Cryptocurrency lending and borrowing platform Celsius announced that it would be implementing compounding interest on cryptocurrencies deposited in its wallet, starting Feb. 1. The annunciation came with a number of other updates in a Twitter AMA (enquire me anything) with founder Alex Mashinsky on Jan. 22.

Compounding interest was a feature requested by the Celsius customs, and brings the community-driven app in line with venture capital-backed competitors similar BlockFi, and traditional fiscal services. In proclamation sent to Cointelegraph the firm stated:

"You asked for information technology, and we delivered! Starting February 1, involvement income on crypto deposits will officially exist COMPOUNDING! That's right - all the coins in your wallet will at present exist earning interest on interest!"

Other changes announced in the AMA covered revamped loyalty tiers, the ability to lend confronting EOS tokens, and a partnership with Due south Korean cryptocurrency substitution, Korbit.

Users tin also at present earn upwardly to 8.1% April on their first deposited Bitcoin (BTC).

Fastest growing crypto-lender

Every bit Cointelegraph reported lin August 2022, Celsius Network became the fastest growing crypto-lender with $2.2 billion in coin loan origination. Past November, the total loan amount had almost doubled again, reaching $4.25 billion.

Crypto-lending platforms go on to abound in popularity, giving holders the opportunity to earn interest on their deposited assets, while also enabling the employ of tokens every bit collateral against cash or stablecoin loans.

Celsius offers varying interest rates on deposits of a wide range of popular cryptocurrencies, including Bitcoin, Ether (ETH) and Litecoin (LTC), along with coins such as Bitcoin Gold (BTG), Dash (Dash), ZCash (ZEC) and EOS. Higher interest rates of upward to ten% are also bachelor on a selection of stablecoins.