Celsius Network Interest Rates, Explained

Hint: There’s no magic formula to the Celsius business model.

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How can Celsius Network pay 7.1% interest?

The answer is very simple — banks could also pay you 3–10%, they just don’t want to, and if we’ve learned anything in the last hundred years, it’s that they certainly don’t have to pay you above 1% because we’re giving them our hard-earned cash for almost nothing in return. Banks have gotten away with lowering the payout rate as they merged with other banks reducing competition and paying depositors the bare minimum in interest while keeping most of the profits for themselves.

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Most banks typically have between 14–25% return on their capital, so by paying customers 1% in interest, they’re keeping over 80% of the profits and distributing these earnings to their shareholders, usually in the form of dividends and share buyback.

The Celsius business model is structured to do the exact opposite of what banks do — by giving 80% of total revenue back to our community each week in the form of earned interest. We earn profits by lending coins to hedge funds, exchanges, and institutional traders, and by issuing asset-backed loans at an average of 9% interest. We’re taking the exact same 80% profit margin that banks have kept for themselves for centuries and returning it to our community of depositors.

How do I know that Celsius borrowers will pay back their loans?

What collateral do you accept? Where is it stored?

So, why is Celsius giving 80% of its profits away? Don’t you want to make money?

In fact, most small businesses run on 20% margins — not 80%. It’s about time we stopped this easy-money the banks make on Wall Street. We did this to the phone companies (Think WhatsApp vs AT&T) and now we will do it to banks.

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How are interest rates calculated, and why do different coins have different rates?

How often are rates likely to change?

About Celsius Network

Download the Celsius Network app and start earning interest on your crypto today ➡️ celsiusnetwork.app.link

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