Using NEXO as collateral for your loan brings you many benefits like a 50% discount on the interest that has been charged. The same discount applies when repaying your loan with NEXO Tokens. Both discounts cannot be combined, but the discount for using NEXO Tokens for repayments will always apply on the portion of your loan that is not using NEXO Tokens as collateral.
The deposited NEXO Tokens you use as collateral are also eligible for the Nexo dividend payouts as long as two conditions are met:
- NEXO Token Holders must undergo one-time KYC (Advanced Verification) just as they would do at any other compliant financial institution. Nexo’s KYC process is very simple, fully automated and usually takes less than two minutes;
- NEXO Tokens must be held/staked in your Nexo Wallets at the ex-dividend date.