What Is the Nexo Ecosystem?
NEXO is the official token of the Nexo platform, a cryptocurrency exchange and lending platform that supports both ERC-20 and BEP-2. The platform rewards users who hold NEXO in their accounts with a range of incentives such as increased yields on their digital assets, free cryptocurrency rewards on card purchases, and reduced borrowing rates on their crypto-backed credit lines.
Basics
Since its inception in 2018, Nexo has been at the forefront of the crypto lending industry, pioneering the concept of crypto credit lines. Today, the Nexo platform has evolved into a comprehensive crypto finance ecosystem that enables users to buy, sell, trade, and borrow against their cryptocurrencies. The platform's latest offering is the Nexo Card, which is the first crypto-backed card in the world.
What Is the Nexo Ecosystem?
With over four million clients worldwide, Nexo has experienced a significant surge in numbers since 2020, following the release of its Earn product. This addition to the platform enabled users to earn interest on their crypto assets, which attracted new crypto enthusiasts seeking passive income opportunities.
The Nexo ecosystem offers a comprehensive solution for all things crypto. Novice users can easily purchase their first crypto and begin earning daily interest, while seasoned users can leverage their assets for cash to use for everyday expenses or to invest in additional cryptocurrencies.
Nexo’s Crypto Credit Line
Clients can use their cryptocurrency holdings as collateral to borrow cash or stablecoins through Nexo's Instant Crypto Credit Line. Approval and funds are available within 24 hours, and there are no origination fees or monthly repayments required. Borrowing amounts range from $50 to $2M and can be paid off in over 40 fiat currencies, stablecoins, or a combination of both.
Opening an Instant Crypto Credit Line is simple and requires users to use their digital assets as collateral. Depending on their Loyalty tier and the ratio between their NEXO tokens and other crypto holdings, clients can borrow at a maximum rate of 13.9% APR. To help clients manage their credit lines effectively, Nexo employs an algorithm that includes margin calls, automatic collateral transfers to maintain acceptable loan-to-value ratios, and automatic repayments in the event of market depreciation.
Nexo’s NFT Lending Platform
Nexo offers users the ability to borrow stablecoins, ETH, and other cryptocurrencies by leveraging their Bored Apes and CryptoPunks NFTs as collateral. Borrowing against NFTs provides instant liquidity without requiring clients to sell their digital assets. Users can borrow up to 20% of their NFT's value and use the loan to spend or reinvest. In addition to these services, Nexo also provides OTC services and a dedicated account manager to assist users throughout the borrowing process.
Nexo’s Exchange
The Nexo Exchange has expanded its offerings over the years to include a range of cryptocurrencies, such as BTC, ETH, BNB, AVAX, and NFT, as well as metaverse tokens like APE and MANA. The exchange provides users with various options, including buying crypto with credit or debit cards, direct swaps of over 300 crypto pairs, including 140 rare ones, and the Nexo Booster, which offers simplified 1.25x to 3.00x leverage options. This allows users to purchase more of their preferred cryptocurrencies by funding the transaction with a crypto-backed loan.
Nexo’s Crypto Card
Nexo launched its crypto credit card in April 2022, which enables users to spend the value of their cryptocurrency without actually selling it. Users can borrow fiat on their everyday purchases while using their crypto holdings as security for repayment. The Nexo Card is accepted anywhere Mastercard is accepted and supports Bitcoin, Ethereum, and 40 other cryptocurrencies as collateral. Users can earn rewards of up to 2% back in NEXO tokens or 0.5% back in Bitcoin on every purchase or ATM withdrawal. There are no monthly, annual, or inactivity fees, and no minimum monthly repayments are required.
What Is the NEXO Token?
Nexo introduced the first-ever compliant, asset-backed token with utility features that paid dividends in 2018. Since then, the token has transitioned to provide daily interest to Nexo users, offering lower borrowing rates, higher interest rates, and free withdrawals on their platform. The tiered Loyalty Program determines the benefits of holding NEXO tokens, based on the percentage of tokens in the individual's portfolio. For instance, a Nexo user holding 10% of their portfolio in NEXO will qualify for the Platinum tier. This level provides up to 17% interest rates for most assets and five monthly crypto withdrawals at no cost. As of May 2022, the maximum interest rate on the platform is 36% on AXS.
Over the last two years, Nexo has been conducting a Buyback program, repurchasing its native token from the open market. The objective of the program is to increase the token's liquidity and reduce price volatility. The NEXO Token has a hard cap of 525 million tokens, and its supply is limited.
Conclusion
With its comprehensive approach, the Nexo ecosystem has gained popularity. The platform’s automatic earning feature and user-friendly crypto-backed loan option have contributed to this. Furthermore, holding NEXO Tokens increases the benefits users can receive from the platform. With the recent launch of the Nexo Card, the Nexo community is expected to grow further.