OPportunities Ahead: Optimism (OP) is on Nexo
A dose of optimism is the best remedy for bearish days. Knowing this, we’ve been eager to bring you the OP token. As of today, you can buy, exchange and borrow against OP on Nexo. So, whether you’re team “glass half full” or “glass half empty,” Optimism is here!
- Buy: Buy OP with a card in seconds and get up to 0.5% back. Now with 0% fees.¹
- Exchange: Swap OP on the Nexo Exchange and get up to 0.5% in rewards. Available in 6 pairs.
- Borrow: Borrow against your OP at rates as low as 0% APR.
- Spend: Use your OP as collateral and spend its value with the Nexo Card. Now with 2% back in rewards, no matter your Loyalty tier.
- Boost: Leverage your current portfolio and exchange up to 3x more OP.
What is Optimism (OP)?
Optimism is a layer 2 scaling solution for Ethereum. The name stems from the technology behind it called Optimistic rollups. It functions by compressing large amounts of transactional data assumed to be valid until proven otherwise. This assumption might be optimistic, yet still, validators check the data and submit a fraud proof if they find inaccuracies. These transactions happen on the Optimism chain while the data itself is posted on the Ethereum mainnet, where validation occurs.
How Did Optimism Become a Top Layer 2 Solution?
Imagine your corner store has everything you need at a fair price and you get to skip the queues at the big supermarket. This is what Optimism is like compared to Ethereum. The layer 2 solution supports mainnet dApps and is capable of executing smart contracts. Transactions cost way less than on the mainnet while still benefiting from its security. The greater number of transactions the system can process helps scale Ethereum with more users moving to the chain. Last but not least, the chain provides top-tier developer and user experience.
However, all this would mean little without adoption. A month after its Alpha mainnet launch in January 2021, Optimism secured a $25M investment by Andreessen Horowitz. Since then, as often happens with builders, they have continued building. Fast forward to the end of April 2022 and the Optimism chain reached its all-time high in TVL, closing at a little over $500M. The culmination happened on May 31 when Optimism launched its OP token. A total of 214 million OP tokens were airdropped to 231,000 addresses. If you didn't qualify for the airdrop, at Nexo it's easy to buy your first OP tokens.
Buy Optimism (OP) on Nexo
Layer 2 tokens have been picking up stream and gaining exposure to such a project is easy on Nexo. After you complete your registration, it takes seconds to buy Optimism with a card. Each transaction earns you up to 0.5% in crypto rewards back and is just as instant as the ones on the chain itself.
Buy OP with 0% Fees: Layer 2’s are big on cutting costs. If you’re a big on that concept too, buying OP on Nexo with card now comes with 0% fees. Simply, select debit or credit card as a payment option and benefit from the limited-time offer.
Exchange Optimism (OP) and Get Rewards
If you’re playing it safe at the moment and you want to exchange some of your current holdings for fresh OP tokens, we have six available pairs. Every swap on our Exchange earns you up to 0.5% in crypto rewards2.
Borrow Against Your Crypto to Buy Optimism (OP)
Are you optimistic about the future of crypto? Then the last thing you would want to do is sell. On Nexo, you can borrow against your existing assets at just 0% APR to get cash or stablecoins. If you are into new tokens, you can use the newly acquired funds to buy more Optimism tokens. You can do this in one quick action and triple your exposure to OP at the same time with our Nexo Booster. It allows instant execution of a borrow and exchange transaction, allowing you to buy three times more Optimism. The acquisition is financed through a crypto-backed credit line.
Spend the Value of Your OP Without Selling It with the Nexo Card
Let’s say you’ve acquired Optimism on Nexo through a quick purchase with a card or the Nexo Booster. Now, what can you do with it? HODLing is always a good idea, but spending against it is even better. The Nexo Card encourages you to keep your OP tokens while giving you liquidity against it. You use your tokens as collateral and receive funding for your everyday purchases. The credit line can utilize just your OP tokens or a combination of multiple assets as collateral. It allows you to spend up to 90% of the value of your crypto without selling it. Other benefits include:
- Up to 2% in Crypto Rewards: Get instant crypto rewards on all transactions, paid out in BTC or NEXO.
- Credit Line from 0% APR: Purchases made with the card are financed by a crypto-backed credit line.3
- No Minimum Repayments: Spend at will and repay whenever you decide. There are no hidden fees.
- Tax Optimization: Spending without selling your crypto doesn’t trigger a taxable event.
What’s the Future of Optimism and Layer 2 Solutions?
With the upcoming Merge and the expected increase in efficiency of Ethereum, layer 2 solutions are looking to improve alongside it. As crypto adoption increases, the demand for Ethereum is also expected to grow and with that, the popularity of layer 2’s where the majority of smaller transactions will continue to happen.If you are bullish on Ethereum and layer 2 projects Optimism should be on your list. We know they are on ours as we continue to add promising projects to the Nexo platform.
¹The “0% fees” offer is not available for citizens of the US.
²The amount of free crypto you receive depends on your Loyalty tier. The higher your tier, the more crypto you get. Ex. Platinum users get the full 0.5% of their original transaction in crypto rewards.
³Nexo’s zero-cost credit is available to eligible Nexo clients who maintain an LTV of 20% or below.