Listing Proposal: Add CEL (Celsius Token)

Governance New Asset
#1

Listing Proposal of CEL on AAVE

Summary: Listing CEL token on AAVE

Hi AAVE Community,

The Celsius team would like to call upon all of you loyal AAVE users to support the listing of our CEL token as a collateral asset. We are confident that having CEL on AAVE would facilitate tangible growth in both of our ecosystems.

About Celsius

Celsius Network is a financial technology (fintech) platform that offers interest-bearing savings accounts, borrowing, and payments with digital and fiat assets. Celsius returns 80% of its revenue to network users in rewards, while the other 20% funds project expansion. This value proposition challenges conventional banking models while prioritizing the Celsius community. The Celsius Network forms an integrated ecosystem by offering its suite of products with its native CEL token alongside leading digital assets and fiat currencies.

  • Celsius has the largest native inventory of any crypto lender, with a current customer asset pool of $9bn and 45 assets supported, across the most liquid assets and altcoins.
  • Celsius has in-house expertise in De-Fi and staking, enabling us to earn yield for our users and source hard to borrow assets for our customers.

CEL Token Economics

The CEL token is an ERC-20 token that runs on the Ethereum Network. Utilization of the CEL token affords each Celsius user group unique benefits:

  1. Earners: By accepting rewards in the form of CEL tokens, earners receive up to 30% more rewards on all deposits of non-CEL tokens.
  2. Borrowers: By paying interest with CEL tokens, borrowers receive up to a 30% discount on interest payments.
  3. Institutions: By paying interest with CEL tokens, institutions borrowing tokens from Celsius receive a 30% discount on their interest payments.

The reward percentages originate from the Celsius loyalty program, which refers to each user’s CEL holdings. For instance, the Bronze reward level requires 5-10% of your portfolio to reside in CEL, Silver requires 10-15%, Gold requires 15-20%, and Platinum requires 20-100%. CEL’s most beneficial use is for earning compound interest, especially if you can maximize rewards through a substantial allocation of CEL in your portfolio.

CEL Token Flywheel w/ Formula & Math Defined

The Future of Celsius & AAVE

  • Develop a robust lending and borrowing market on the AAVE platform
  • Leverage the rapidly growing and engaging Celsius community to drive traffic, involvement, awareness, and liquidity to AAVE.
  • Multi-platform initiatives as Celsius expands its DeFi footprint and ventures through the world of swaps, decentralized exchanges, and DeFi lending.
  • A new DeFi on/off ramp for CEL token as the demand for CEL token grows.
  • Any initiatives conjured by the AAVE community!!

Website: https://celsius.network/

Twitter: @CelsiusNetwork

Github: Celsius Network · GitHub

Audits: Celsius Network Partners with Chainalysis To Confirm Audit of $3.31 Billion in Assets

Thank you for your consideration, we are so excited to build our future in DeFi in tandem, and look forward to answering any and all of your questions!

7 Likes
#2

Thanks for submitting this application!

I’ve been using Celcius (+ holding CEL) for the past few months and generally satisfied with the experience. Only comment I have is, I believe centralized crypto services tokens (such as CEL, NEXO, FTT, etc) can present potentially much greater risk to lending platforms than their volatility and liquidity profiles would suggest.

  • Ownership is highly concentrated
  • Risk of information asymmetry
  • Possibility of positions becoming “too big to fail” like the FTT borrow position on Cream Finance

Something for the community and Aave risk function to consider when evaluating the feasibility of onboarding and appropriate risk parameters.

2 Likes
#3

First off, awesome to hear you’re a happy Celsian!

Your take on CeFi institutions is totally valid, and one that we’re constantly trying to account for even in how we operate our own accounting practices. As a further out point, we have an initiative internally to make our books more auditable by third parties, considering 90% of our fin-ops settle on a distributed ledger. We want to have a way for people to be able to understand Celsius’s financial position at any time. You might have heard references to this project under the name “proof of community”.

That said, considering this isn’t yet ready, something we can do is provide you with our ERC20 addresses so you’re able to see on chain our activities. While this wont expose our user and institutional liabilities to you as funds route through our pooled wallet, there are some things this might be immediately useful for in your risk assessment:

  1. Close the gap on some of the information asymmetry

  2. Allow your team to have visibility into the “ownership concentration”

Expanding on point 2, (don’t hate me for saying this, i know its all about permission-less finance) but as a way to mitigate against the “too big to fail” risk vector, you could put in parameters for “size of trade/borrow/lend” on value that moves from 2-3 hops from the base erc20 address.

Hopefully this gives some context and ideas. We’re really happy to see how we can work with you guys to make this possible, so thanks in advance.

3 Likes
#4

Celsius = quality

I’m a big fan of both Aave and Celsius, so this makes sense

Celsius already supports $Aave - I feel it should be mutual

This is a step in the right direction, let’s make it happen :slight_smile:

1 Like
#5

I love both Aave and Celsius - both have done very good things for the community even when very different in nature. Celsius is very transparent and already a lot of their activity is visible on chain, however they are also developing “proof of community” that will allow everyone to see everything (while protecting the privacy of their users and institutional clients). This is a big deal and nothing we’ve seen before.

I’d love to see CEL token used as collateral in Aave.

2 Likes