What is Collateral?

Collateral is crypto assets you would put up for a loan (if you don’t repay they will sell it to cover the default). You do not earn interest on crypto that you use as collateral, although Nexo tokens are an exception to this, they continue to earn interest while being in your Credit Wallet (collateral). If you are not borrowing from Nexo then your funds are held in a “savings wallet” where it can earn interest until it is either moved off the platform or used as collateral on a loan.

August 21, 2022
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