Why are they taking loans to earn more? Why are

Question

Celsius Community

CAKE 🥞

Why are they taking loans to earn more? Why are

they not using customer deposits? They are putting the platform at risk by doing this aren't they?

0

23.10.2021

2 ответов

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CAKE 🥞 Автор вопроса

Kristian
Think about it. Celsius lends out primarily stable...

This makes much more sense now, thank you! I'll keep my money on Celsius thanks to you. 👍

0

23.10.2021

Kristian · Accepted Answer

Kristian

Think about it. Celsius lends out primarily stablecoins, because that is what borrowers want. Meanwhile Celsius users deposit BTC, ETH and other crypto to earn interest. Celsius needs more stablecoins to lend out, but obviously can’t just sell BTC and ETH deposited by users. So instead they use user deposits as collateral to borrow stablecoins which they can then lend out.

0

23.10.2021

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