Celsius Network, a well-known crypto lending company, is currently facing a severe financial crisis due to the crypto market crash. It lends money to customers and earns interest in return. It holds over $11.8 million in crypto-assets, and offers its customers percentage yields of up to 18.63%.
The crypto lender placed an indefinite freeze on withdrawals, swaps, internal transfers and other transactions shortly after Terra LUNA, which caused a market crash, put the Celsius financial crisis under the spotlight. Celsius soon hired restructuring attorneys to try and keep it afloat, shortly after suspending withdrawals.
MakerDAO elected to temporarily remove the Direct Deposit Module D3M of DAI from DeFi lending platform Aave. As events unfolded quickly, and concerns about insolvency grew, The move was aimed at reducing Celsius’ exposure to the DAI, which it had already borrowed through the Aave platform. Celsius had previously borrowed 100 million DAI tokens from Aave.
However, Celsius will be at its lowest point on July 6. paid $183 million to Maker in DAI tokensIt attempted to get rid of its debt. It paid 59 million DAI coins, which means it still owes 41 million DAI coins. It has released some of the bitcoin wraps that were used as collateral to the debt.
But in a shocker turnaround of events, the embattled crypto lender Celsius, was then on Thursday (July 7) sued by its former investment manager for allegedly using customer deposits to rig the price of its native token, CEL, while failing to properly hedge risks; something that led to the freezing of customers’ assets.
Due to the problems facing Celsius Network, you may need to search for an alternative platform offering similar or better services. Coinjournal has compared five options to Celsius Network. This list compares pricing, ratings, and the products available.
Alternatives to Celsius Network
Nexo was the first platform to offer instant crypto-backed loans. Customers can borrow from the crypto lender, but crypto investors can also use their digital assets as collateral to get a crypto credit.
It allows users instantly to buy cryptocurrencies with their cards at 0% fee and a 0.5% cashback strategy, which allows them to earn while they spend. It allows users to also exchange cryptocurrencies. earn up to an APY of 16%For providing their crypto assets.
Most important, Nexo has been steady regardless of market conditions. It recently met with Citigroup to discuss strategic opportunities in crypto lending.
CakeDefi, a Singapore-based liquidity pool and staking protocol, allows users to deposit crypto assets and earn a percentage return.
Despite its ‘DeFi’ tag, Cake DeFi is more of a centralized platform since it is a custodial platform that offers a suite of DeFi products.
CakeDeFi offers three major DeFi products, namely lending and staking. Liquidity Mining. For lending crypto assets, users can earn up to 6.5% and 80% respectively.
3. Compound Finance
Compound Finance, a San Francisco-based mechanical money market protocol, allows users to deposit cryptocurrency assets and earn interest up to 16% APR. Users can also borrow crypto assets against their assets. It was created in 2018 and was one of the first crypto lending platforms.
Also, compound users can buy, sell or both Swap cryptocurrencies.
Compound was initially a centralized platform. However, it has evolved from its initial image to become a community-governed autonomous organization (DAO) after COMP was issued.
Aave is a well-known crypto-based lending platform and borrowing platform. It was founded in 2017.
Aave, a non-custodial DeFi protocol offers three main products: borrowing, lending and Liquidity Mining (for liquidity providers that provide liquidity to the lending pool pools).
Aave is a well-known name among crypto experts because it has one of the largest lending programs in the blockchain industry.
Aave users are able to obtain uncollateralized loans. Flash Loans.
Crrypto.com provides a range crypto services such as a Crypto.com App and Exchange, Visa Card. DeFi Swap, DeFi Wallet. DeFi Earn. Crypto.com Price, staking and crypto lending are just a few of the many services offered by Crrypto.com.
Crypto.com has a large selection of services. They also offer some of the lowest transaction costs and generous rewards programs in crypto.
You have many options to Celsius. There are many reputable platforms that offer crypto services similar or better than the Celcius Network.
However, this is just a partial list of crypto protocols available that provide similar services as Celsius.