Nexo Allocates $12M for DeFi Ecosystem Incentives

Nexo, a crypto lending protocol, is giving away 10 million NEXO tokens, which are worth $12.5 million, to its users. The developers of Nexo announced this on May 8 to celebrate the protocol’s sixth anniversary. The purpose of the giveaway, called the Nexonomics-inspired hunt, is to reward both new and existing users for exploring the Nexo ecosystem. The giveaway will run until July 7. During this time, users can earn points by performing various actions such as topping up assets, activating their Nexo Card, borrowing fiat currency, investing in Nexo Earn products, and trading on Nexo Exchange. The conversion rate of points to NEXO tokens will be determined at the end of the event.

The developers also warned that certain actions could decrease a user’s points balance. For example, withdrawing crypto assets will result in a loss of points. The specific deduction varies depending on the type of asset being withdrawn. The deduction for withdrawing BTC, for instance, is 0.001 points for each $1 withdrawn. In addition to earning points, users can also receive multipliers and loyalty rewards based on their activity. These rewards can increase the points earned by 1.2x to 1.5x and provide loyalty rewards of up to 100% of the points value.

The developers provided an example to illustrate how the rewards work. If a user buys $2,000 worth of BTC during the first week of the hunt, they would receive 450 points. This calculation takes into account the purchase value, the points earned per $1 purchased, the weekly multiplier, and the new user multiplier. It’s important to note that the Nexo campaign is not available to residents of the US, UK, and Canada due to regulatory restrictions.

Since its launch six years ago, Nexo has become a popular decentralized finance lending platform, with a total value locked of $537.56 million. The platform also received approval from UAE regulators for its local entity, Nexo Services FZE, for virtual asset lending and borrowing on March 6.