Celsius Loan

Trying to wrap my head around if there is any point in *not* taking out a loan on Celsius if I am already providing BTC and ETH there to collect rewards. As it currently stands I can take out a loan in USDC for 1% APR and then stake it somewhere for a greater return, Celsius themselves offer 7% on it. I would be using the BTC and ETH I’m providing there already as collateral. The only risks I can see with doing this would USDC going under (in which case the market would be in big trouble anyways). Am I missing something?

View Source

4 thoughts on “Celsius Loan”

  1. You’re missing the fact that you won’t get any rewards on the collateral, typically 4x the borrowed money. Unless your collateral is XLM or some other coin with low rewards, it’s totally not worth it.

    Reply
  2. You put up around 4x times the collateral for the loan and you are not earning any interest anymore on that collateral that’s what you are missing. The only exception is on the NEXO platform you can get a 0% interest loan against your NEXO token (15% LTV) which does still earn interest as collateral!

    Reply
  3. Yes, no Capital gains on your loan on the purchase you make. Such as a car. And when you pay the loan back and get your collateral. It’s just easier if you have a good amount of crypto to lend it out to make big purchases dentist so I have a capital gains loss

    Reply

Leave a Comment