Celsius to Offer Compound Interest on Cryptocurrency Deposits
Celsius, platform for lending and borrowing crypto, stated that it would start providing compound interest on cryptos deposited in its wallet. The company has issued few more updates via a tweet AMA (Ask Me Anything) session with founder Alex Mashinsky.
Compounding feature was introduced on the basis of a request made by Celsius community and draws the community-led app in accordance with venture capital backed contestants such as BlockFi and conventional financial facilities. In this regard, Celsius said:
“You asked for it, and we delivered! Starting February 1, interest income on crypto deposits will officially be COMPOUNDING! That’s right – all the coins in your wallet will now be earning interest on interest!”
Other amendments stated in the AMA encompassed overhauled loyalty levels, the capability to offer credit against EOS tokens, and collaboration with South Korean cryptocurrency exchange Korbit.
Users can also receive up to 8.1% APR on their first deposit of Bitcoin (BTC). Celsius Network turned out to be the quickest growing cryptocurrency lender with $2.20 billion as loan amount credited against crypto.
— Celsius Network (@CelsiusNetwork) January 22, 2020
By November, the overall loan amount had nearly doubled, hitting $4.25 billion.
Platforms that lend against cryptocurrencies are growing in popularity, enabling holders a possibility to receive interest on their deposited cryptos, while also facilitating the usage of tokens as pledge against fiat money or stablecoin advances.
Celsius provides various interest rates on deposits of a broad range of popular cryptos, including Ether (ETH), Bitcoin (BTC) and Litecoin (LTC), in addition to coins such as Bitcoin Gold (BTG), ZCash (ZEC), Dash (DASH), and EOS. Higher interest rates to the tune of 10% are also offered on chosen stablecoins.