Celsius Network, a cryptocurrency lending and borrowing platform, announced on Thursday the introduction of compounding interest for crypto holders on its site. According to Celsius Network, members will be able to earn weekly compounded interest on CEL tokens at a rate of 3% per annum.
Celsius Network also reported that U.S.customers will be automatically enrolled in weekly compounding interest on CEL tokens while Celsius users located outside the U.S. have the option to earn interest on CEL tokens or continue to take advantage of Celsius’s current international offering and earning up to 30% more interest income on non-CEL deposits paid out weekly in CEL tokens.
“Interest on CEL tokens is funded by Celsius’s token treasury. Celsius issues dollar loans by converting CEL into USD and generates revenue through loan interest payments. As with all other coins supported on the platform, Celsius distributes up to 80% of this income back to its community of CEL depositors.”
While sharing more details, Alex Mashinksy, CEO and Founder of Celsius Network, stated:
“Our community comes first. We want to make sure that everyone using Celsius is getting the full suite of benefits possible, but we also have to make sure that we are doing it in the right way. Our recent pause and reintroduction of the CEL token to US users shows our dedication to the community, and making sure they have a seamless experience…and hopefully a profitable one!”
Celsius Network then added that its community’s successes below.
- Nearly 30% of all Celsians already choose to earn weekly interest in CEL
- Over 93% of CEL token holders have grown or maintained their CEL balance without withdrawing
- The platform distributed over 5 million CEL tokens to date to its community of depositors earning in CEL
- 10,000+ depositors entrusting Celsius with over $350 million worth of coins