Reminder that Celcius is a centralized entity, therefore not really in line with "decentralized" and "be your own bank." It's quite possible to do smart contract collateralized lending, however not yet common at all. Celcius was using user funds to get crazy yields to further entice users to join their ever growing pyramid money pile.<br><br>Great content on the subject by the way!,(reply>), amazing how many don't comprehend why banks give such low interest. the banks have expenses, they have to cover loans that default, the bank needs funds to loan. this means most of the interest is used up enabling the bank to continue its business and grow.,(reply>), @Swatdennis permissionless, as in no central authority that can prevent a smart contract from operating. Solana or celcius, are centralized since they're at the control panel and can "shut down" their operations, their decisions are not based on decentralized consensus<br><br>Being trackable doesn't mean it isn't decentralized. Bitcoin has decentralized consensus, yet is traceable. Monero has decentralized consensus, yet isn't traceable. Banks internal ledgers are a centralized consensus, yet aren't traceable. Traceability has nothing to do with centralization or decentralization.,(reply>), What do you mean "decentralized"? <br>Every flipping Eth exchange is completely and utterly trackable and thus, centralized via the permanent ledger. There's nothing anonymous or decentralized about it,(reply>), @Ahmedo yup, this seems pretty catastrophic. I think in the end it will be fine for most Celsius users. However, nearly everyone will permanently lose trust in the "project"<br><br>Very likely Celsius will be bailed out by some super wealthy character or crypto institution so they can continue to make money on users putting funds in to continue to generate yield blah blah yeah... I think the circus will continue,(reply>), It is but super risky to maintain because you need to keep putting up collateral and most people were using Celsius to earn interest not take out loans. <br><br>So the problem was when people wanted to withdraw Celsius’s didn’t have enough reserves because they lent most of it without proper mitigations so that’s a massive problem, and it’s also not like a traditional where you can take an emergency loan from the fed to payout people it’s crypto so they basically screwed