Changes to Earn Crypto Interest Rates & Balance Limits Coming in July

3 min read
New Features

In line with our commitment to ensuring the robustness of our business and the sustainability of our services, and due to the overall environment currently surrounding interest rates, we are introducing a few changes to our Earn Crypto Interest product:

On July 1, 2022, we are changing some of the yields and balance limits* for the following assets: Bitcoin (BTC), Ethereum (ETH), Chainlink (LINK), Paxos Gold (PAXG), stablecoins (USDT, USDC, TUSD, DAI, USDP), and the NEXO Token.

For all 23 other assets supported by Nexo, you will continue to receive the existing industry-leading rates.

*What Are Balance Limits
Some assets on the Nexo platform have balance limits for the Earn Crypto Interest product. This means that for each Loyalty tier for these assets, there are two yields you can earn. The rate you receive is determined by the USD value of your holdings (balance) in the relevant asset, specifically, whether you are above or below the relevant balance limit.

A Summary of the Changes

The changes that will come into effect on July 1, 2022 fall into the four categories listed in this section. The concrete rates and balance limits coming from these changes are outlined in the “Details” section below.

  • BTC & LINK: We are lowering the balance limits for BTC and LINK holdings, raising the yields for clients with balances above these thresholds, and lowering the rates for holdings under the threshold.
  • ETH & All Stablecoins: We are introducing balance limits and, consequently, new rates that apply to clients with holdings in these assets above the new thresholds. Rates for ETH and stablecoin balances under the new limits will remain the same.
  • PAXG: We are introducing balance limits and, new rates that apply to clients with holdings in this asset above the new thresholds. Rates for PAXG under the new balance limits will also change.
  • NEXO Tokens: The maximum rates for Fixed Terms will stay 12% for a 12-month term and 9% for a three-month term. FLEX rates and interest on NEXO used as collateral for our Instant Crypto Credit Lines will now be 4%. To find out how to get the most out of the NEXO Token, check out our dedicated token page.

The Details

Balance limits and updated yields for all the aforementioned assets, listed by your corresponding Loyalty tier:

You can use our earn calculator to try various combinations of cryptocurrencies and terms to see how much you would be earning on your assets.

A Note from Nexo About the Changes

Despite the upcoming changes to Еarn Crypto Interest, for many of the assets we support, Nexo’s yields continue to be among the highest in the industry. The underlying sustainability behind our model allows us to maintain stability even in the present circumstances and we look forward to continuing to provide you with high yields on your crypto in the long run. As for the assets that will, unfortunately, receive slightly lower rates, the Nexo team has worked towards ways to help balance this out:

First, you’ll notice we’re now offering higher yields for larger balances of BTC and LINK, and making these rates more accessible by lowering the corresponding balance limits. This detail also reduces the pre-existing difference in rates for clients below and above our new balance limits wherein clients with large balances were earning significantly less. Our effort to minimize this gap improves fairness in terms of what clients with big and small portfolios can earn.

Introducing balance limits for ETH, stablecoins, and PAXG, also makes it possible for us to still offer our pre-existing maximum rates on these coins even after July 1, 2022 by staying beneath the balance thresholds and using our Fixed Terms. Implementing balance limits for these assets and Fixed Terms mechanisms for our native NEXO Token is a sustainable solution for us to maintain our top rates, rather than simply slashing our yields altogether.

We are mindful that the above will not completely neutralize the effects of the rate changes for all clients. However, we are making our best effort to maintain the highest possible yields in a secure manner given current conditions – a level of compromise and compensation that reflects our care for our loyal users.

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