NEXO crypto review. Credits and dividends for everyone
The NEXO project is being developed by a large fintech company and has quite significant strategic partners from the crypto industry. The following is an NEXO crypto review.
What is NEXO crypto coin
NEXO is a platform that aims to provide credit services using cryptocurrencies as collateral. The NEXO platform combines the best of the world of traditional finance and decentralized cryptocurrencies. The system is set up quite simply. Borrowers block cryptocurrency as collateral, and in exchange they receive fiat, or stablecoins.
The funds are instantly sent to a bank card, or a crypto wallet if stablecoins are requested. In case of market volatility, the limit of available credit funds will be automatically adjusted depending on changes in NEXO crypto price. Credits taken, can easily be repaid with cryptocurrency, fiat money, or NEXO tokens.
In addition to loans, the platform gives you the opportunity to earn passive income – 8% per annum in dollars on deposit. Which is much higher than the most generous bank offers. Funds that users leave as a deposit at interest, are used to make loans to other customers.
How does NEXO crypto currency cope with the high volatility of cryptocurrencies?
It’s no secret that cryptocurrencies are extremely volatile; daily price fluctuations can reach 30%, and in a month the price can change several times. To ensure the stable operation of the credit system, NEXO crypto coin uses Loan-to-value ratio, to assess the risks; it is called LTV for short.
NEXO crypto currency uses a special algorithm called NEXO Oracle to determine the LTV ratio of borrowers. Given the high volatility of cryptocurrencies, the LTV ratio will often be – more than 50%.
NEXO Oracle will also fully track and regulate all aspects of the platform, including asset allocation, detailed analytics, wallet maintenance and more. Loan disbursement and repayment is done directly by the borrower, through the user interface. The user interface is available both from a PC as a web version and from mobile devices through an app.
Why NEXO crypto currency is needed
One of the incentives to buy and hold tokens is to pay dividends to holders. 30% of all profits made by the company are sent to a dividend pool. Which is then distributed to token holders. Dividend payments are currently made in ether (ETH), with a frequency of once a quarter.
Throughout the life of the platform since 2018, token holders have shared $3,300,000 in profits as dividends. The annual yield is about 13%.
The dividends are divided into two halves, the first half is the base dividend, it is paid only based on exactly how many tokens you hold, the more – the higher the payout accordingly. The other 50% is the so-called loyal dividend, which considers the amount of time you hold tokens. The longer you hold your tokens, the bigger the payout will be.
In addition to being a source of passive income in the form of dividends, tokens can be used to repay loans. The incentive to use tokens, will be the reduced interest on the loans. This is similar to bank loans, which offer lower interest rates, or a discount, when you set up auto-pay.
If you pay interest on tokens, the loan rate will be 5.9% per annum. If you pay with fiat or other cryptocurrency, the loan will cost 11.9% per annum. Thus, the benefit when using it is quite tangible.
Where to buy NEXO crypto? Today tokens are available on all leading exchanges. The company’s management conducts a fully transparent legal business and complies with all laws. The project team, more than 10 years working in the field of FinTech. Find all the information about them; you can google the name of the company – Credissimo; they are the official owners of the lending platform.
It should be understood that this is a fully centralized service. This is not necessarily a bad thing; there are pluses, but we should not forget about the minuses of centralization. In turn, DeFi deployed on the Ethereum blockchain works almost autonomously, that is, by itself. Accordingly, there are no limits, checks, restrictions, etc. NEXO crypto news today is positive, which suggests that in the future everyone will still be able to make money from this project. So the NEXO crypto buy decision can be considered reasonable.