Celsius to Implement Compounding Interest on Cryptocurrencies Deposited in Its Wallet
Borrowing and crypto lending platform Celsius's Founder, Alex Mashinsky announced, that starting February 1st, they will begin applying compound interest for their customer's wallets.
— Celsius Network (@CelsiusNetwork) January 22, 2020
The news came in a Twitter AMA (Ask Me Anything), with some other updates also mentioned. It seems the Celsius community had asked for the compounding interest. By implementing it, Celsius will compete with BlockFi and other traditional financial services. This is what the firm said in a recent announcement that was sent to Cointelegraph:
“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!”
As said before, the AMA announced many other updates like the ability for lending against EOS tokens, revamped loyalty tiers and collaboration with Korbit, the South Korea-based crypto exchange. Also, users have been told they can now earn as much as 8.1% APR if they deposit their first Bitcoin (BTC).
Celsius Developed Faster than Other Crypto Lenders
The Celsius Network has developed into the fastest, when compared with other crypto lenders, having a little over two billion in coin loans in their beginning, only to double this sum to $4.25 billion by November 2019. Platforms for crypto lending are continuing to be more and more popular because they allowed customers an opportunity to receive interest for deposited assets, not to mention they enable tokens to be used as collateral against stablecoin and cash loans.
The interest rates offered by Celsius on deposits are for many cryptocurrencies like Bitcoin (BTC), Litecoin (LTC), Ether (ETH), Dash (DASH), Bitcoin Gold (BTG), EOS, and ZCash (ZEC), not to mention they also have higher interest rates for a few of their stablecoins.