Nexo

  • Cryptoasset Report
  • February 1, 2019

Nexo is an overdraft and lending service that offers users rapid approval for cryptocurrency backed loans.

Overview

Nexo is an overdraft and lending service that offers users rapid approval for cryptocurrency backed loans. Their cryptoasset, NEXO, is a security token that pays dividends to holders dependent on the platform’s profits. As a lending service, Nexo offers users liquidity options while allowing users to retain ownership of their cryptoassets. The project was developed by Credissimo, a leading European consumer lending company. NEXO launched via token sale as a Reg D Rule 506(c) offering in the US, raising $ 52, 500,000.

Protocol Details

Nexo allows cryptoasset holders to instantly take loans by collateralizing cryptoassets.

Loans are made with no credit checks nor exclusion based on geography, with such approach to loan approval enabling Nexo to instantly approve loans worldwide. Instead, clients transfer their cryptoassets to a Nexo Wallet, and an oracle calculates loan limits based on those assets market value. Such loan limit is made available by bank transfer or a free dedicated card.

Loan repayments can be made by bank transfer, fiat, or cryptocurrency, with payments made using Nexo’s token, NEXO, offering discounts on interest repayments. Clients can also choose to re-pay through partial sell of the collateralized crypto-assets. Once a loan is fully repaid, clients can withdraw the collateralized cryptoassets from their Nexo wallet.

Operational efficiencies are realized through Nexo’s oracle, a technological innovation responsible for automated wallet maintenance, data analytics, real-time asset monitoring, automated notifications, funds distributions, and repayment analytics. The oracle draws from multiple third party sources in real time to determine price information, and can increase a client’s loan limit should the collateralized cryptocurrency appreciate in value, or notify a client to add more cryptoassets to the wallet should the cryptocurrency decrease in value.

Nexo was developed by Credissimo, a European consumer lending company supervised by European banking and financial services regulators, and audited by Deloitte. While Nexo was developed using Credissimo’s experience in online lending, Nexo and Credissimo are distinct legal entities.

Asset Details

Nexo’s token, NEXO, is an ERC-20 standard security token—a token that complies with U.S. SEC regulations. NEXO token holders receive 30% dividends from Nexo profits, paid out proportionally to holdings in BTC, ETH, NEXO, or USD stablecoins. Long-term holders of NEXO are also eligible for loyalty dividends, and all holders additionally receive discounts when re-paying interest on Nexo issued loans using NEXO.

The max supply of NEXO is one billion. Of these, 52%, or 525 million NEXO, were made available through Nexo’s token sale. The remaining supply was slotted for overdraft funding reserves (25%), founders and team (11%), airdrop campaigns (6%), and advisors, legal and public relations (5.25%), with twelve month vesting as the minimum period.