The main difference is in the number of manual actions you’ll have to make, the execution time, and, most importantly, the leverage ratio.
Technically, if you wanted to, you could leverage yourself up to 2x by repeatedly borrowing against crypto with Nexo’s Instant Crypto Credit Lines, purchasing more crypto with the borrowed funds, collateralizing those assets, and then using the credit against them to buy more coins, repeating the process numerous times.
Rather than just 2x, the Nexo Booster allows you to leverage up to 3x in one instant transaction – eliminating the need for countless manual credit requests and swaps from stablecoins to crypto. This saves you time and also guarantees less price fluctuation for acquiring assets through leverage.
Another key difference between the Booster and our credit line functionality comes from the maximum permitted LTV. Every asset you can use as collateral for Nexo’s Instant Crypto Credit Lines has a maximum LTV. For BTC and ETH, it can be as high as 50%, but for other assets, it’s lower. For example, Polkadot has a maximum LTV of 30%. The Nexo Booster, however, has one permitted LTV of 70% – for all the cryptocurrencies we offer. This way you can borrow more against currencies that otherwise have a lower available LTV.