I've been a user of Nexo's platform for close to a year now and have successfully taken out and repaid multiple loans with them, but Nexo's recent announcement has made me worried about using them to take out loans again in the future. While it's being touted as an improved policy, I personally think that it's anything but improved, except for current NEXO bagholders. Here's why:

1. It's good for current NEXO holders, but not necessarily good for those looking to take out loans. Having to stake NEXO tokens to get the 5.9% lowered rate is contradictory to the fact that some people use their holdings as collateral to take out a loan because they legitimately need the money, not to reinvest it in crypto.

2. The fact that some people can deposit their non-stablecoin holdings as collateral without earning interest on it (yes, I know, soon apparently we can earn interest through NEXO on non-stablecoin assets) AND have to additionally purchase and stake NEXO on top of their collateral to earn the 5.9% rate is not going to endear NEXO to new users.

3. There isn't a set dividend schedule for the staked NEXO, and there's always the chance that what one stakes to cover the interest could depreciate in price value (NEXO's token decreasing in value), which could lead to the person with the loan having to pay a higher interest rate than 5.9% through no fault of their own (pro-rated based on the staked NEXO's value during the duration of the loan).

4. Plus, what if the value of the collateral decreases and the LTV has to be maintained PLUS the value of the staked NEXO also decreases at the same time? You're then looking at someone who has to add more of the particular coin that they used as collateral AND be faced with having to add more NEXO to be staked or run the risk of having their assets liquidated PLUS being beholden to a higher than 5.9% interest rate.

In my opinion, this new structure creates significantly more risk for non-current NEXO token holders.