The Nexo Booster offers a quick and user-friendly way to execute leveraged crypto purchases on the Nexo Exchange with up to $250,000 per single booster transaction – with no limit on the number of transactions you could make.
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 a crypto-backed credit to finance the acquisition.
You can execute a booster using a single asset or different assets.
Boosts 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.
Boosts with two assets
Boost a cryptocurrency from 1.25x to 3x its value and receive the boosted equivalent in the new cryptocurrency. Example: Boost BTC to get ETH.
The whole Booster flow is intuitive and user-friendly. All you have to do to boost your assets is:
Open the Nexo app or web platform, click on the Exchange tab and choose the ‘Booster’ option.
Select the currency you want to leverage against, the leverage percentage (from 1.25x up to 3x) and the asset you want to acquire.
Click on “Profit Projection” – a handy tool that lets you see your potential earnings by projecting possible price movements of your boosted asset.
Tap “Exchange” and you’re done. The newly-acquired assets will be added to your Credit Line Wallet as collateral for your booster transaction.
Once you repay the outstanding crypto credit, you get to retain the difference between the sale price of the assets you borrowed and your original investment.
Note: You can use crypto, stablecoins, USDx, EURx, and GBPx for the “Pay with” currency, but you cannot select any fiat or stablecoins for your “Receive” currency. The NEXO Token is excluded from the Nexo Booster altogether – you cannot pay with or receive NEXO.
Fees for the Nexo Booster are factored into your outstanding credit and constitute a percentage of the value of the additional assets we purchase in your name. There are three different fee tiers based on your Credit Line LTV after your booster transaction:
Up to 50% LTV: 1% Booster fee
50-60% LTV: 2% Booster fee
60-70% LTV: 3% Booster fee
Keep in mind that you can use the Nexo Booster even if your Credit Line LTV is above 70% – for example if you've taken out a crypto credit in stablecoins with 90% LTV.
Let's say you want to boost $1,000 worth of Ethereum and you want to purchase more ETH. This is a single asset boost but the same principles from this example apply to dual asset boosts with the difference that the asset you receive will be different than the one you start off with and there is one extra exchange transaction in the background of your boost.
In this example, let’s say you want to boost your 1,000 USD worth of ETH to the factor of 2. Here’s a breakdown of what you’d get after finalizing your boost:
Initial assets: $1,000 in ETH
Outstanding credit: $1019.99 (the extra $1,000 for the 2x boost, plus a 2% fee)
Loan-to-value: ~ 51%
Assets Collateralized from the Boost: $2,000 in ETH*
So post-boosting, you end up with $2,000 in Ethereum collateralized in your Credit Line Wallet and a credit of $1019.99 to pay off – this last sum is what you’ll accrue interest on. You can then repay the credit once ETH reaches your price target and benefit from the price growth.
Note: Needless to say, the market never moves in a single direction. Similarly, 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 fall. In order to make an educated decision, you need to have a thorough understanding of how the loan-to-value (LTV) ratio and price-based margin calls and liquidations work. For further details visit our Help Center.