Crypto lending is becoming big business
So I have been reading up on the trend. There are more and more projects out there that are starting to give interest on cryptocurrencies. And not just a "token amount" but real tangible ROI.
If we look at the interest rates overall in Europe it is a sad picture.
I have written before about the Fire movement inspired by @connecteconomy and this is something that fits into that picture.
So if there are companies like Nexo that are offering 6.5% interest rates on stable coins that is amazing news.
But now there are players like the Celsius network who are not only providing interest on the stable coins but also on the cryptocurrencies themselves. So if you are a Hodler at heart this is a way to gain some extra income on your coins risk free.
The Celsius is an Ethereum ERC20 based platform. that provides different types of financial tools that help network members in lending, borrowing, and depositing different crypto assets.
They created the CEL token to functions in a peer-to-peer platform that will help to eliminate the need for the financial middlemen like as banks and exchanges with coin holders who will earn rewards for lending.
Currently you get paid in the token you deposited and the interests vary from coin to coin.
Now we do know there is this famous saying:
not your keys not your crypto.
And it is true that in these cases you do not have the keys to your crypto anymore. They are stored in the wallets of BitGo (BitGo wallets are the leading institutional-grade wallet for digital assets and are used by hundreds of exchanges and institutional investors around the world.)
But it seems to me that they are doing their utmost to secure the tokens and on top of that are insured up to 100 million dollars in case of hacks or theft.
So I took the leap and downloaded the app and deposited a bit of Ripple I still had "laying around"
This all arrived safely and is now quietly chugging along, gaining value and getting 3.25% interest.
I might put in more as time passes and split it over Nexo and Celsius to split the risk but having my money sitting in my saving account losing value to inflation and 0% interest is not something I want to have happen for now. And if I can get a bit more on my crypto holdings that is even better.