Nexo, a leading cryptocurrency lending platform and exchange, has launched the Nexo Booster, a new feature on its platform.
The Nexo Booster, which was launched earlier this year as part of the Nexo app, is now set to bring more functionality to the platform’s web users and allow them to grow their holdings even further.
The Nexo Booster introduces leverage trading to the platform, allowing users to purchase up to three times the amount of the desired asset.
The Booster, according to the company, is an industry-first product that allows users to increase the purchasing power of their existing holdings without allocating additional capital.
Nexo Booster provides fully collateralized leverage
The Booster’s hybrid design distinguishes it from other leverage products on the market.
The Booster, in essence, has the same features as the Nexo Exchange and the Nexo Instant Crypto Credit Lines, allowing it to execute, borrow, and exchange transactions automatically and without slippage.
The Instant Crypto Credit Line feature allows users to get 1.25 to 3x leverage on their portfolios.
The Nexo Booster leverage works by collateralizing the user’s existing holdings as well as the assets acquired through the booster transaction.
This fully collateralizes the user’s credit line and reduces the loan-to-value (LTV) ratio to 70% or less.
The Nexo Booster supports 28 currencies: 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.
While the platform has set a maximum of $250,000 for booster transactions, users are free to make as many as they want. The presence of an open credit line does not preclude users from using the Booster. It is important to note, however, that having an open credit line will change the LTV for the booster transaction.
Each of the 18 cryptocurrencies that can be used as collateral in the credit line has a maximum LTV of 50%, with Bitcoin having the highest. The Nexo Booster has a single permitted LTV of 70% for all coins, allowing users to borrow more against assets with a low available LTV.
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