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What Is NEXO (NEXO)? | Binance Academy

What Is NEXO (NEXO)? | Binance Academy


TL;DR

The NEXO Token (NEXO) is the native token of the Nexo cryptocurrency alternate and lending platform, suitable with each ERC-20 and BEP-2. Users holding NEXO of their accounts on the Nexo platform get many incentives, together with increased yields on their digital property, free crypto rewards on card purchases, and borrowing fee reductions on crypto-backed credit score strains.

Introduction

Nexo began out in 2018 as a crypto lending platform and is taken into account the pioneer of crypto credit score strains. Nowadays, the Nexo platform is a complete crypto finance ecosystem the place customers can purchase, promote, commerce, and borrow towards their cryptocurrencies. The newest addition to the suite is the Nexo Card – the world’s first crypto-backed card.

What is the Nexo ecosystem?

Nexo has over 4 million purchasers worldwide, with numbers rising drastically in 2020 with the discharge of their Earn product. The addition allowed customers of the platform to obtain curiosity on their crypto property. This transfer attracted many new crypto lovers who weren’t essentially on the lookout for loans however needed to make use of their crypto to earn them passive earnings. 

The Nexo ecosystem is an all-around answer for the whole lot crypto. Beginner customers can purchase their first crypto in a couple of clicks and begin incomes compounding day by day curiosity routinely, whereas skilled customers can borrow money to make use of for his or her on a regular basis bills or to reinvest in additional crypto. 

Instant Crypto Credit Line

Nexo permits purchasers to open an Instant Crypto Credit Line and borrow money or stablecoins by using their cryptocurrency holdings as collateral. Users can borrow from $50 to $2M with on the spot approval, no origination charges, and no month-to-month repayments, whereas funds grow to be accessible inside 24 hours. It will be partially or totally paid off in over 40 fiat currencies, stablecoins (USDT or USDC), or a mix of each crypto and fiat currencies.

To open an Instant Crypto Credit Line, all customers must do is use their cryptocurrency holdings as safety for compensation. This will permit them to borrow a most of 13.9% APR, relying on their Loyalty tier and the ratio between the NEXO tokens and different crypto holdings of their portfolios. Should the digital property serving as collateral begin to depreciate in market circumstances and the loan-to-value ratio will increase, Nexo has employed an algorithm to assist purchasers keep on prime of their Instant Crypto Credit Lines and handle them effortlessly. These embrace margin calls, automated collateral switch to keep up an appropriate loan-to-value ratio, and automated repayments.

NFT Lending Desk

Users may also borrow stablecoins, ETH, and different digital currencies towards their Bored Apes and CryptoPunks NFTs. As with Nexo’s credit score strains, this on the spot liquidity doesn’t require promoting the digital property. Users can borrow as much as 20% of the worth of their NFTs and spend or reinvest the load. As a part of Nexo’s OTC companies, customers have a devoted account supervisor to help them all through the method.

The Nexo Exchange

Over the years, Nexo has additionally developed their cryptocurrency alternate. It hosts widespread cash like BTC and ETH, Layer 1 tokens like BNB, AVAX, and NFT and metaverse tokens like APE and MANA. Users of the Nexo Exchange can purchase crypto with credit score or debit playing cards and straight swap 300+ crypto pairs, together with 140 uncommon ones. The alternate additionally has a simplified 1.25x to three.00x leverage possibility. It is called the Nexo Booster and permits customers to purchase extra of their favourite cryptocurrencies by funding the transaction with a crypto-backed mortgage.

The Nexo Card

In April 2022, Nexo formally launched their crypto bank card. It permits customers to spend the worth of their crypto with out truly promoting it. It works by routinely borrowing fiat on on a regular basis purchases whereas utilizing crypto as safety for compensation.

The Nexo Card can be utilized anyplace Mastercard is accepted. Card house owners can use their Bitcoin, Ethereum, or 40 different cryptocurrencies as collateral to again the credit score granted. This offers them fiat towards their crypto upon every buy. They may also earn rewards on each buy or ATM withdrawal, which will likely be paid out in Bitcoin (as much as 0.5% again) or the NEXO tokens (as much as 2% again). Nexo doesn’t require minimal month-to-month repayments and doesn’t acquire month-to-month, annual, or inactivity charges.

What is the NEXO Token?

In 2018, Nexo issued and distributed the world’s first compliant, dividend-paying, asset-backed token with utility options. Since the evolution from dividends to day by day curiosity on NEXO, the token has continued to offer utility to Nexo customers within the type of increased rates of interest, decrease borrowing charges, and free withdrawals on their platform. The actual advantages are decided by a tier-based Loyalty Program. The tiers rely on what share of a person portfolio is held in NEXO Tokens. For instance, if a Nexo consumer holds 10% of their portfolio in NEXO, they are going to be within the Platinum tier, which qualifies them for rates of interest for many property of as much as 17% and 5 free crypto withdrawals per thirty days. As of May 2022, the utmost rate of interest on the platform is 36% on AXS.

For the previous two years, as a part of the tokenomics overhaul of NEXO, the corporate has been repurchasing its native token from the open market. This so-called Buyback program is aimed toward boosting the token’s liquidity, thus lowering value volatility. There’s a restricted provide of the NEXO Token with a tough cap of 525 million NEXO Tokens.

How to purchase NEXO on Binance? 

You can purchase the NEXO Token (NEXO) on cryptocurrency exchanges like Binance.  

1. Log in to your Binance account and click on [Trade]. Select both the basic or superior buying and selling mode to start out. 

2. Type “NEXO” within the search bar to see the accessible buying and selling pairs. We will use NEXO/BUSD for example. 

3. Go to the [Spot] field and enter the quantity of NEXO you need to purchase. In this instance, we are going to use a Market order. Click [Buy NEXO] to verify your order, and the bought NEXO will likely be credited to your Spot Wallet.

How to get began on Nexo?

Creating an account on Nexo is straightforward and takes round Three minutes. To begin, click on on the button on the prime proper nook on www.nexo.io.

This will take you to the Nexo platform, the place it’s essential to enter your e-mail deal with and password. After verification, it’s essential to fill in your account particulars and undergo a fast KYC.

Closing ideas

The Nexo ecosystem has risen in reputation with the simplicity of its all-in-one answer. Their incomes product is automated and taking a crypto-backed mortgage is intuitive. By holding NEXO Tokens, customers can get extra from their platform, and with the discharge of the Nexo Card, an increasing number of individuals will be a part of the Nexo neighborhood.



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