1/33 CEL Token Utility is Essential for Chapter 11 Recovery Plan & Onwards
6 ways to increase CEL utility, build up Celsius' treasury & ensure a bank run NEVER happens again
📽️ @YouTube explainer video:
📝 @Medium article: link.medium.com/lDf9uay4ytb
🧵 👇
6 ways to increase CEL utility, build up Celsius' treasury & ensure a bank run NEVER happens again
📽️ @YouTube explainer video:
📝 @Medium article: link.medium.com/lDf9uay4ytb
🧵 👇
2/33 Every great crypto company has a great utility token.
@Binance has $BNB, @FTX_Official has $FTT & @cryptodotcom has $CRO.
When Luna crashed in May 2022, Binance didn’t bat an eyelash at the $1.5 billion loss.
Why?
@Binance has $BNB, @FTX_Official has $FTT & @cryptodotcom has $CRO.
When Luna crashed in May 2022, Binance didn’t bat an eyelash at the $1.5 billion loss.
Why?
3/33 Binance has $BNB (market cap of $50 billion at the time of the crash, $42 billion in today’s valuation), at its disposal.
By creating strong utilities around $BNB, Binance also created a war chest, which insulated them from the staggering $1.5 billion loss on Luna.
By creating strong utilities around $BNB, Binance also created a war chest, which insulated them from the staggering $1.5 billion loss on Luna.
4/33 In CZ’s own words: “It’s just money, lol…”
5/33 Utility tokens are the backbone of crypto companies.
Utility tokens derive their value from the exclusive access to services they provide to the user.
Utility tokens derive their value from the exclusive access to services they provide to the user.
6/33 The more value they offer, the higher the demand for the token.
This gives users the incentive to hold onto them, thereby increasing the value of the platform’s treasury.
This gives users the incentive to hold onto them, thereby increasing the value of the platform’s treasury.
7/33 When banks need a taxpayer-funded bailout every 8 to 10 years, they turn to the FED.
In crypto, there’s no FED to save you from a hack, lost keys or a black swan event BUT your treasury.
In crypto, there’s no FED to save you from a hack, lost keys or a black swan event BUT your treasury.
8/33 By increasing exclusive incentives for CEL token holders, we will increase buying pressure on CEL Token as well.
The result is a profitable Celsius with a fortified treasury to ensure a bank run like what led to the June 12th ‘pause’ on withdrawals NEVER happens again.
The result is a profitable Celsius with a fortified treasury to ensure a bank run like what led to the June 12th ‘pause’ on withdrawals NEVER happens again.
9/33 How will we reward the loyalty of those Celsians who stuck around?
Well, in Celsius 2.0, it pays to be a CEL token holder!
We plan to increase CEL utility by using the existing tier system (with a few modifications).
Well, in Celsius 2.0, it pays to be a CEL token holder!
We plan to increase CEL utility by using the existing tier system (with a few modifications).
10/33 We have identified 6 core opportunities to increase CEL utility, with potential for future expansion.
The 6 core opportunities are:
1. Tier System
2. Withdrawals
3. Loans
4. Swaps
5. Yield & Higher In-Kind Yield
6. Access to Funds
The 6 core opportunities are:
1. Tier System
2. Withdrawals
3. Loans
4. Swaps
5. Yield & Higher In-Kind Yield
6. Access to Funds
11/33 Tier System:
There are 650,000 active users worldwide with a balance of $100 or more currently on the platform.
We need approximately 55% of them to hold CEL token in our tier system.
There are 650,000 active users worldwide with a balance of $100 or more currently on the platform.
We need approximately 55% of them to hold CEL token in our tier system.
12/33 Celsius has over 200 institutions, partners & exchanges, including @Visa, @0xPolygon, @bitfinex, @HorizenLabs, @1Inch and @chainlink.
We will require all financial institutions, partners & exchanges to maintain Platinum status (25K CEL or more) to do business with us.
We will require all financial institutions, partners & exchanges to maintain Platinum status (25K CEL or more) to do business with us.
13/33 Here’s a hypothetical ex:
There are 692 million total CEL tokens.
Of that 692 million, approx 50% (330 million) is owned by the Celsius treasury.
Say we get 100,000 users in the Bronze tier, that’s 50 million CEL tokens off the market.
Bronze: 500 x 100,000 = 50,000,000
There are 692 million total CEL tokens.
Of that 692 million, approx 50% (330 million) is owned by the Celsius treasury.
Say we get 100,000 users in the Bronze tier, that’s 50 million CEL tokens off the market.
Bronze: 500 x 100,000 = 50,000,000
14/33 50,000 users in the Silver tier ties up another 50 million CEL.
Silver: 1,000 x 50,000 = 50,000,000
15,000 users in the Gold tier reduces liquidity by another 150 million CEL.
Gold: 10,000 x 15,000 = 150,000,000
Silver: 1,000 x 50,000 = 50,000,000
15,000 users in the Gold tier reduces liquidity by another 150 million CEL.
