The Nexo Booster brings leverage trading to Nexo
The Nexo Booster brings leverage trading to the platform, allowing users to buy up to 3x as many assets as they want.
Nexo, a leading cryptocurrency lending platform and exchange, has launched a new feature on its platform - Nexo Booster.
The booster, which was introduced earlier this year as part of the Nexo app, is now designed to provide more functionality to the platform's web users, allowing them to further increase their holdings.
The Nexo Booster brings leveraged trading to the platform, allowing users to buy up to three times the amount of the desired asset.
The company says the Booster is an industry-first product that allows users to amplify the buying power of their current holdings without having to deploy additional capital.
Fully collateralized leverage with Nexo Booster
What sets the Booster apart from other leverage products on the market is its hybrid design. Essentially, Booster shares identical functionality with Nexo Exchange and Nexo Instant Crypto Credit Lines, which allows it to execute, borrow, and exchange transactions automatically and without slippage.
This feature allows users to get leverage between 1.25 and 3x on their portfolios via the Nexo Instant Crypto Credit Line. Leverage via the Nexo Booster works by collateralizing the user's existing holdings and the assets the user acquires through the Booster transaction. This fully collateralizes the user's entire line of credit and brings the loan-to-value (LTV) ratio to 70% or less.
The LTV of a booster transaction determines the amount of the fees, which range from 1% if the LTV is 50% or less to 3% if the LTV is between 60% and 70%. Since the Booster uses the infrastructure of the exchange and Instant Crypto Credit Lines, users receive up to 0.5% exchange loyalty premiums on each transaction.
There are 28 currencies available in Nexo Booster - BTC, ETH, XRP, LTC, EOS, BNB, XLM, PAXG, LINK, TRX, ADA, DOT, AXS, MATIC, MANA, SAND, UNI, AAVE, GALA, CRV, 1INCH, FTT, SOL, AVAX, FTM, ATOM, KSM and NEAR.
Although the platform has set a maximum amount of $250,000 per booster transaction, users can make as many transactions as they want. An open credit line doesn't prevent users from using the booster. However, it's important to note that an open credit line changes the LTV for the booster transaction.
Each of the 18 cryptocurrencies that can be used as collateral in the line of credit has an allowable LTV, with Bitcoin being the highest at 50%. The Nexo Booster has a single allowed LTV for all coins, set at 70%, which allows users to borrow more money for assets that would otherwise have a low LTV.
Aside from the new functionality it brings to the platform, the Nexo Booster also brings an added level of security. While the Booster is technically similar to leverage or margin trading, it's designed to provide users with more security by only allowing safer LTV levels for transactions that aren't typical of leverage trading. Unlike margin trading, which allows both long and short positions, Nexo Booster only provides leverage for long positions.
Another important change that Nexo brings is a drastic improvement in the usability of leverage trading. Borrowing by repeatedly borrowing against crypto assets, buying more assets, and collateralizing them for more loans is a time-consuming and expensive process that can also trigger multiple taxable events.
Nexo Booster automates all of these loan requests and transactions, saving both time and money for customers using the platform.
Nexo is currently working to add more features to the Booster and improve user security. Nexo Booster isn't available for users in the US, Canada, Australia and Estonia.
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