Decentralized finance continues to grow and revolutionize not only the crypto industry but the banking services themselves. It has offered a better, faster, and cheaper service than the traditional banking industry ever since it originally emerged, and as time goes on, it only continues to improve.
Take lending and borrowing as an example. Thanks to the fact that it is decentralized, and run solely via smart contracts, it requires lenders — regular people who step in with their own money that they wish to put at others’ disposal in order to help them out and receive rewards in exchange. In other words, users who have some extra money can deposit it into lending pools, and allow others to borrow it.
Borrowing is improved in its own way, by being quick and simple, with no paperwork or weeks of backchecks required. All that borrowers need to do is deposit collateral, and they can receive their funds after the smart contract sets up their payment plan. However, there are some projects, like Nexo, that found a way to improve this process further, bring in more rewards, simplify the process even more, and make it even better than it originally was.
What Problems Does Nexo (NEXO) Solve?
Lending and borrowing have gone through significant improvements since DeFi emerged, thanks to projects like Nexo that brought their own solutions to common problems. Here are some of the solutions that Nexo itself enabled.
Instant loans
The first thing to note about Nexo is that any loan that you request is granted to you instantly. The only requirement is to deposit a high enough collateral, and the smart contract will calculate your loan, and deliver it to you. In fact, according to Nexo, it is the first-ever provider of instant loans, which means that you can have the money in your hands by the end of the day.
Loans are backed by multiple cryptos
This is a crypto-backed loan, but unlike many others, it doesn’t only accept the project’s native cryptocurrency. In fact, according to Nexo’s website, you can get a loan and back it with 38 different cryptocurrencies that you can submit as collateral, including coins like Bitcoin, Ether, Litecoin, or Ripple’s XRP, among others.
Fully automated and decentralized
As mentioned, Nexo’s goal is to solve inefficiencies in the lending & borrowing business, and that also means lengthy processes and the possibility of human error or bad judgement. In other words, the process is completely automated and decentralized, run through smart contracts alone. There is no looking into your past, no waiting for approvals, measuring your credit score, or anything of the sort. All that is required is that you deposit your collateral and request a loan via the smart contract, and the contract will do the rest and calculate how much you can get and how much you need to pay simply through math and math alone.
Take out loans in stablecoin or fiat
Finally, one big issue with decentralized lending is that most projects grant you money in their native cryptocurrency or some other crypto. Given the volatility of digital assets, you risk having the coins’ prices drop in that short period between you getting the loan and converting it into fiat.
Nexo eliminates this problem also by paying you out in stablecoins or fiat itself. Regardless of which you choose, you will never lose money due to crypto volatility when borrowing through Nexo’s system, which is further encouraging users, and confirming that this project is safe and reliable.
Benefits of Nexo (NEXO)
Solving the problems of lending is definitely a great thing for the entire DeFi sector, but let’s now take a look at some of the more direct benefits that you can enjoy by getting involved with Nexo and its token, NEXO.
Discounts on interest
The first thing to note is that simply by holding NEXO, you are eligible to receive certain benefits, including discounts on interest. Of course, this is something that only concerns borrowers, but it is still of great importance, as interest is something that has to come with the loans, centralized or decentralized. In other words, your payback rate will be a bit lower if you already have some NEXO in your possession, which is not something to ignore.
Earn interest
On the other hand, if you are a lender, you stand to earn interest from lending your coins and tokens. According to the project’s website, you can earn up ti 17% annual interest on your crypto, as well as EURx, GBPx, and USDx, with unique daily payouts. Not only that, but your funds are insured with a $375 million-large fund, and you can add or withdraw money at any time.
Receive dividends
Nexo also offers dividends to its token holders — rewards for all those who opt to purchase its native cryptocurrency and keep it in their wallets. These are the funds that come directly from Nexo’s own profits, and Nexo’s way of showing appreciation for those who support its project.
Nexo Card
Lastly, Nexo also offers its own crypto card called Nexo Card. It claims this is the only card that lets you “spend the value of your digital assets without having to sell them.” It also gets you instant cashback on all purchases, and offers flexible repayment options. The card is accepted by over 40 million merchants worldwide, and the cashback that you receive on your payments is 2%. The payments that merchants receive come in their local currency, and there are no monthly, annual, or FX fees.
How Does Nexo (NEXO) Work?
Nexo is the first-ever provider of instant loans backed by digital coins. Its goal is to solve the inefficiencies that are troubling the lending market, and it does this through total automation of the lending process, using nothing but smart contracts and an oracle on Ethereum’s network to manage loans.
Basically, after you transfer your coins to a Nexo-controlled wallet, the oracle will establish the loan, and the borrower gets the funds instantly. When they make a deposit in order to repay the loan, the oracle returns that money and records of the transaction on the blockchain. The process is quick, efficient, cheap, and the project itself offers a lot of benefits that make it more than worth using.
How to Buy Nexo (NEXO)
Currently, Nexo (NEXO) is available for purchase on the following exchanges.
Huobi Global – Established in 2013, Huobi Global has since become one of the world’s largest digital asset exchanges, with an accumulated trading volume of US $1 trillion. It should be noted that Huobi Global currently does not accept USA or Canadian residents.
FTX – A crypto derivatives exchange that currently offers over 100 spot markets. FTX offers user-friendly desktop and mobile apps with multiple order types including derivatives, options, volatility products and leveraged tokens. Use Discount Code: 46313462 for 5% cashback off all trading fees.
Nexo (NEXO) — A unique crypto lending project with instant loans
So far, we have seen many aspects of the DeFi sector that have been transforming the crypto industry in one way or another, and every single one of them has been better and more advanced than similar offers in traditional finance. However, when it comes to loans, Nexo has no equal, even in the rest of the DeFi sector.
Not only does it let you deposit nearly 40 different coins as collateral, but it also gives you loans in stablecoins or fiat, it lets its holders earn dividends and discounts on interest, it insures all funds deposited into its care, and the loans are granted to the users instantly. There are essentially no downsides to the deal, which is very much worth keeping in mind if you need a loan quickly.
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