Celsius ‘CEO and founder, Alex Mashinsky, explained said the reasoning behind the partnership:
“Celsius wants to be more transparent and more decentralized and that is the main driver for partnering with Chainlink.”
The partnership will start with Celsius using the crypto-price oracles from Chailink, after which Celsius will move on-chain transactions for greater transparency.
Celsius will provide Chainlink a treasury service, managing cryptocurrency worth “several million dollars.” Mashinky said his company pays the partner weekly interest on their deposits, while Chainlink can “borrow dollars when they need them so they do not have to sell coins”.
A Progressive Decentralization
Sergey Nazarov, CEO of Chainlink, said the partnership is important to him personally, since it proves that incremental decentralization works:
“I think many teams could benefit from reexamining an incremental/gradual approach to decentralizing their financial product/application, people might think decentralization is a binary decision, because that’s what it looked like when they started building their application. They might think “either I go fully decentralized or fully centralized”, they don’t always consider a middle path where they can gradually decentralize their application.”
Not one single Celsius institutional client defaulted during the recent market meltdown, according to Mashinsky. Maybe further decentralization of its technology stack will make the firm even more robust.
Cryptolydian reported earlier that, Blockchain-based Celsius Network, which provides loans and interest income in BTC and ETH, has reported profitability after just 18 months of starting service.
The platform allows users to borrow or lend crypto assets. It has announced contributing 80 percent of its revenues to the depositor community as a weekly interest income.
While giving no further information, Celsius stated that it became profitable at the beginning of 2020. It generates $1.5 million in monthly revenues, expecting to record robust revenues for March and the first quarter of 2020.