Chainlink Starts Using Celsius’ Treasury System For Assets Management

Chainlink starts using the unique treasury system from Celsius in order to manage its crypto assets while moving to the custodial crypto landscape as we are reading in the following chainlink news today.

Chainlink has partnered with other major organizations such as Intel and Google but this is the first time for a partnership with a crypto custodial crypto service. The Celsius Network is a financial platform that pays the users to deposit funds and to lend collateral to institutional funds that borrow the crypto assets to invest. Celsius will start leveraging Chainlink price feeds to calculate the interest payments because of the customers as well as for the payments to be received from borrowers.

The pricing data will provide for more auditable trail for the lenders and borrowers because it will be stored on the public blockchain. The partnership between  Chainlink and Celsius will give prospective customers improved confidence in the system and the interest in payment calculation which is often done by publicly verifiable data. Chainlink starts having access to the treasury management solution of Celsius. According to the CEO of Celsius Network Alex Mashinsky:

 “Integrating Chainlink’s industry-leading decentralized oracle technology is the key step in the continued decentralization of Celsius. Partnering with Chainlink helps solidify our mission to bring revolutionary financial services to millions around the world.’’

A huge portion of Chainlink’s Bitcoin and Ether will be deposited right in the Celsius Network to earn interest at a much higher rate. The rate for BTC and ETH is standing at 3.92 percent and 2.33 percent. Lending ETH on Aave and Compound will only yield about 0.02 percent. The rates on Celsius are usually higher than DeFi because of the higher risk related. On Compound the lender is guaranteed with their initial capital thanks to over-collateralization. Celsius is a custodial solution which means it is able to use capital money efficiently.

Celsius offers borrowing and lending in various crypto assets including stablecoins. Link is not integrated on the Celsius network but this could change with the new partnership. If this happens, LINK holders will have a new market to lend their coins to while the rates could be better than most of the DeFi platforms.