Thread by @thomas_quinlan

#FIAT thinking applied to #cryptocurrency, and in particular, @CelsiusNetwork and the $CEL treasury. A thread.

@Mashinsky @tusharnadkarni @otisa502 @Zach_HODL_ON @JoshHODL @TheFinancer @CelsiansNetwork @DocumentingCel

One thing that happened with the drop in crypto, and in particular $CEL, is that some #Celsians experienced margin / liquidation calls.

If they took loans against $CEL, their LTV (Loan to Value) ratio may have gone above the values for margin call or liquidation with $CEL around $2.

One thing that should be noted automatically -- the @CelsiusNetwork #loans team works TIRELESSLY to help people in these situations. @Theloansqueen runs an amazing team and she and her staff should be immensely proud.

If you respond when required if this happens, they will work with you to straighten things out. Even on nights and weekends!

That said, a lot of people needed the price of $CEL to be higher to maintain their LTV. But a thought occurred to me -- there is A LOT of $CEL sitting in the @CelsiusNetwork treasury: 334,769,441 $CEL to be precise, worth at these prices, more than $700 million dollars.

No one has claim to that money except the company itself. There are likely legal and compliance ramifications of which I'm not aware in proposing the idea that I'm about to propose, and I'm not a lawyer or financial advisor nor do I play one on TV.

That said, why not create a service to provide margin call coverage for people? It wouldn't be free - it would be a paid service similar to the possible insurance offering they're looking at.

(We could call it the "Treasury Assisted Recovery Program", or "TARP" for short. ;-) )

Celsians could pay a fee, or potentially a portion of their weekly rewards, to sign up for this service, and if they faced a margin call or liquidation call, they could employ a buffer from the treasury to bring them into a more reasonable LTV for a certain period of time.

(It would have to be limited based on the fee, or it doesn't make sense.) The $CEL would still be owned by the treasury, but lent to the user until the price recovers, or until the time period for which they've paid runs out.

This has several potential benefits:

1 - Provides utilisation against the $CEL in the treasury, possibly temporarily making $CEL more scarce. (That $CEL would have to be 'pledged' and can't otherwise be used.)

2 - Hopefully it alleviates some of the workload on the loans team.

3 - Gives people more peace of mind when the price dips and gives them more time to add their own collateral.

4 - Provides another income stream to @CelsiusNetwork potentially.

5 - It keeps with the "fee free" mantra from the company as this is entirely voluntary on the part of the users.

It has possible drawbacks, too, of course:

1 - Where the $CEL treasury counts for the value of the company, this could possibly diminish.

2 - This may change how $CEL is viewed by governance / compliance bodies.

(I believe this to be less of an issue given how it's already used, but I honestly don't know.)

3 - It's a product that would need to be built, and complicates things from the user perspective potentially. (Maybe make it an "advanced" feature perhaps?)

As an idea, it seems to work, but of course we go back to my not being a lawyer / financial advisor - but I thought it worth putting out there for others to explore.

(I'm not sure why it added a heart icon after "fiat" but presumably it has something to do with the car brand.)