Renowned cryptocurrency lending company Celsius Network is facing a serious financial crisis due to the current crypto market downturn. It lends deposits to customers and earns some interest in return. It manages over $11.8 billion in crypto-assets and offers its clients a yield equivalent to 18.63% of crypto deposits
The Celsius financial crisis hit the headlines after the crypto lender indefinitely halted withdrawals, swaps and internal transfers shortly after the Terra LUNA debacle, which set the crypto market on a free fall. Shortly after stopping the evacuation, Celsius again hired restructuring lawyers as it tried to keep afloat.
As events continued to unfold and bankruptcy fears mounted, MakerDAO voted to temporarily disable DAI’s direct deposit module (D3M) for DeFi lending platform Ava. The move was intended to reduce the exposure of Celsius to DAI, which it had already borrowed through the Av platform. Celsius borrowed 100 million DAI tokens on Aave.
However, on July 6, Celsius paid Maker $183 million in DAI tokens in an attempt to pay off its debt. It paid off 59 million DAI tokens, which means it remains with a debt of 41 million DAI tokens. The move frees up some of the wrapped bitcoin that was used as collateral for the loan.
But in a shocking change of events, crisis-ridden crypto lender Celsius was sued on Thursday (July 7) by its former investment manager for allegedly using customer deposits to manipulate the price of its native token, CEL. while failing to hedge the risks properly. , Something that led to the freezing of the assets of the clients.
Due to the woes facing the Celsius network, it may be necessary to look for an alternative platform that provides similar or better services. CoinJournal has compared five options for you with Celsius Network. The list compares features, pricing, ratings, and products offered.
Celsius Network Alternatives
1. Nexo
Nexo was the first crypto lending platform to offer instant crypto-backed loans. In addition to allowing customers to borrow, the crypto lender also allows crypto investors to access their digital assets and provide them as collateral for a crypto credit line.
It allows users to buy cryptocurrencies instantly using the card at 0% fees and allows users to spend with a 0.5% cashback strategy. It allows users to swap cryptocurrencies and earn up to an APY of 16% for providing their crypto assets.
Most importantly, Nexo has been stable regardless of market conditions and has recently been in talks with Citigroup for strategic opportunities in crypto lending.
2. Cakedefy
CakeDefi is a Singapore-based betting, liquidity pool and lending protocol that allows users to deposit their crypto assets and earn a percentage yield.
Despite its ‘DeFi’ tag, Cake DeFi is a centralized platform because it is a custodial platform that provides a suite of DeFi products.
CakeDeFi offers three primary DeFi products, namely lending, staking and liquidity mining. Users can earn an average of 6.5% for lending their crypto assets or up to 80% for participating in liquidity mining.
3. Compound Finance
Compound Finance is a San Francisco, California-based mechanical money market protocol that allows users to deposit crypto assets and earn interest up to 16% APY or borrow other crypto assets against the assets they have deposited. It was established in 2018 and was one of the first crypto lending platforms to be developed.
Compound users can also buy, sell or swap cryptocurrencies.
Compound started out as a centralized platform but has grown out of its image following the issuance of its native governance token, COMP, transforming Compound into a community-governed decentralized autonomous organization (DAO).
4. come
Aave is well known crypto-based lending and lending platform. It was launched in 2017.
Aave is a non-custodial DeFi protocol, and it offers three main products, namely lending, lending, and liquidity mining (for liquidity providers that provide liquidity to lending pools).
Aave has some of the largest lending pools in the blockchain industry and has become a common name for crypto experts.
In addition to offering high-collateralized crypto loans, ave users can also obtain non-collateralized loans called flash loans.
5. crypto.com
Crypto.com offers a range of crypto services which include crypto.com apps, exchanges, Visa cards, DeFi swaps, DeFi wallets, DeFi earns, crypto.com prices, staking and crypto lending, among others.
In addition to the wide variety of services, Crypto.com also offers some of the lowest transaction fees and incredibly generous rewards programs within the crypto industry.
conclusion
With the above alternatives to Celsius, you have a selection of reputable platforms offering crypto services similar or better to Celius Network, which is currently undergoing some difficulties.
The above list, however, is but a fraction of the crypto protocols that offer services similar to those provided by Celsius.