Gold: 10,000 x 15,000 = 150,000,000
15/33 Finally, say we get just 3,000 users in the Platinum tier, that’s a further 75 million CEL tokens off the market.
Platinum: 25,000 x 3,000 = 75,000,000
In this ex, we’ve removed 325 million CEL tokens off the market & significantly increased the buying pressure on CEL.
Platinum: 25,000 x 3,000 = 75,000,000
In this ex, we’ve removed 325 million CEL tokens off the market & significantly increased the buying pressure on CEL.
16/33 Withdrawals:
In Celsius 2.0, withdrawal fees are used to buy CEL tokens & increase the value of the treasury.
In Celsius 2.0, withdrawal fees are used to buy CEL tokens & increase the value of the treasury.
17/33 Loans:
Crypto loans are back!
Your tier level will be like a credit score; higher tiers will qualify for higher limits & better interest rate payments on loans.
Crypto loans are back!
Your tier level will be like a credit score; higher tiers will qualify for higher limits & better interest rate payments on loans.
18/33 For Example:
The Platinum tier has access to all five LTV options.
The Silver tier has access to three LTV options — 25% & lower.
The Platinum tier has access to all five LTV options.
The Silver tier has access to three LTV options — 25% & lower.
19/33 Swaps:
Who doesn’t love easy and convenient swaps?
Your fees & swap limits will depend on your tier level.
Who doesn’t love easy and convenient swaps?
Your fees & swap limits will depend on your tier level.
20/33 For Example:
A Silver tier member swaps $50,000 of crypto incurring an $18.50 fee. ($50,000 x 0.037% = $18.50)
A non-member swaps $10,000 of crypto incurring a $15 fee. ($10,000 x 0.15% = $15)
A Silver tier member swaps $50,000 of crypto incurring an $18.50 fee. ($50,000 x 0.037% = $18.50)
A non-member swaps $10,000 of crypto incurring a $15 fee. ($10,000 x 0.15% = $15)
21/33 If the non-member swapped $50,000 in crypto (over 5 days), they would incur $75 in swap fees vs. the Silver tier member swapping $250,000 (over 5 days) & incurring just $92.50 in swap fees.
22/33 Yield/Higher In-Kind Yield for all assets
Are you excited for higher in-kind yield on your crypto? Us too!
Based on your tier level, you’ll earn a higher in-kind bonus yield for all your assets on the platform.
Are you excited for higher in-kind yield on your crypto? Us too!
Based on your tier level, you’ll earn a higher in-kind bonus yield for all your assets on the platform.
23/33 For Example:
Let’s say you’re a Platinum member with 1 BTC on the platform & the current APY for BTC is 5%.
You will earn an additional 25% increase in-kind on your BTC, making the total yield/APY 6.25%. (5 x 25% = 6.25%)
Let’s say you’re a Platinum member with 1 BTC on the platform & the current APY for BTC is 5%.
You will earn an additional 25% increase in-kind on your BTC, making the total yield/APY 6.25%. (5 x 25% = 6.25%)
24/33 The weekly reward for a non-member on 1 BTC at 5% would be 0.00096 BTC/per week. (1 BTC x 5% = 0.05 BTC per year / 52 = 0.00096 BTC per week).
25/33 The weekly reward for a Platinum member on 1 BTC at 6.25% would be 0.0012 BTC per week. (1 BTC x 6.25% = 0.0625 BTC per year / 52 = 0.0012 BTC per week).
26/33 Therefore, a Platinum member with 1 BTC on the platform earns an additional 0.00024 BTC per week & 0.01248 BTC per year (0.00024 x 52) over a non-member.
27/33 Access to Funds:
We know timely access to funds is paramount & you guessed it! The higher your tier level, the quicker your access to liquidity.
We know timely access to funds is paramount & you guessed it! The higher your tier level, the quicker your access to liquidity.
28/33 While we feel these opportunities are the most effective & easiest to implement right now, we do have ideas for future CEL utilities, including a Celsius VISA credit card, a dedicated customer service line & decreased fees on CelsiusX.
29/33 To conclude, for Celsius 2.0 to succeed, we need to prove to ourselves & future depositors that we can forge a profitable company & prevent a future bank run.
30/33 Not only will the implementation of increased CEL utilities do just that, but we feel capitalizing on these opportunities will significantly increase the value & use case of CEL Token as well.
31/33 The stone that the builder rejected has become the chief cornerstone.
The community is the builder now.
And that stone is CEL Token.
The community is the builder now.
And that stone is CEL Token.
32/33 Your Fellow Celsius Community Members,
Otis, Anthony & Jade
@otisa502 @iTzAnthonyNap @cryptoismyjam
Otis, Anthony & Jade
@otisa502 @iTzAnthonyNap @cryptoismyjam
33/33 I hope you've enjoyed this thread on $CEL utilities!
Like, retweet & tag the @CelsiusUCC & @WhiteCase in the first tweet below to spread the word to the #Celsian Community.
Like, retweet & tag the @CelsiusUCC & @WhiteCase in the first tweet below to spread the word to the #Celsian Community.
https://twitter.com/otisa502/status/1573398655784009728
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