Crypto lending platform Nexo is rolling out a major incentives program allocating 10 million of its NEXO tokens, valued at approximately $12.5 million, as rewards for users engaging with various products across its ecosystem. The new campaign celebrating Nexo's sixth anniversary will run until July 7th and aims to drive broader adoption by incentivizing activities like trading, earning interest, depositing assets, and borrowing on the platform.

Users can accumulate "points" based on specific actions taken on Nexo, with the points ultimately convertible to NEXO tokens at the conclusion of the event period. The more platform services leveraged, the greater the potential point earnings and associated token rewards. Specifically, Nexo outlined the following point structures:

Earn 0.01 points per $1 of crypto assets deposited
Receive 10 points for activating a Nexo Card
Accrue 0.04 points per $1 of fiat currency borrowed via Nexo Loan products
Gain 0.03 points per $1 invested through Nexo Earn interest accounts
Earn 0.05 points per $1 traded on the Nexo Exchange with boosted rewards

However, withdrawing assets from Nexo accounts will decrease a user's cumulative point balance, serving as an incentive to keep funds on the platform. Withdrawing $1 of crypto deducts 0.01 points, while Bitcoin withdrawals reduce the balance by 0.001 points per $1 withdrawn.

To further amplify rewards, Nexo has implemented bonus point multipliers for different levels of platform engagement. New users funding accounts receive a 5x multiplier, with all users earning 1.5x points on qualifying activities during the first week. Those maintaining higher asset balances on Nexo can boost their points by 20-50% through additional loyalty bonuses.

Nexo provided a hypothetical example showing a new user depositing $2,000 to purchase Bitcoin in the first week would earn 450 points calculated as: $2,000 trade value x 0.03 points per $1 traded x 1.5 weekly multiplier x 5 new user multiplier.

The lending protocol specified that due to regulatory compliance, users based in the United States, United Kingdom, and Canada are ineligible for the anniversary rewards campaign.

Since its 2017 launch, Nexo has grown into a major decentralized finance hub facilitating crypto lending, borrowing, interest accounts, trading and other services. The platform currently has over $537 million in total value locked across its product suite. In early March, Nexo obtained regulatory approval to operate virtual asset lending and borrowing services in the United Arab Emirates through its local entity Nexo Services FZE.

With its latest community incentives push valued at over $12 million in tokens, Nexo aims to generate substantial user growth and engagement across its rapidly expanding DeFi platform. Crypto lending has emerged as one of the most popular and lucrative sectors within the burgeoning decentralized finance space.