Advantages of NEXO
Solving lending issues is a significant advancement for the DeFi sector. Let’s now explore the specific advantages of participating in Nexo and its NEXO token.
Interest discounts
It’s important to note that owning NEXO comes with certain benefits, such as discounts on interest. This applies to borrowers and can make a significant difference, as interest is a crucial aspect of loans, whether centralized or decentralized. In simple terms, if you already own NEXO, your rate of return will be slightly lower, which is an important factor to consider.
Earn interest
If you’re a lender, you can earn interest by lending out your coins and tokens. According to the project’s website, you can earn up to 17% per annum on your cryptocurrency as well as EURx, GBPx, and USDx, with unique daily payouts. Furthermore, your funds are backed by a $375 million fund, and you can add or withdraw money at any time.
Receive dividends
Nexo offers dividends to its token holders as a reward for purchasing and storing their cryptocurrency in Nexo wallets. These dividends come from Nexo’s profits and show appreciation to those who support its project.
Nexo Card
Nexo offers its own crypto card called the Nexo Card. The company claims it is the only card that allows you to spend the value of your digital assets without needing to sell them. It provides instant cashback on all purchases and offers flexible redemption options. The card is accepted by more than 40 million merchants worldwide, and you receive 2% cashback on your payments. The merchants receive payments in their local currency without any monthly, annual, or currency exchange fees.
How does NEXO work?
Nexo is the world’s first provider of instant loans backed by digital coins. It aims to solve the problem of inefficiency that plagues the lending market. It does this by completely automating the lending process, using only smart contracts and an oracle on the Ethereum network to manage loans. Essentially, once you transfer your coins to a wallet controlled by Nexo, the oracle will issue a loan and the borrower will receive the funds instantly. When they make a deposit to repay the loan, the oracle returns that money and records the transaction on the blockchain. The process is fast, efficient, and cost-effective, and the project offers many benefits that make it more than worth using.
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