JCC Profile picture
Jun 22 8 tweets 6 min read
@CelsiusNetwork - Risk Assessment

- Minimal exp to #UST (Pulled out of #Anchorprotocol early following risk mitigation process)
- No directional exp to #luna
- No forced selling of stETH at discount (withdrawals paused & @Mashinsky stated 'plenty of ETH').

#CelShortSqueeze
1/
ON stETH:
- Current Discount is 5.4% (and closing) on ~$400M-$500M = ~$25M
- Discount represents ~0.25% of $10B in AUM.
- Discount likely has a floor (arbitrageurs/speculators will intervene as PoS date approaches).
- Plenty of FUD online around this low risk exposure.

2/
- Over-collaterized retail lending (no risk)
- Nearly 100% collaterized institutional lending (including potential loans to #3AC directly or indirectly)
- On-chain borrowing is known & public. Liquidation levels have been lowered/loans repaid (situation stabilized)

3/
IMPORTANT: Two types of loans.

- Institutions borrow stable coins w/ collaterized #Fiat (no risk)
- Institutions borrow crypto w/ collaterized stablecoins or #fiat. Note: As #crypto prices go ⬇️, the collateral covers a higher % of the loan (less risk)

4/
UNKOWN:
- #CelsiusNetwork lends AND borrows stablecoins depending on cost of capital.
- Tether liquidated a #CelsiusNetwork #USDT loan. No details available. Note: Tether is a shareholder so closure likely coordinated.

5/
OTHER:
- Closed a $750M equity round only 7 months ago!
- Largest #BTC miner in NA. Less AUM means more #BTC to cover fixed expenses.
- Owns @GK8_Security, a world leading custody provider tailored to institutions.

6/
CONCLUSION:
- #Celsius has a ST liquidity imbalance. Some coins take a big longer to get back.
- Withdrawal pause is part of Risk Mitigation.
- Collaterized borrow/lending is safest way to earn yield.
- Not FA, IMO they are in better shape than mkt thinks

Retweet 2fight FUD

7/

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with JCC

JCC Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @jcc_ag

Jun 21
@CelsiusNetwork - A look forward:

- They come up w/ a plan to return $$ over time to anyone that wants to withdraw (highly likely IMO since they are illiquid, not insolvent)
- They stabilize the business (albeit smaller) while the market bounces back pre-election US

1/
- $CEL continues to trend 🆙due to #CelShortSqueeze, slow release f/ App, higher trading volume, yield from cxCEL deployment, and more utility
- They uncover/prove coordinated FUD campaign & market manipulation that regains some of the trust lost (perhaps some $$ too)

2/
They:

- Launch free @Visa Signature credit card w/ $CEL benefits (Jul-Aug)
- Roll out on/off ramps in most US states (Jul-Aug) and abroad (Q4)
- Expand free #swaps (minimal spreads) to more countries (Q3)
- Create a #DAO to self-insure against counter-party risk (Q1 '23)

3/
Read 7 tweets
Feb 13
@CelsiusXDeFi future is so bright!!

Mixing and matching ASSETS and PROTOCOLS to take your liquidity where it will be treated best represents such a massive market that it is difficult to grasp the potential.

1/
It will be particularly beneficial to $CEL token.

@CelsiusNetwork team is not hyping this (conservative on the regulation side), but I see yield paid on $CEL going up in the next few months (along with its demand) as the #CEL treasury is more efficiently deployed.

2/
Hope @Zach_HODL_ON and team are pushing to find added utility for $CEL in addition to being a liquidity generating asset (ie gas requirement?)

3/
Read 7 tweets
Feb 2
Short story about my mother-in-law.

She is a 70-yr old Argentinean whose husband recently passed away. Worked all her life to raise 4 kids. Middle class. Her income consists of only a portion of her husband's pension fund that does not keep up with 50%+ inflation.

1/4
She had a small amount of US$ stored under the mattress to protect it from bank/government confiscation (as history taught her). I convinced her family to open a @CelsiusNetwork and deposit 75% USDC/25% CEL token.

2/4
Her USDC now earns ~10% & her CEL will soon earn 6%+. This generates enough yield to double her income & her funds are now protected. Now, waiting for swap function to buy her some #btc 😎

3/4
Read 4 tweets
Dec 25, 2021
In ‘18, I found @Mashinsky & @CelsiusNetwork. I believed in the mission & bought $CEL.

My first loan was supported by a signed document 🤯. It was early days. I watched #cel do nothing for months, but I believed.

1/
Then, Series A came around and I doubled down. Thanks to Alex for allowing me (and 1,000 others) to participate at a low valuation.

I continued believing in the mission despite the bear market.

2/
In 2021, the network grew exponentially. Some growing pains manifested. New products got delayed. FUD all over.

BUT I continued to believe in global financial inclusion and the @CelsiusNetwork community.

3/
Read 8 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(