Let say, I have 100 USDT on my Nexo wallet.

Question

Let say, I have 100 USDT on my Nexo wallet.

And I get 90 USDT on 0% interest. Do I need to repay it at one go? Or can I repay in parts like 20 USDT the next month, then 30 next to month and so on

#cryptocurrency #english #nexo

0

22.01.2022

13 ответов

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ㅤ Автор вопроса

Kristian
You can repay as often or as rare as you would lik...

I thought Nexo offers 90% of stablecoins at zero interest

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22.01.2022

Kristian

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I thought Nexo offers 90% of stablecoins at zero i...

Not like that. It is correct that they offer loans starting at 0% and stablecoins have 90% LTV though. You example doesn’t work for several reasons though. 1. Your LTV would be 90% which is above the liquidation threshold of 83.33% so you would be instantly liquidated if you somehow got into that situation. 2. You can not take a loan where more than 50% of the collateral is stablecoins. This is because of AML. Basically there is no legitimate reason to take a stablecoin loan with stablecoins as collateral, so anyone doing this would probably be doing something shady. 3. The 0% interest offer is available only for loans with LTV under 20%, which your loan wouldn’t be.

0

22.01.2022

ㅤ Автор вопроса

Kristian
Not like that. It is correct that they offer loans...

yeah but if I convert my fiat to USDT and keep it on Nexo, I will earn 10% +2% (nexo) interest. And then if I need money urgently, I can borrow from my USDT at zero interest and still earn interest on my USDT

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22.01.2022

Kristian

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yeah but if I convert my fiat to USDT and keep it ...

Another thing that doesn’t work the way you think. Collateral doesn’t earn interest. Maybe you should try to read up on how these things work before making any crazy strategies.

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22.01.2022

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Kristian
Another thing that doesn’t work the way you think....

So, I guess its of no point holding stablecoins.

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22.01.2022

Kristian

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So, I guess its of no point holding stablecoins.

Is 12% APY not a reason to hold stablecoins?

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22.01.2022

Kristian

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yeah but if I convert my fiat to USDT and keep it ...

Just have to say, if it did work like you thought it would then that would be awesome. You could use $100 to take a free loan at 90% LTV and use that to take a new loans repeatedly until you reach close to 10x leverage or a total of $1000 earning 12% APY, which is a 120% APY return on your initial capital. Definitely wouldn’t mind that.

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22.01.2022

ㅤ Автор вопроса

Kristian
Is 12% APY not a reason to hold stablecoins?

Yeah but if I convert that into let say AVAX or MATIC, I will earn interest plus when the pricce goes up, I can sell at a good profit. But with stablecoins, I can only earn interest. I was thinking of holding stablecoin for a different strategy. But you proved that wrong.

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22.01.2022

Kristian

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Yeah but if I convert that into let say AVAX or MA...

Sure, but when AVAX or MATIC goes down you lose money though, it works both ways. Many would prefer the stability of stablecoin.

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22.01.2022

ㅤ Автор вопроса

Kristian
Sure, but when AVAX or MATIC goes down you lose mo...

To be honest, stablecoins are not very stable when you convert that into INR (Indian rupees). Sometimes, 1 USDT = 81 rupees, sometimes it goes down to 78 rupees. It even went down to 73 rupees per USDT in December when there was a rumor that Indian govt will ban cryptocurrencies. Stablecoin may be stable for people in Europe or US, but not so stable where I am from

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22.01.2022

Kristian

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To be honest, stablecoins are not very stable when...

Why would USDT go down because of rumors related to India? I mean even if it falls on some local exchanges you can just use any global exchange where it is still worth $1. And if you are talking about the INR/USD rate itself being volatile then it definitely won’t be as volatile as for example AVAX or MATIC.

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22.01.2022

ㅤ Автор вопроса

Kristian
Why would USDT go down because of rumors related t...

Because sellers buy and sell USDT on P2P market. When there was a rumor India will ban crypto, all the sellers got panicked and started selling their coins at a loss. USDT price fluctuates on P2P market based on the demand.

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22.01.2022

Kristian · Accepted Answer

Kristian

You can repay as often or as rare as you would like. Complete flexibility (note the 30 day minimum interest though). However the numbers of the loan you are using as an example wouldn’t work.

0

22.01.2022

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Let say, I have 100 USDT on my Nexo wallet.

13 ответов

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