Nexo Adds ZEC With Card Spending and Collateral Borrowing
Nexo has added ZEC with 4 advertised uses: buying through a card, Apple Pay or Google Pay; swapping on the exchange; borrowing against ZEC; and spending with Nexo Card. Each use moves funds differently.
Nexo Card has two modes, and a ZEC balance behaves differently in each. In Debit Mode, Nexo converts the selected assets at checkout, so ZEC used for a purchase leaves the account. In Credit Mode, the purchase draws on a credit line backed by collateral: ZEC pledged as collateral stays in the account, but each purchase becomes a balance that accrues interest until it is repaid. Nexo pays card cashback of up to 2% only on Credit Mode spending.
The loan-to-value ratio Nexo assigns to ZEC sets how much Credit Mode spending a ZEC balance can support. A fall in the ZEC price shrinks that room while the card balance stays the same, so a holder who pays for everyday purchases through Credit Mode carries ZEC price risk for as long as the balance is unpaid. Debit Mode involves no loan, but every purchase is a sale of ZEC at the rate applied at checkout.
Sources: Nexo's ZEC account and card functions.
