A while back we explored the opportunities for making some passive income on various DeFi platforms. (Read it HERE) I have been earning interest on my crypto holdings in BlockFi and Nexo (it’s good to diversify) two of the platforms that I mentioned in that article.
There have been some interesting developments with the Nexo platform that are worth mentioning in this article.
Back in April 2020 Nexo was only paying interest on stable coins. As of this writing they have expanded their offer.
As you can see in the graph, they are paying 10% on fiat and stable coins and 5% on other coins.
You can open accounts in major national currencies such as the US dollar, Euro or the British Pound, these FIAT accounts pay up to 10% APY interest.
Supported stable coins are Tether, USD Coin, TrueUSD, Dai and Paxos standard, these accounts earn up to 10% APY.
You can also deposit well established crypto coins Bitcoin, Ethereum, Ripple, Stellar, Litecoin, Bitcoin Cash, EOS and ChainLink earn you up to 5% APY.
Soon Binance Coin and Tron will be added to the list, paying up to 5% APY.
Now, a very nifty feature of Nexo is that the interest you earn is credited to your account on a daily basis. Most DeFi and traditional financial institutions will credit your account at the end of the month.
Now, I have mentioned the maximum interest rate you can get, if you go and open an account you may find that your interest rates are more like 4% and 8%, instead of 5% and 10%.
What’s the catch?
In order to get the maximum rate you must hold 10% of your total assets in Nexo tokens. Nexo tokens entitled you to share on the dividends of the platform. You can buy the Nexo tokens you want without leaving the Nexo website. The current price for NEXO according to Coingecko is 0.1972 USD.
It must be noted that even though all the site mentioned in this article has been proven to be reliable, there is always risk associated with dealing in cryptocurrencies. This is an unregulated market, so care must be exercised to contrast the information provided in this article before you commit any funds. This article is not intended as financial advice.
