- The Celsius Network is a centralized entry point into the crypto realm. It had already secured a whopping $864 million in venture financing and was on the verge of dominating the crypto sphere.
- In order to provide low-rate borrowing to clients, Celsius acquires leverage using permissionless on-chain money exchanges such as MakerDAO.
- Celsius appears to have exploited stETH, an ETH derivative, to boost its ETH yield and entice additional investors.
Celsius Network had put a halt to transactions in order to maintain viability and protect the native token.
The ‘pause’ of withdrawals, on the other hand, drew its own set of questions, with investors alleging that the system had shifted its liquidity to the FTX market two hours before announcing the pause.
Continue reading to discover more about the claims leveled against the senior management of Celsius Network:
The Celsius Network is a centralized entry point into the crypto realm. It had already secured a whopping $864 million in venture financing and was on the verge of dominating the crypto sphere.
The network has managed to capture about $3 billion in cryptocurrency for its 1.7 million and growing member base.
Simply said, Celsius is a financial platform that promises to give users with simple and safe crypto services.
It allowed users to trade cryptocurrencies, as well as make high-yield deposits with their stablecoins and cryptos, and lend with their cryptos.
In order to provide low-rate borrowing to clients, Celsius acquires leverage using permissionless on-chain money exchanges such as MakerDAO.
Receiving user deposits in assets like $WBTC and placing them into a fund to borrow $DAI is what this implies.
- In order to provide low-rate borrowing to clients, Celsius gains leverage using permissionless on-chain money exchanges such as MakerDAO.
Receiving user deposits in assets like $WBTC and placing them into a fund to borrow $DAI is what this implies.
- On $ETH, Celsius generated strong gains.
Staking ETH on Ethereum’s proof-of-stake beacon chain returns 4.2 percent, whereas $ETH yields 0.20 percent on the Bitcoin network.
So, how did Celsius come up with 8%?
Celsius appears to have exploited stETH, an ETH derivative, to boost its ETH yield and entice additional investors.
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Source: https://www.thecoinrepublic.com/2022/06/18/the-falling-celsius-network/