Hello and welcome, as promised not a lot of words here.
T = Total $USD value of nexo tokens you own
A= Optimized T; (.9)*T // the 10% of nexo should be kept in the savings wallet to increase interest rate of stable coins from 8% to 10%
L = Loan; (.15)*A // Nexo has an LTV ratio of %15 (you can only take a loan out equal to 15% of the value of the asset)
R = Restricted balance; //keep this in stablecoin in savings wallet this will cancel out the cost of the interest on the loan
C = Cost of Loan; APR * L
V = Unlocked value
Constant .059 = This is the cost of the interest of the loan yearly (5.9% APR available when you have staked nexo tokens enough to cover interest for entire year (this means completing KYC all the way) (if the only loan you are taking out is collateralized by nexo the requirements will be met)
Constant .1 = This is the amount of interest your restricted balance will have accrued yearly
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[ L * (.059) = C = R * (.1) ]
// this sets the cost of the loan equal to the amount of accrued interest from the restricted balance.
[L * (.059) = R * (.1)] solve for R, [R =(.59) * L]
[L - R = V] plug in R in terms of L, [L - ((.59) * L) = V]
Example: T= 10,000, so L = 1,350, so V = 553.5
It works out to be about 5.535% of your total value of NEXO tokens.
What can you do with V? If you leave it in your savings wallet it will accrue interest and you'll make 10% yearly on it. Or you can take it and use it for your favorite yield farming techniques. https://defiprime.com/defi-yield-farming
you should be able to leave your nexo account alone for a significant amount of time before anything starts to become unhinged. Remember you need to keep 10% of the total value of your stable coins in nexo in your savings wallet to keep the 10% interest, and the value of your stable coins goes up daily. Also you need to make sure that you can afford the interest at 11.9% to receive the 5.9% interest rate. (none of this should be an issue for a few years.)
