Thread by @PlatoAtWork

The reason @CelsiusNetwork is not at risk is that they are responsible for #crypto commodities not valuations. They provide liquidity to markets in the form of a commodity.

The value of the commodity decreasing doesn’t matter.

1/15

In fact, outside of #Luna and its #UST pair, the underlying commodity #CelsiusNetwork has is still the same.

And the yield it provides is a commodity relationship — not a valuation one.

Thus, users receive a stable amount as yield because the yield contract is stable.

2/15

If I offer you sugar on an exchange and the price goes down on it, I still own my sugar. Someone else may have determined my sugar is worth less — but that’s not the risk at hand.

The commodity itself is intact.

3/15

#crypto is misunderstanding @CelsiusNetwork. If you stake Eth and the price of #Eth goes down, your staking contract hasn’t changed.

Thus, the yields are not at risk. The commodity is still rewarding the staking.

Only the network value of the commodity has changed.

4/15

Price and yield are different. #CelsiusNetwork only deals in #crypto and doesn’t rehypothecate for dollars, for the most part.

This is not a conventional liquidity run. Celsius literally is the liquidity and thus all assets are safe.

5/15

#WrappedBTC, for example, is not at risk just because the price of #Bitcoin goes down.

#Crypto is an economy. It’s not a “dollar.”

@CelsiusNetwork is a liquidity provider in the #crypto economy. It’s not a “dollar.”

6/15

The #Luna crash was different. The peg was lost because the actual underlying asset lost it’s peg — and that became the reason for buying and selling.

@CelsiusNetwork is indifferent to price. It just delivers protocol yield.

It’s not an investor — more like a farmer 👨‍🌾

7/15

That’s why @mashinsky says that @CelsiusNetwork developed a killer app — yield.

That’s also why #Bitcoin receives such poor yield — because #Bitcoin as a network yields so few #Bitcoin.

All other higher yielding networks are proof of stake - as safe at the network itself. 8/15

If your assets on @CelsiusNetwork network are at risk it’s because the network itself is at risk. For example, @CelsiusNetwork still had #UST and #Luna — it was just pegged poorly because #Luna was failing.

9/15

@Mashinsky mentions constantly that @CelsiusNetwork had $30 billion AUM and that it’s now $15 billion AUM — but the underlying commodity count under management is still the same.

10/15

@CelsiusNetwork is yield as a service. #crypto should be on their knees thanking @CelsiusNetwork, because frankly staking is the pain in the ass.

@CelsiusNetwork is the killer app for yield in crypto. It’s literally mass liquidity farm for the entire community.

11/15

@coryklippsten @mikealfred and other @CelsiusNetwork FUD spreaders are being assholes on this issue.

They misunderstand the service #CelsiusNetwork provides to the community.

12/15

Staking contracts are essentially smart contracts for yield. That’s basically a bond.

Shorting #CelsiusNetwork is like shorting the #crypto bond market.

That’s the most boring stable yield part of the market. That’s the whole point — it’s a yield contract.

13/15

The value of your yield is your problem and not relevant here.

#CelsiusNetwork is completely misunderstood.

If @CelsiusNetwork can’t pay yield, it’s because the whole network isn’t paying it. If #Solana wasn’t yielded, it’s because it wasn’t paid out.

14/15

@Mashinsky should hire me for messaging consulting — really. Because this is getting out of hand and I’d be happy to help.

15/15