Nexo Lending platform is a blockchain-based platform that provides crypto-backed loans to its customers. These Nexo loans can be availed by keeping your cryptocurrencies as collateral with the Nexo platform.The innovative model of Nexo brings to the crypto community the best of both worlds - retaining 100% ownership of their digital assets while having immediate access to cash. The Instant Cryptobacked Loans are an automatic, flexible and cost-efficient way of obtaining liquidity that is secured by the value of the client’s digital assets. The whole process is completed in just a few simple clicks. No hidden fees, no capital gains taxes, no credit checks. Transparency is guaranteed through the use of blockchain technology, smart contracts and algorithmic processes executed by the Nexo Oracle. Nexo is a project founded by Credissmo, which is a well-established fintech and consumer loan company in Europe. The company has over 10 years of experience and is audited and regulated under the EU Banking Supervision.
Overall the goal of Nexo is to solve the lack of financing for the new digital economy however, this basically just promotes people to “cash out” and can take a toll on the market cap. In turn, this allows users to quickly cash out and make a run for it hopefully what you’re probably hoping will happen to whoever is reading this, just remember always take caution sometimes it too good to be true.
In order to minimize any risks, the Nexo Oracle tracks the changes of the crypto assets’ value placed in the Nexo Account in real time. To avoid any price discrepancies, the Nexo Oracle will draw real-time data from several different sources. The crypto assets within the client’s Nexo Account should have value to cover the outstanding loan at all times. If the price of the crypto assets placed in the аccount increase, the Nexo Oracle will immediately increase the amount of cash available to the client. Should the value of the crypto assets decrease below a liquidation ratio (dependant on the assets within the аccount), the Nexo Oracle acts accordingly and mitigates the risk of reaching the minimum loan requirements by a smooth repayment of the loan. There are various scenarios, which could occur throughout the loan usage that require Nexo Oracle’s interference
The most important and critical part of Nexo’s technological model is the Nexo Oracle – an automated system that maintains the elements of the business processes. When a crypto loan is set up, the Nexo Oracle is responsible for the automatic disbursement of cash, asset maintenance, notifications, and overall management.
The Nexo Oracle performs real-time asset valuation based on data from multiple exchanges at any given point in time. The Nexo Oracle maintains live data aggregation from at least 6 independent sources (exchanges), which minimizes overall risk for both Nexo and the client. The Nexo Oracle also detects live changes in asset value and recalculates loan limits. In the case of asset price appreciation, the loan limit is automatically and instantly increased.
The Nexo Oracle automatically records repayments and further accounts for all transactions made by clients. Interest repayments, outstanding balances, and up-to-date loan limits are automatically maintained at all times by the system.
In order to secure the proper functioning of the system, Nexo integrates big data analyses, self-regulating algorithms, and prediction modelling in the Nexo Oracle. That way, Nexo can guarantee that the information received from multiple external data sources is used for proper on-time business decision-making.
Slow Liquidation Process
Converting crypto holdings to cash is very slow, Nexo plans to solve this problem by allowing users to access cash anywhere which could be through a nexo credit card which is like your everyday MasterCard except it has blockchain technology
Lack of Trust and Transparency
Transactions in digital assets are often settled through P2P agreements that lack security and transparency on both sides. Nexo solves this problem with transparent contracts built on the blockchain.
Loss of Ownership
Users who want to access cash from their crypto assets today need to lose ownership of their digital assets. With Nexo, clients can have 100% ownership of their digital assets.
A prospective client transfers crypto assets to their Nexo Account. Once the relevant blockchain confirmations for the respective crypto asset are received, the Nexo Oracle automatically calculates the Loan limits and instantly sets up the loan.
The Loan limit is instantly available by bank transfer or the free Nexo Card. Depending on their needs and circumstances, the clients can choose the most convenient way to use their cash, as well as the currencies in which they would like to receive the funds. The loan limit is based on the market value of the crypto assets in the Nexo Account. Should the cryptocurrency appreciate in value, the Nexo Oracle increases the loan limit.
