Thread by @WesleyBKress

1/14 The number one thing I continue to discuss with Celsius $CEL is how every intelligent individual, especially BIG money will eventually deposit in Celsius to earn yield. Why? Not because you can’t get yield elsewhere that isn’t novel. That’s possible anywhere, right? So why?

2/14
BUT.. hold up. Hear me out.

We all want to make money but we also have lives to attend right @trillions_media (Essentials, Travel, Living expenses, Healthcare, etc) but without selling our assets or foregoing appreciation we all see coming in the next 5-10 yrs $CEL ©🤔💭

3/14 With Celsius $CEL since their business model isn’t based on Net Interest Margin & pay 80% Revenue to depositors it’s Y they lend out to U for nothing 0.7%-1% they earn their revenue from securities lending to Hedge Funds at 12-14% & Rehypothecate (lend out your collateral..

4/14 …(0.7-1%)+ what they receive for securities lending on it, which they share 80% of all revenue with the community via buying the $CEL token & other crypto, you essentially become the bank, never having to pay taxes out of your own pocket. It’s a self-sustaining system.

5/14 You get to borrow against your crypto at 0.7%-1% so U prevent from paying Cap taxes but U would need to pay taxes on your yield 1099 (ordinary income) “22%-37%”. Will use 24% tax (Income bracket $86,376-$164,925) just as an example.
So let’s say you have $1,000,000 in $CEL

6/14 U make 4.8% per year even if $CEL trades sideways, this will move to 7% based on how they are using the treasury to generate more yield over time but will keep with the current rate in this example. That is $48,000 per year in ordinary income 1099...

7/14 But you can borrow against your $CEL crypto at 0.7%-1%* cash (ideal as cash is a liability not an asset such as $CEL $BTC etc) to cover your taxes without creating a taxable event.

8/14 Example: $48,000 X 24% is = $11,520 in taxes, you borrow it against the $1,000,000 $CEL ... at 1% which is equivalent to $9.60 per month. Which is more than covered by annual yield. At $11,520 (LTV 25%) * 4 = $46,080 collateralized.

9/14
1,000,000-$46,080 = $953,920 * 4.8%=$45,788.16/12 = $3,815.68 per month minus interest of $9.60= $3,806.08 in green per month
Another way to understand this is that you are are the bank who is making NET INTEREST MARGIN. U are lending your crypto to Celsius for 4.8% $CEL ..

10/14 .. & borrowing at 1% means you would be still yielding effective rate of 4.56% Net Interest Margin based on locked collateral you aren’t earning yield on so ($3,806.08*12) = 45,672.96 So effective rate is ($45,672.96/$1,000,000) = 4.56% as shown above in the math. $CEL ...

11/14 .. You never have to ever pull money from YOUR pocket & pay taxes on capital gains or income. U have become the Bank & now understand why Banks make so much money. Cash is a liability. This does NOT work if you lock up all your collateral. Why U could buy more $CEL 💡...

12/14 ..No reason to ever sell assets, much less go into a liability such as cash that is losing purchasing power due to inflation.

Everyone will learn this in time. They will all want to deposit their crypto in Celsius $CEL . The closest competitor (if you can call it that is..

13/14 .. makes you pay 6% if you borrow against your crypto or 4.5% I believe at the very lowest. Can they fix this? Mathematically it’s very hard because NO ONE except Celsius gives 80% revenue back to community. The powerful value proposition no one discusses enough. $CEL ...

14/14 Now you know why.. I continue to say the number one differentiator between $CEL Celsius & it’s competitors while the list is LONG... the ability to borrow in terms of UTILITY Is #1 ...& by EOY 🔥🚀©🌕

https://twitter.com/WesleyBKress/status/1386114044780638208

Bonus** Detailed Example $CEL

https://twitter.com/wesleybkress/status/1386817564588744707