Recently, Celsius Network reported its recent partnership with TrustToken to add support to four new stablecoins on the platform.
To enter the financial space successfully, it is imperative to understand that the loan of money is always a risky business, so if we add to that the fact that money is lent against assets that are chronically risky as well (such as cryptocurrencies) it raises a little more tension.
Several companies have used multiple efforts to minimize that risk in the crypto market and one could say that Celsius Network has been one of them, now paying up to 10 APRs in 10 different stablecoins, including True Great Britain Pound (TGBP), True Australian Dollar (TAUD), True Canadian Dollar (TCAD), True Hong Kong Dollar (THKD), PAX of Paxo, DAI of MakerDAO, USDC of Coinbase, GUSD of Gemini and USDT of Tether.
According to what, the company informed, its high rates are justified in that they constantly obtain higher returns from their deposits and distribute 80 percent of their income to their depositors.
According to Crowdfund Insider, the company explained:
“In addition to earning interest on stable currency deposits, users can deposit cryptocurrencies and earn interest or use their cryptocurrencies as collateral to request a loan issued in any of their stable currencies admitted for only 3.46% APR”
On the other hand, other advantages that Celsius represents is that, according to its website, customers do not require a minimum deposit, claiming that anyone can earn interest with $ 5 or $ 5,000,000.
During an interview with the Decrypt newspaper, the company’s CEO Alex Mashinsky said:
“To date, we have not had any problems with these types of loans. We have a very rigorous risk assessment protocol when deciding who to lend and in what agreement. ”