Interest discounts apply when you use NEXO tokens as collateral or when you make repayments using NEXO.
Annual Percentage Rate (APR) starts at 5.9% when you repay accumulated interest on your loan using NEXO Tokens. You can get the discount as well when you use Nexo Token as collateral.
Depending on the total market value of your Nexo tokens and the part of your loan which is covered by Nexo, the Nexo Oracle automatically adjusts the interest rate. If Nexo tokens back the whole loan, then the 50% discount is applied automatically.
Both discounts can be combined only when Nexo tokens do not fully cover the total outstanding balance. Then, you can repay the interest using Nexo tokens and get a discount for the part of your loan which is not backed by Nexo tokens.
Please note that the maximum discount you can get using one or both combined approaches cannot exceed 50% as then the interest would go below 5.9%.
Annual Percentage Rate when not utilizing NEXO Tokens is 11.9%.