The CEO and founder of Celsius, Alex Mashinsky, tells the rationale 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 begin with Celsius using Chainlink’s crypto price oracles, after which Celsius will move transactions on-chain for greater transparency. Celsius will provide treasury service to Chainlink, managing “several million dollars” worth of cryptocurrency.
.@CelsiusNetwork, an industry leader with $600MM+ in assets under management, will be relying on Chainlink's decentralized price oracles for their core offering's interest rate calculation. Providing more decentralization and transparency for their users. — Chainlink – Official Channel (@chainlink) March 30, 2020
Mashinky stated that his company is paying out weekly interest on their deposits to the partner while Chainlink is able “to borrow dollars when they need them so they do not have to sell coins”.
Chainlink’s CEO Sergey Nazarov tells that the partnership is important to him personally, as 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.”
According to Mashinsky, not a single institutional client of Celsius defaulted during the recent market meltdown. Perhaps, further decentralization of its technological stack will make the company even more robust.