Thought to update here, seeing as I saw another thread on Nexo in Service Discussion. I haven't changed my mind about them (neutral, leaning towards wary), the model appears to work. Lend money, use overcollaterised loans, and you can always pay people back and bank on crypto doing better in the future.
As
TryNinja wondered here, I'm also curious to know what happened during Black Thursday. MakerDAO and others had to liquidate a lot of lenders and are trying to make them whole again but I know some people were really pissed with defi platforms in that time.
Right so against my better judgment, and perhaps since I anyway do trust banks with my fiat (yay), I signed up with Nexo around the time I started asking in this thread and deposited all the USDT I had from cumulative small client payments. Interest racks up on the next full day, though it's 8% and not 10% as advertised. I clarified that you actually get 25% more interest (so 10% instead of 8% for fiat/stablecoins and 5% instead of 4% for crypto) IF at least 10% of your fiat value holdings are in Nexo internetcoins. So, nope.
I'll probably leave that in there, it's not so much I actually don't hold stablecoins but you never really refuse any form of payment you get, so maybe I see a healthy 8% interest after a year there. I'll be sure to update.
Oh, also applied for their card. Seems like I'm in a waiting list.
BTW, sharing a selected response from Customer Support "Daniel":
Question:
Is this $100 million an overall insurance or is it per account and per instance? It doesn't seem like much to be honest, and where can we find information on how much deposits NEXO has already? Answer: Even if we hold more than 100 Million in custody, BitGo cannot be compromised to the level of all assets been stolen with a single attack. BitGo does not keep all of their cold wallets at one place but in multiple vaults in different banks which guarantee their safety with different insurance policies.
With the level of security that BitGo has, a breach of that size is as close to impossible as it can be.
What I am saying is that even if a breach ocurred there isn't a risk of loosing funds in a amount as great as $100M due to the way BitGo manages their security.
This is why you can be sure that all of your assets will be insured at 100%.
So, it is ONLY $100M insured. They feel certain BitGo can't lose so much, but now you know, they really only do have that much insured. Probably not even 10% of total funds in deposits if we believe there are billions locked up in Defi now.