The Nexo Booster! Leverage Comes to Nexo
Nexonomics 3.0 has had quite an interesting lifespan since it started in November 2021. And while it’s time to wrap up the program, this round of Nexonomics isn’t going out without a bang. To finish up our series of platform and token upgrades, new features, promos, and more, we’d like to introduce you to a brand new product. Nexo community, meet the Nexo Booster.
The Nexo Booster!
The Nexo Booster is essentially an intuitive, yet sophisticated leverage functionality introduced into the Nexo platform. It is yet another industry-first product that allows you to amplify the purchasing power of your current holdings and boost your exposure to crypto without allocating additional capital.
The new feature works by using your existing crypto holdings and allowing you to borrow additional assets to grow your position in a certain asset. That’s right, we give you crypto credit that you can instantly use to acquire more crypto assets through a single leverage transaction flow.
- Leverage: Get between 1.25 and 3x leverage on your portfolio.
- Fully Collateralized: A permitted LTV of up to 70% gives you the security that Nexo never lends on an uncollateralized basis.
- Аvailable Currencies: BTC, ETH, AVAX, SOL, MATIC, UNI, ADA, DOT, XRP, BCH, LTC, BNB, EOS, XLM, LINK, TRX, PAXG, DOGE. * **
- Crypto Rewards: Get up to 0.5% back in crypto rewards on the booster transaction.
- Intuitive UI: Manage your position easily. Boost and borrow within the same flow in a simple process.
- $250K Maximum per transaction. You can make as many booster transactions as you want.
*The NEXO Token is excluded from the Nexo Booster, you cannot pay with or boost NEXO.
** You can use crypto, stablecoins, and more for the “Pay with” currency in the Nexo Booster, but keep in mind that you will NOT be able to select any fiat or stablecoins for your “Receive” currency.
Are Booster Transactions 100% Collateralized?
Yes! Leverage via the Nexo Booster works by collateralizing your existing holdings. Naturally, that isn’t enough collateral for the rest of a 3x leverage transaction. As collateral for the rest of your loan, Nexo immediately collateralizes the assets you are acquiring through your booster transaction, making your credit fully collateralized and bringing your LTV to 70% or under.
In effect, Nexo uses your existing crypto holdings, or such converted into your selected “Receive currency”, plus the newly-acquired asset as collateral to give you a bigger crypto-backed credit line to finance the aforementioned acquisition.
Ways You Can Use the Nexo Booster
- Boosters with two assets
Boost a cryptocurrency from 1.25x to 3x its value, and receive the boosted equivalent in another cryptocurrency.
Example: Boost BTC to get ETH. - Boosters with a single asset
Boost a cryptocurrency from 1.25x to 3x its value, and receive the boosted equivalent in the same asset.
Example: Boost BTC and get more BTC.
What Are the Fees?
Fees for the Nexo Booster are factored into your outstanding credit line balance and constitute a percentage of the value of the additional assets we purchase in your name for the Boost.
There are three different fee tiers that are determined by your LTV. You will be able to see the fee you will be charged in the “After Purchase” section before you finalize your booster transaction.
The fees are as follows:
- < 50% LTV: 1%
- 50-60% LTV: 2%
- 60-70% LTV: 3%
Upgraded Exchange Interface & The Booster
Since the Nexo Booster lives in the Exchange section of the Nexo App, our team took this as an opportunity to tie up a few loose ends on that front and give you a more intuitive experience. In relation to this, we are integrating the following change:
Instead of the Buy, Sell, and Swap tabs of the Exchange section, you will see only two tabs: Convert and Booster. The Convert Tab is where you would go to buy, sell or swap assets. The Booster option in turn is naturally where you would tap if you’re looking for a leveraged transaction.
How To Boost Your Portfolio
Boosting your portfolio is a simple and user-friendly process. You don’t need to be a seasoned investor to be able to use the service. The steps below illustrate where to locate the Nexo Booster in our app and how to find your way around the feature.
- Go to the Exchange Tab in the Nexo App and select “Booster”.
- Choose your “Pay with” currency – this is the asset you want to leverage against.
- Drag the Leverage marker to how much (1.25-3x) you want to boost your assets.
- Add your desired “Receive” currency – the asset you want to acquire – and preview your order.
- Tap “Exchange” and you’re done. The newly-acquired assets will be added to your Credit Line Wallet as collateral for your Booster transaction.
The Nexo Booster is currently only available in the Nexo App. You won’t be able to boost assets from the web version. Also, remember that you must fund your account before you can use the Nexo Booster.
Profit Projection
Beneath the “Receive” currency on the Nexo Booster screen, you’ll see the Profit Projection bar. Drag the bar back and forth to project the potential of the booster transaction you’ve set depending on how the price of your chosen asset changes in the future. This is essentially a calculator for potential future profits or losses which allows you to predict the market’s moves and their effect on your portfolio.
After Purchase
This section is right beneath the Profit Projection bar. In it, you’ll find a breakdown of your booster transaction. It displays the LTV your Credit Line will be at once you finalize your Boost, the amount you’ll borrow, and your available credit before and after the transaction is complete. It’s a useful tool to review before hitting the “Exchange” button on your leverage transaction.
Behind the Scenes: Why You Get Crypto Rewards When Using the Nexo Booster.
While the Nexo Booster is its own integrated product, in the background it uses the infrastructures of two of Nexo’s existing services: our Exchange and the Instant Crypto Credit Lines. This being the case using the Booster triggers our 0.5% Exchange Loyalty Rewards on all swaps. This is what’s happening behind the scenes:
When boosting the same asset as the initial currency you have, your existing holdings are collateralized and the rest of the needed sum is issued to you as a stablecoin loan (usually in USDT) which is then swapped via our Exchange into the “Receive” currency (also your original asset in this case). The exchange initiated at the end of this booster transaction gets 0.5% in crypto rewards.
If your boost involves two different, then the initial sum you put forward is exchanged into your “Receive” currency and you get rewards on this swap. But you also get rewards on the exchange that takes place when the stablecoin loan set to cover the rest of your booster transaction is converted into your “Receive” currency.
However, have in mind that you’ll receive crypto reward if you haven’t exceeded your Exchange Loyalty Reward limit.
Disclaimer 1: Currently excluded from Nexo’s Nexo Booster product per the Nexo Services General Terms and Conditions, the Nexo Crypto Credit General Terms and Conditions and the Nexo Exchange Service General Terms and Conditions, as amended on occasion, are citizens or residents of Bulgaria, Estonia, the United States of America, Canada and Australia, as well as of other jurisdictions subject to certain limitations or restrictions as may be applicable at times.
Disclaimer 2: Needless to say, as a leverage product, the Nexo Booster can work in both ways – it amplifies your gains when the chosen asset appreciates, yet magnifies the losses when prices are falling. In order to make an educated decision, you need to have a thorough understanding of how the Loan-to-value ratio and price-based margin calls and liquidations work. More details can be found in the Nexo Help Center. You understand and agree that you use the Nexo Booster at your own risk. You should, therefore, carefully consider whether such use is suitable for you in light of your circumstances and financial resources. If you are uncertain, please seek independent legal advice.
