The Celsius cryptocurrency lending platform announced that it will implement compound interest in the cryptocurrencies deposited in its wallet, effective February 1. The announcement came with a number of other updates on a Twitter AMA (ask me anything) with founder Alex Mashinsky on January 22.
Compound interest was a feature requested by the Celsius community and aligns the community-driven application with competitors backed by venture capital such as BlockFi, and traditional financial services. In the announcement sent to Cointelegraph the firm declared:
“You asked for it and we fulfilled it! As of February 1, interest income from crypto deposits will be officially COMPOSED! That’s right: all the coins in your wallet will now be earning interest on interest! ”
Other changes announced at the AMA covered the renewal of loyalty levels, the ability to lend against EOS tokens and a partnership with the crypto exchange Korbit, from South Korea.
- The annual US deficit will be at least 6 times higher than the Bitcoin market
Users can also now earn up to 8.1% APR on their first Bitcoin deposit ( BTC ).
The fastest-growing crypto loan company
As Cointelegraph reported in August 2019, Celsius Network became the fastest growing crypto loan company, with USD 2.2 billion in the origination of currency loans. By November, the total loan amount had almost doubled again, reaching USD 4.25 billion.
● The rise in Bitcoin prices falters as the bulls struggle to keep the USD 8,300 increase
Crypto loan platforms continue to grow in popularity, allowing holders to earn interest on their deposited assets while allowing the use of tokens as collateral for cash or stable coin loans.
Celsius offers variable interest rates on deposits from a wide range of popular cryptocurrencies, including Bitcoin, Ether ( ETH ) and Litecoin ( LTC ), along with currencies such as Bitcoin Gold (BTG), Dash ( DASH ), ZCash ( ZEC ) and EOS. Higher interest rates of up to 10% are also available in a selection of stablecoins.