Jan 24, 20212 min read

Crypto Loans and Interest - Custodial companies (part 2)

Continuing from here Crypto Loans and Interest - Custodial companies (part 1)

Information collected from respective company websites.

NEXO - LOANS

The following crypto assets can be deposited as collateral: BTC, ETH, XRP, LTC, XLM, BCH, EOS, LINK, TRX, stablecoins, PAXG, NEXO and BNB. Support for other major altcoins is coming later in 2021.

If you are looking to use your crypto assets to secure a loan, the collateral amount is based on the following Loan to Value (LTV).

The Loan-to-Value percentages of each asset are dynamically determined by the Nexo blockchain oracle algorithms, depending on the current and historical volatility and market liquidity of the asset.

Those are current Loan-to-Value for the supported by us cryptocurrencies:

If the collateral assets decrease in value significantly, the client will be warned to add more collateral.

The client will be notified, and partial automatic loan repayments will only start after the Loan-to-Value increases to 83.3%.

The client will receive a minimum of three notifications (via SMS and email) before that. This will happen when the Loan-to-Value increases to 71.4%, 74,1%, 76.9%. The client will be prompted to deposit more crypto assets into their Nexo account to prevent partial automatic loan repayments.

NEXO - INTEREST ACCOUNTS

You have the option of opening an interest account and have your crypto assets earn you a return while holding them. Assets supported: BTC, ETH, XRP, BCH, LTC, BNB, EOS, LINK, XLM, TRX, PAXG, USDT, USDC, PAX, TUSD, DAI, HUSD.

On the website they advertise - "Earn up to 8% interest on crypto and up to 12% on stablecoins, paid out daily."

The interest rate is determined by:

1. The ratio of NEXO Tokens against the balance of the other assets in your Savings Wallet.

- if the NEXO Tokens value is below 10% of total assets held in the Savings Wallet, then there is no additional interest bonus

- if the NEXO Tokens value is above 10% of total assets held in the Savings Wallet, then you receive a 1% bonus interest on your cryptocurrencies and 2%bonus on stablecoins

2. The cryptocurrency interest is paid:

- if the interest earned is paid in kind (the same cryptocurrency), then there is no additional bonus

- if the interest earned is paid in NEXO Tokens, then you receive a +2% bonus on interest on all your holdings