Through a compounding yield service and low-cost instant loans available via the internet and mobile apps, Celsius helps over a million customers worldwide to find their path to financial independence. The Celsius platform provides members access to curated financial services that traditional financial institutions do not offer, based on the belief that financial services should serve the customers and community. In addition to using Celsius Network to buy cryptocurrencies, users can borrow or invest their crypto-assets for interest. In the latter instance, the company offers a rate of interest up to 18.63% in dollars, which is comparable to the rate Terra offered with the Anchor Protocol at the time.
What is a Celsius Network? How Does it Works?
Celsius Network is a crypto lending app for Android and iOS. In Celsius, we wanted to provide fair and impartial information to the public so they would be able to access the transparent services they were accustomed to, but have abandoned with banks, i.e., fair interest rates, low loan rates, and no fees. Fast and simple transactions.
If you keep cryptocurrency funds in Celsius, you earn interest on them every week, just like a savings account. Here’s how it works:
- Put your cryptocurrency in Celsius.
- After that, you can borrow it from institutional and retail borrowers.
- Whenever Celsius receives revenue from loans and other activities, you will receive a payment each Monday. Celsius returns 80% of its revenue to its users.
Celsius Wallet’s Activity For The Past 30 Days
Lets us explore the activity of the troubled Celsius Network related wallets on Sushiswap ecosystem. For our analysis we considered 11 Celsius wallets and tracked transaction on these wallets on Ethereum as well as Polygon blockchains for the past 30 days. Here are the following areas we explored
- Token Transfers
- Swapping activity
- Lending activity
- Borrowing activity
- Liquidity Providing activities
All these activities are tracked for the past 30 days using Flipside Crpyto’s data warehouse and here we present our findings to you. The following chart shows the DEX swap activity on Sushiswap (Ethereum & Polygon). In the past 30 days around USD 47,000 worth of tokens were swapped. Among them 35K USD worth of ETH is swapped to BTC and the rest is swapped from CRV to WETH.
Now lets us check the token transfers activity. We tracked the SUSHI and SushiBar tokens moving in and out of Celsius wallets and the following chart shows the activity by day. In the past 30 days Celsius was winding down their SUSHI positions by existing several Sushibar tokens and converting to SUSHI at regular intervals. After converting all their SushiBar tokens to SUSHI tokens they were sent to centralized exchange FTX. We could not track what happened to those tokens after they landed on centralized excahnges.
Borrowing, Lending & Liquidity Pool Activity
We scanned the data warehouse table to find traces of any borrowing, lending or liquidity related activities and we could not find any in the past 30 days. Since the network got in to issues with the recent meltdown of crypto ecosystem, the Celsius network has been consolidating all their positions and trying to stay alive. We located this Zapper Fi profile that tracks all 11 Celsius wallets
The Zapper profile also confirms our analysis of Celsius winding down all their Sushiswap ecosystem related activities and consolidating their positions to find a way to exit the system in a graceful way. On the day we published the analysis, Celsius had 1.4 billion USD net worth across 11 wallets with $419 million USD in the wallet and 378 million USD on Aave V2, followed by 372 million USD in Ethereum Staking ecosystem.