Nexo Brainer #9: Nexonomics 3.0 Part 2

Nexo Brainer Episode #9 is hot off the press for you to enjoy as you chill out and relax during the holiday season. As for the theme, this time our expert Biz Dev George Manolov circles back to Nexonomics 3.0, covering the Exchange Loyalty Rewards and 0% Borrowing Rates.

Exchange Loyalty Rewards

We’ve integrated the Nexo Exchange into our platform’s Loyalty program. This allows our most loyal clients to receive rewards when making swaps on our platform.

It works like this: All clients from the Silver, Gold and Platinum tiers will receive up to 0.5% back on their exchanges on the Nexo Exchange. All you have to do is make sure you have enough NEXO Tokens in your Nexo account to be either in the Silver tier or higher.

All Exchange Loyalty Rewards are paid out in the currency you purchase during each individual swap. And remember the higher your Loyalty tier, the more rewards you receive. All rewards you get automatically go into your Savings Wallet, meaning you start earning interest on them instantly.

And now for the best part: the Exchange Loyalty Rewards are а permanent fixture on the Nexo platform, meaning you can earn rewards on all future swaps.

0% Borrowing Rates, Explained

Speaking of permanent features, our Instant Crypto Credit Lines has a new addition to it too: 0% Borrowing Rates. With this new option, Gold and Platinum tier clients can borrow at interest rates of just 1.9% and 0%, respectively, by maintaining an LTV lower than 20%.

Our low-cost and zero-cost credit lines are available under the same flexible terms as our regular credit lines, which means you can go between the 0-1.9% rates and our standard interest whenever you want. So if you need a larger withdrawal, you can still borrow at an LTV above 20% and get interest starting from just 6.9% APR.

To make sure we’ve covered all the bases for 0% Borrowing Rates, we put together a brief Q&A on the subject:

Can I still get the low-cost and zero-cost rates if I already have an existing credit line?

Yes, you absolutely can. Just make sure your credit line’s LTV is under 20% and that you’re either in the Gold or Platinum Loyalty tiers, and you’ll automatically get our new rates. If you’re a Gold or Platinum client and you’ve borrowed at a higher LTV than 20%, just add some extra collateral to your Credit Line Wallet to get our 0-1.9% rates.

What rates will I get if I use the NEXO Token as collateral since its permitted LTV is already under 20%?

If you’re in the Platinum tier, you’ll automatically get 0% APR. If you’re in the Gold tier, you’ll automatically get 1.9% APR.

Do zero-cost loans impact the repayments in any way?

No, you can still repay your credit lines using any supported asset at any time.

What happens if the value of my NEXO Tokens fluctuates and I move between Loyalty tiers?

Since interest on your credit line is accrued daily, if, you’re a Platinum client, accruing 0% interest each day and the value of your NEXO Tokens drops enough to place you in the Gold tier, you will start accruing interest at 1.9%, provided that your LTV remains under 20%. However, if a day later, the value of your NEXO Tokens rises or if you add more tokens to your account to get you back up to the Platinum tier, you’ll start getting the 0% rates from the next day.

Simply put, if your Loyalty tier drops, you’ll start accruing interest at the rate available for your new tier. The good news is that you’re free to go back and forth between tiers at any time, so you’re in control of your rates at all times, just remember to keep an eye out for market volatility.

What happens to my credit line APR if the value of my collateral changes and my LTV goes from under 20% to over or vice versa? What happens if I decide to repay a part of my loan and lower my LTV, or if I take out more credit and my LTV rises?

If you’re in the Platinum tier and your collateral’s value changes, moving your LTV from under 20% to over 20%, you will accrue interest at 6.9% until you either add more assets to your credit line wallet or your collateral appreciates in value enough to get your LTV back under 20%. Once your LTV is under 20% again, you will start accruing interest at 0% APR on the next day. It’s the same principle for the Gold tier, but with the relevant Gold rates.

Similarly, if your collateral grows enough to get your LTV under 20% and you’re in either the Gold or Platinum tier, you’ll start benefiting from our low-cost and zero-cost interest rates.

Can I still borrow at an LTV higher than 20%?

Yes, your borrowing rates will just be the standard Nexo rates that start from 6.9% for Platinum clients and go up for the lower tiers.

If you’re new to the Nexo Brainer, or if you missed any of the previous episodes, you can catch up here. Also, remember to subscribe to our YouTube channel to be the first to know when a new installment of the Nexo Brainer comes out.

Nexo Brainer, hosted by our Business Developer George Manolov, is designed to keep you up to date on the latest Nexo features. In each episode, our expert team shares strategies on how to use our products to your best advantage, so make sure you check out the videos.