celsius?
Celsius was established in 2017 and had been offering decentralized lending to clients. It rewards interest of up to 10 percent to holders of stable coins and exchange users. Moreover, it allows people to use digital assets as security to borrow loans in fiat currencies.
At press time, more than thirty percent of users have chosen the weekly interest program. Celsius is constantly growing and has more than ten thousand depositors and hold more than three hundred and fifty million dollars ($350M) worth of cryptocurrencies.