2.2 billion people lack access to financial services. Nuo seeks to help by rewriting global debt on the blockchain, creating a peer to peer debt marketplace.
Launched in 2019, Nuo Network quickly became a massive lending protocol in Asia as it crossed $2 million in crypto reserves. The platform offers decentralized crypto loans, interest accounts, and margin trading.
If you're interested in Nuo's debt products, here's our in-depth Nuo Network review.
What Is Nuo Network?
While the borrowers' interest rate is fixed on the network, it's variable for lenders. It also provides leveraged trading up to 3x.
A borrower uses their crypto as collateral for a loan, which is secured into a smart contract. Nuo issues the loans quickly—without the need for paperwork or credit scores.
The platform is non-custodial, meaning users will continuously retain access to their funds. The interest rates vary from 0.1-7%, depending on the currency you're lending or borrowing.
In the US, the typical money market account rate is around 1%, so Nuo offers a better deal. Plus, all Nuo Network loans are fully transparent, and you can view them on the blockchain.
How to Use Nuo
Once you create an account on Nuo Network, the platform will devise a smart contract-based trading account for you automatically. You'll need to transfer ETH or ERC-20 tokens into your trading account to begin using the network.
As an account holder, you'll have the option of connecting your account with a trading account as a login method or sign a reserve order rather than using a password.
To be a lender on Nuo, you must create a debt reserve with your preferred token for a specified duration.
A debt reserve is a pool of ETH or ERC-20 tokens that are lent to borrowers according to their loan requests. The annual premium rate (APR) is determined based on the yearly interest that a typical debt reserve receives.
Debt reserves are combined with other reserves to ensure borrowers' requests are funded.
Once your reserve expires, the accrued interest is transferred to your trading account.
If you're looking to acquire a loan by creating a loan order, you must first select a digital asset. You should also have 1.5x of the loan amount as collateral.
The loan is funded once matched to a reserve. The funds are then transferred into your trading account. You can withdraw your funds at any time once they hit your account.
Every Nuo Network loan requires you to pay back fixed interest.
When it's time to repay your loan, you must have the loan amount plus interest in your trading account. If you default on the loan, the lender repays the loan with your collateral. The remaining collateral will return to your trading account.
If you're looking to margin trade, you'll find more than 30 trading pairs across four markets, with a peak of 3x leverage. The trades can be long or short.
To margin trade, you must select a digital currency to go long or short on (betting that the price of the asset will go up or down).
Once you sign a smart contract, Nuo creates the trade.
The liquidation price is not fixed. It is dependent on the volatility of the digital currency used as collateral. As the collateral becomes more volatile, so does the liquidation price.
Benefits of Using Nuo Network
Nuo hopes to offer lending applications that democratize the entire loan-seeking process by giving people access to a broader pool of lenders. When using Nuo Network, you'll find a wide variety of assets, collateralized loans, and smart contract integration.
On Nuo's debt marketplace, you'll have access to a wide variety of long or short crypto tokens, including Bitcoin, Ethereum, Kyber Network, Augur, Basic Attention Token, MakerDAO, and Wrapped Bitcoin.
You'll also have the ability to select loans at your preferred interest rate and repayment period.
Loans with Collateral
Every loan issued on Nuo Network is supported by collateral in the smart contract. Lenders have the assurance that their loan will be repaid, plus interest—even if a borrower defaults on the loan repayment.
Nuo Network implements smart contracts that allow you total control of your ETH and ERC-20 tokens through Meta transactions.
Your funds are stored entirely on the network by the smart contract, so Nuo Network cannot access them.
Is Nuo Network Safe?
With decentralized finance, you'll always face the risk of security issues and smart contract malfunctions. Fortunately, Quantstamp audits the smart contracts offered on the Nuo Network.
Quantstamp proactively checks for bugs in the contract code that an attacker may attempt to exploit. This auditing assures lenders that their funds will not be compromised due to contract error or hacker theft.
Negatives of Nuo Network
While the auditing discussed above can certainly offer assurance, there is always a risk of losing funds due to security breaches.
DeFi lending platforms are also subject to liquidation due to a flash crash. DeFi is still relatively new, and there are always unforeseen risks with new financial products.
Always do plenty of your own research before engaging with any decentralized finance network.
Pros and cons of Nuo Network
- Fully audited by Quantstamp, reducing the risks of bugs, errors and flash crashes
- Quite limited in the amount of crypto currencies it supports
- There’s no white paper and little information on how the platform works
- Some community members on Reddit complained about unusual liquidations with Nuo’s margin trading.
Make the Best Decision With This Nuo Network Review
Nuo Network presents a viable solution for those looking to borrow, lend, or margin trade. They seek to provide financial services that work for everyone.
We hope this Nuo Network review provides enough insight for you to decide whether to move forward with Nuo—but don't forget to supplement your new knowledge with additional research.
As you're exploring blockchain technology services, let us help you make better, safer financial decisions with reviews, expert articles, and more.
We test products so that you don't have to and offer a comparison shopping marketplace to showcase our analysis. Click here to compare the best crypto loans now.