Clients can repay their flexible loans in multiple ways – via bank transfer, fiat or cryptocurrency. Special discounts on the interest rates are granted to those choosing to make payments with NEXO tokens. A third option is to pay by partial sale of the crypto assets (BTC, ETH, etc.) in their Nexo Account. In addition to the flexible repayment options, Nexo does not require any monthly minimum repayments as long as the outstanding balance is within the available loan limit. Once a repayment is received, Nexo Oracle records the transaction on the blockchain and instantly updates the loan limits.
If the crypto assets in the аccount meet the required limits of the outstanding loan balance, clients can withdraw part or all exceeding amount at any given time. Once the loan is fully repaid, clients can withdraw all of the crypto assets in the аccount.
Loan Parameters
It’s important to note that Nexo doesn’t accept all cryptocurrencies as collateral.
They accept BTC, ETH, XRP, NEXO, BNB, LTC, along with a few stablecoins out there.
Coinswitch
The options for buying NEXO with a credit/debid card are fairly limited. So far, the only service that we can trust which offers credit card purchases is Coinswitch, which compares rates from reputable brokers and gives you the best bang for your buck.
Alternative
Generally speaking, the safest route we’d recommend is that you buy ETH through coinbase or coinamama and exchange it for OMG on any of the reputable exchnages, like Huobi or HITbtc.
NEXO wallet
For a desktop wallet, we recommend only using the NEXO wallet, because frankly enough, it's that good. The Nexo token holders for this particular wallet, which is the official wallet for Nexo, are entitled to 30% of the profits as dividend payments. So they can enjoy passive income while being an owner of the assets. Even the Nexo holders can unlock the value of their assets without selling them and even can obtain an instant crypto-backed loan by using them as collateral. Nexo can even help the clients optimize their taxes as no sale occurs upon obtaining a loan against digital assets, hence is considered as one of the best Nexo online wallets.
Being based on the ERC-20 standard means that NEXO is supported by both the Ledger and the Trezor.
Ledger
As for using the Nano Ledger S, the first step towards setting up your device is unboxing it and checking if you have received all the accessories with the device. Once you have it unboxed, you need to configure it and initialize it before being able to use it. The process is quite simple and will hardly take about 20-30 minutes post which you will be set to use your Ledger Nano S device.
Setup guide video: here
Trezor
As for Trezor, installing is really simple. To properly install it users should attach the unit to the computer. After that continue with installing the bridge which allows the Trezor to join with the computer. The first step is to connect the Trezor to device’s USB slot with the cable given in the box. After that, go to myTrezor.com and proceed with installing the browser extension. Trezor can also be used on Android or an iPhone, or on a Windows or Mac computer. Now, initiate the extension and myTrezor will direct you to pick a PIN. After this, you will notice nine buttons but the numbers are hidden. After this, users should check the Trezor’s screen to recognize which numbers are in which place because it switches every time. Now set the PIN. Shortly after, Trezor should present a 24-word wallet “seed”. In short, one word at a time. Note down this seed and save it carefully. If your Trezor device malfunctions or is lost, you can utilize the seed to reconstruct the complete wallet.
Setup guide video: here
MyEtherWallet
If you didn't know, the NEXO token is based on the Ethereum ERC-20 standard which means that all ERC-20 supporting wallets can house your NEXO. For an online-based wallet, we recommend non other than MyEtherWallet. The wallet offers a brilliant combination of speed, trustworthiness and simplicity, making it the most popular online wallet for ether and any ERC20-based tokens.
Simply visit myetherwallet.com and set up your wallet with a method of your choosing, just make sure to store your private key somewhere safe. It's wise to have it written down on paper in case your PC/notebook malfunctions.
As we mention on most of our articles about ERC-20 tokens, the one disadvantage of MEW is that there are literally hundreds of phishing sites made to look exactly like it out there to get your tokens, so you better double check the address everytime and make sure to watch out for any malicious activity on your browser or PC.
