How To Choose Between In-Kind vs In-CEL Rewards
Allowing users to choose between earning weekly rewards in-kind or in-CEL gives them the ultimate flexibility in determining value, risk tolerance, APY rates and type of rewards.
Celsius users have the ability to choose between 2 reward types: in-kind or in-CEL. In-kind rewards are paid out in the same asset type while in-CEL rewards are paid out in CEL tokens. Both are great, but each has its advantages.
In addition, Celsius Network users can change their preference (in-kind to in-CEL or vice versa) at any time. The change will be in effect for the next accrual period.
Please note that accredited US users may have the option to earn in-CEL starting September 2021.
Why choose Celsius in-kind rewards?
When you’re earning in-kind through Celsius, your weekly reward payments are in the same asset type as your original asset earning the interest. For example, if you have Bitcoin (BTC) in your Celsius wallet and choose to earn in-kind, your rewards will be paid out in Bitcoin (BTC) as well. Here are some advantages of earning in-kind:
- In-kind rewards for stablecoins are like earning USD (since stablecoins are ‘pegged’ to the USD). Essentially, it gives you guaranteed interest in USD, that don’t fluctuate in value like other crypto assets.
- In-kind rewards for crypto (like BTC and ETH) will increase your stack for your preferred assets that you believe will outperform other crypto assets or even stablecoin value over time.
Why choose Celsius in-CEL rewards?
For users who are eligible to invest and earn in-CEL, your weekly reward payments are paid out in CEL tokens, rather than in-kind. For example, if you have Bitcoin (BTC) in your Celsius wallet and choose to earn in-CEL, your rewards will be paid out in Celsius (CEL). Here are some advantages of earning in-CEL:
- Celsius users can increase their CEL stack much faster with compounding interest and higher reward rates when earning in-CEL
- Earning in-CEL will assist users in maintaining their CEL Ratio, which determines Celsius Loyalty Levels, and therefore perks
- Celsius users can invest in a ground-level opportunity at a currently under-appreciated CEL token price with lots of upside as Celsius Network grows
- Earn up to 25% more APY by choosing to earn in-CEL, depending on your Celsius Loyalty Level
- Platinum Loyalty users get 25% higher APY by earning in-CEL
- Gold Loyalty users get 15% higher APY by earning in-CEL
- Silver Loyalty users get 10% higher APY by earning in-CEL
- Bronze Loyalty users get 5% higher APY by earning in-CEL
- No Loyalty users get the same APY as earning in-kind
- Borrow against your crypto and get up to 25% loan interest discounts if you choose to pay your interest using CEL. The amount of discounts depends on your Celsius Loyalty Level. Therefore, earning in-CEL will give you more CEL, which improves your Loyalty Tier, giving you greater discounts as follows.
- Platinum Loyalty users get a discount of 25%
- Gold Loyalty users get a discount of 15%
- Silver Loyalty users get a discount of 10%
- Bronze Loyalty users get a discount of 5%
- No Loyalty users get the same borrowing base rates