Borrow Tokens At 0% APR With Nexo Instant Crypto-Backed Credit Loans | Loyalty Cashback In Savings Wallet

2 min read

Nexo’s Biz Dev expert George Manolov circles back to Nexonomics 3.0, covering the Exchange Loyalty Cashback and 0% Borrowing Rates.

George Manolov on Nexonomics 3.0, Exchange Loyalty Cashback, 0% Borrowing Rates

Exchange Loyalty Cashback

The Nexo Exchange is now integrated into their platform’s loyalty program. In this way, the most loyal clients earn rewards for making swaps through Nexo’s platform.

Here’s how it works: All Silver, Gold and Platinum tier clients will receive up to 0.5% cashback on all their swaps on the Nexo Exchange. All you have to do is ensure your Nexo account is in the Silver tier or higher by having sufficient NEXO tokens in your account.

With each individual swap, Exchange Loyalty Cashback is paid out in the currency purchased. The higher your loyalty tier, the more cash back you will receive. Your cashback is automatically deposited into your Savings Wallet, where you start earning interest on it instantly.

What’s even better: Exchange Loyalty Cashback is a permanent feature on the Nexo platform, meaning you can earn rewards on every future swap as well.

0% Borrowing Rates, Explained

A new feature has also been added to Nexo’s Instant Crypto Credit Line: 0% Borrowing Rates. This new option would allow Gold and Platinum tier clients to borrow at interest rates of just 1.9% and 0%, respectively, by maintaining an LTV lower than 20%.

Nexo’s low-cost and zero-cost credit lines are available under the same flexible terms as their regular credit lines, which means you can go between the 0-1.9% rates and their standard interest whenever you want. So if you need a larger withdrawal, you can still borrow at an LTV above 20% and get interest starting from just 6.9% APR.

How does Nexo’s  0% Borrowing Rates work? Answering Your Questions

Can I still get the low-cost and zero-cost rates if I already have an existing credit line?

Yes, you absolutely can. Just make sure your credit line’s LTV is under 20% and that you’re either in the Gold or Platinum Loyalty tiers, and you’ll automatically get Nexo’s new rates. If you’re a Gold or Platinum client and you’ve borrowed at a higher LTV than 20%, just add some extra collateral to your Credit Line Wallet to get their 0-1.9% rates.

What rates will I get if I use the NEXO Token as collateral since its permitted LTV is already under 20%?

If you’re in the Platinum tier, you’ll automatically get 0% APR. If you’re in the Gold tier, you’ll automatically get 1.9% APR.

Do zero-cost loans impact the repayments in any way?

No, you can still repay your credit lines using any supported asset at any time.

What happens if the value of my NEXO Tokens fluctuates and I move between Loyalty tiers?

Since interest on your credit line is accrued daily, if, you’re a Platinum client, accruing 0% interest each day and the value of your NEXO Tokens drops enough to place you in the Gold tier, you will start accruing interest at 1.9%, provided that your LTV remains under 20%. However, if a day later, the value of your NEXO Tokens rises or if you add more tokens to your account to get you back up to the Platinum tier, you’ll start getting the 0% rates from the next day.

Simply put, if your Loyalty tier drops, you’ll start accruing interest at the rate available for your new tier. The good news is that you’re free to go back and forth between tiers at any time, so you’re in control of your rates at all times, just remember to keep an eye out for market volatility.

What happens to my credit line APR if the value of my collateral changes and my LTV goes from under 20% to over or vice versa? What happens if I decide to repay a part of my loan and lower my LTV, or if I take out more credit and my LTV rises?

If you’re in the Platinum tier and your collateral’s value changes, moving your LTV from under 20% to over 20%, you will accrue interest at 6.9% until you either add more assets to your credit line wallet or your collateral appreciates in value enough to get your LTV back under 20%. Once your LTV is over 20% again, you will start accruing interest at 0% APR on the next day. It’s the same principle for the Gold tier, but with the relevant Gold rates.

Similarly, if your collateral grows enough to get your LTV under 20% and you’re in either the Gold or Platinum tier, you’ll start benefiting from our low-cost and zero-cost interest rates.

Can I still borrow at an LTV higher than 20%?

Yes, your borrowing rates will just be the standard Nexo rates that start from 6.9% for Platinum clients and go up for the lower tiers.

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