Celsius Fly Wheel

Celsius was able to create a closed system called the ‘Celsius Fly Wheel’ that works to stabilize the CEL token, create utility and a way to give back through interest rewards and discounts on loan interest.

CEL is the native token for the Celsius platform. Since Celsius’ mandate is to ‘give back to the community’, there are no external stakeholders or shareholders to pay. Therefore, the closed-loop Celsius Fly Wheel system creates extra value, greater returns and a more stable environment for the CeFi platform.

The Celsius Fly Wheel works like this (no particular order as it is a closed loop and goes round and round):
  1. Buy CEL Tokens on Open Markets (CEX, DEX, in-app, OTC)
  2. Distribute to Celsius Members
  3. User Balances Increase in their Celsius Wallets
  4. Celsius Issues Crypto Loans
  5. Collect Interest on Crypto Loans
  6. Distribute to Celsius Members
  7. Lend Coins and Crypto Assets
  8. Collect Interest in Coins and other Crypto Assets

* Please note that US users are unable to earn in-CEL. However, accredited US users may be able to earn in-CEL by the end of 2021.

Celsius Weekly CEL Token Burn

As announced on October 1st, 2021, Celsius Network will do a weekly CEL Token burn which will put upwards pressure on CEL prices. CEL Tokens will be burned each week. This makes CEL a deflationary token. Combine that with upwards buying pressure from an increasing number of users option to earn in-CEL, this deflationary aspect is a welcome addition to the Celsius Fly Wheel.

Exactly 52,682 CEL tokens will be burned on October 1st, 2021 which represents the first weekly CEL token burn ever.

“Every week, we will be burning a certain amount of CEL tokens that corresponds to 10% of the total that we earn that week.” – Alex Mashinsky

“That’s a new ritual we’re doing Fridays. So Mondays we pay you yield, Fridays we burn some CEL tokens. That’s pretty good. Double double.” – Alex Mashinky

This is an additional 10% on top of what is already paid in rewards. And these burned CEL tokens will be purchased off the open market (and will not come from the Treasury). This further spins the Celsius Fly Wheel even faster.