There is no stopping us when it comes to serving the best interests of our community. Step in our June AMA session where Nexo Co-Founder and Managing Partner Antoni Trenchev and his debut AMA guest Nexo Product Manager Dimitar Bratovanov discuss all-things crypto interest.
The two answer community questions, looking back to the history of interest-bearing accounts, how #AllYouCanEarn fits in today’s macro environment and what would yield generation look like on Nexo in the future? Pumped up? You should be, so read on to recap or watch the full video.
The rate increases represent an adjustment to the current macroeconomic factors and reflect the increased interest rates for the Borrow product, in line with Nexo’s robust business model of over-collateralized lending.
Nexo’s impeccable track record exemplifies the platform’s security and commitment to sustainability the clearest.
The strong demand for stablecoins in developing countries where inflation is surging illustrate how Nexo’s Earn Interest and Borrow products complement each other to create a holistic suite along with the Nexo Card and exchange/trading services.
Q (08:26): Should we expect an increase in interest rates for other crypto assets on the platform?
Antoni: The short answer is yes, of course. First, we raised rates for stablecoins, which has to do with a couple of things. We briefly touched upon the changing interest rate environment everywhere on a macro level – whether it's the ECB or the Fed, just about everyone has been raising rates. The crypto space as such is not isolated. We like to think of Bitcoin as an uncorrelated asset and crypto as a class, but the macroeconomic environment at the end of the day has an effect, so when rates are rising, there is naturally an extension in crypto.
Number two is the fact that since our announced gradual departure from the USA, we have diversified in geographies and countries where fiat currencies are not as stable as dollars. You see a flight from their native currencies to USD or EUR, which comes in the form of fiat X and stablecoins on the Nexo platform.
And then thirdly, I would highlight the fact that, prior to us raising rates on the Earn Interest product, we raised rates on the Borrow product, so both sides of the book move almost in interlocked steps with one another.
Q (12:02): Is the “#AllYouCanEarn” a new #Nexo investment product and how it's different from other earn interest products?
Dimitar: Both of them are related to one another – while the Earn Interest product is the actual product where we increased the rates for our stablecoins, #AllYouCanEarn is the marketing campaign that we used to introduce the change. We wanted to do something different, so we went with a regional marketing approach for that campaign and we tried to be a little bit more creative with the visuals that you can see across social media. The idea behind it was to simply engage better with our local communities and to establish a better connection with our users.
The main goal of that campaign was actually our first step into a deeper global expansion into various markets and seeing different regions across the world.
Q (18:52): Can you explain a little bit about Nexo’s infrastructure technology?
Dimitar: I'll stick to three points. I'm going to start with our custody infrastructure, because what we've done is we've partnered with the leaders in custody, including Ledger Vault, Bakkt and Fireblocks, among others, to ensure secure storage and what happens with those integrations is that these partners and assets are spread out globally. What Nexo provides for the users is actually a combined view, that you get for your assets into one space.
Secondly, with respect to access to those assets, we've added whitelisting. This brings an extra layer of security, enabling our users to save addresses they trust and avoid the costly mistake of transferring funds to misspelled addresses.
And the third point – Nexo is a cloud-based company. If there's an issue with one of the servers, the remaining servers will continue operating, which enables us to provide you with that 24/7 service of great Nexo products and secure access to your funding.
Antoni: Just to bring all of those points together and to what I began with – the track record. Nexo has never experienced any serious downtime. Apart from reading about the infrastructure or the security of any company, look at the track record, which manifests truly what the infrastructure of that company and the team's abilities are.