[CEL] - MIP6 Collateral Onboarding Application

Who is the interested party for this collateral application?

  • Celsius Network Limited, English Company Number 11198050

Provide a brief high-level overview of the project, with a focus on the applying collateral token.

  • The Celsius Network is a leading retail yield-generation platform for both retail and corporate users, as well as a market-leading lending provider. Celsius Network operates on a community-first mandate, aiming to return up to 80% of its revenue back to its users in the form of rewards for their crypto. Combining attractive interest rates, low fees, and a strong community, the platform has experienced considerable growth since inception with over 500K registered users and $17B in community assets held in the platform.
  • CEL Token finds its foothold within the MakerDAO ecosystem as a collateral asset with both earning and borrowing capabilities. Due to the nature of the CEL utilities (detailed below) and our rapidly growing user base, combined with the ratio of Celsius users who choose to earn in CEL (> 58%), there is a rapidly growing demand for both CEL Token deployment and acquisition. As Celsius crosses half a million users and over $17 billion in assets, the consistent growth and traffic for CEL Token would be complemented elegantly by MakerDAO’s platform, allowing Celsius and MakerDAO to establish a symbiotic relationship - empowering the users of both platforms to thrive, as well see palpable platform growth, security, and longevity for both parties.
  • As a supplemental point, Celsius has launched an internal initiative towards financial transparency and auditability by third parties with the aim to have over 90% of our financial transactions settling on an open distributed ledger. Our goal being that any individual, regardless of if they are a Celsius user, have the ability to understand Celsius’ financial position at any given time. This on-going incentive is aptly named “proof of community”.
  • As a step in this direction, we will provide MakerDAO and its community with Celsius’ ERC20 addresses to enable all MakerDAO users the opportunities to self-audit transactions on chain. The clarity this provides to both the community and your own internal risk assessment includes:
  1. Close the gap on some of the information asymmetry
  2. Allow MakerDAO, its team, and the community to have visibility into the “ownership concentration”

It is an amalgamation of both the CEL Tokenomics, the parallel growth of two industry leading platforms, as well as the ability to move forward with transparency, hand-in-hand, that we believe CEL would be a great collateral asset on MakerDAO. Additionally, Celsius is already a significant contributor to the DAI ecosystem, as we currently lend DAI against WBTC, ETH, and a slate of other assets. We eagerly look forward to continuing and expanding our involvement with the Maker community.

Provide a brief history of the project.

When Celsius launched its product in June 2018, the CEL Tokens from the ICO were locked for ICO investors for 6 months, in order to stay as compliant as possible in an uncertain regulatory landscape. Additionally, the decision was made to lock all employee CEL tokens for 1 year from ICO investors unlock date. Due to a lack of clarity regarding the classification of tokens as a security, Celsius also decided to forego exchange listing for a year after product launch in compliance with Rule 144 of the securities act, and to file a form D with the US SEC. The first listing of CEL on a centralized exchange occurred in August of 2019.

All of these factors presented major challenges for CEL trading and volumes. However, the choices made by the Celsius executive team also prevented the speculative trading and price manipulation common among other tokens released during this time.

Though this path was uncommon and met with resistance it also protected the Celsius community and allowed the product to mature to the point of natural price support through the functionality of CEL utility and demand. As a result, today CEL has experienced steady sustained growth through organic demand and community utilization as was originally intended.

Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.

Explorers:

*** Etherscan**

Github Activity: Celsius Network · GitHub

Whitepaper:

www.Celsius.network

Link any available audits of the project. Both procedural and smart contract focused audits.

Link to any active communities relating to your project.

How is the applying collateral type currently used?

CEL Tokens provide their holders with utilities over the Celsius platform, including receiving preferable rates for Celsius’ services - higher rewards rates when using the ‘Earn’ service, and lower interest rates when borrowing from Celsius fiat, stablecoins or coins, based on loyalty tiers, determined by the ratio of CEL Tokens to other coins held in their Celsius accounts, when they choose to pay or receive payment using the CEL Tokens.

You can read more about these benefits here

Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?

Celsius Network Ltd is the issuer of the CEL token and it resides in the UK.

Where does exchange for the asset occur?

  • Uniswap
  • Liquid
  • FTX
  • OKEx
  • Bitfinex
  • Bittrex
  • With Celsius directly (OTC)

List any possible oracle data sources for the proposed Collateral type.

  • Chainlink CEL/ETH Price Feed
8 Likes

Long overdue to list CEL. Long-term user of it, and in my opinion one of the most legit and competent projects in the space.

3 Likes

I remember attending an NFT conference in 2019 and seeing Alex Mashinsky on stage and thinking this guy is nuts. But here we are. The dude has delivered–clever thinker/visionary. Congrats to the Celsius Team on your success.

4 Likes

I don’t think it would be in the best interest of Maker to have Cel as collateral
given the ongoing battle we have with reducing the reliance of DAI on USDC
do we really want to add another asset that is more than 50% controlled by
the issuing company. I agree that it is pretty stable collateral but the degree of
central ownership is concerning to say the least.