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Home Platforms AAVE vs Nexo

Compare AAVE vs Nexo

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Definda Score™

The Definda Score is an impartial, objective analysis of platform features.
Staking Yields
3
Loan Rates
9
Established
5
Reviews
7
Risk Management
5
Withdrawals
8
Coverage
3
Support
5
Staking Yields
10
Loan Rates
10
Established
3
Reviews
8
Risk Management
8
Withdrawals
8
Coverage
3
Support
7
Staking Yields
3
Staking Yields
10
Loan Rates
9
Loan Rates
10
Established
5.3
Established
3.5
Reviews
6.7
Reviews
7.8
Risk Management
5
Risk Management
8
Withdrawals
8
Withdrawals
8
Coverage
2.7
Coverage
3.2
Support
5
Support
7

Pros & Cons

tick Very low loan rates available
tick No origination or early redemption fees
tick Interest accrued every second
tick Savings interest payments remain attached to coin even if transferred off platform
tick Fully open source platform
tick One of the largest crypto loan platforms
tick $2,275,420,800 USD currently invested (TVL)
tick Been in business longer than Nexo (Founded 2017 vs 2018)
tick AAVE is decentralised, but Nexo is not
tick Has less assets under management than Nexo
tick Know your customer checks are required on AAVE but not on Nexo
tick Very simple & easy to use
tick No hidden fees
tick Interest paid daily
tick Earn higher savings rates by being paid interest in Nexo tokens
tick Earn further daily interest on accumulated Nexo tokens
tick Further interest rate enhancements for fixed terms of 1 to 12 months
tick Instant access accounts available for all currencies
tick No minimum monthly repayment amount on loans
tick Funds immediately start earning interest as soon as they are deposited
tick Proof of reserves verified by independent accountant
tick Advanced products available for high value investors
tick Nexo Pro provides an advanced exchange with prices aggregated from multiple third party exchanges
tick Higher average review rating than AAVE (78% vs 67%)
tick More reviews than AAVE (1,247 vs 9 reviews)
tick Higher rating on Trustpilot than AAVE (4.7 vs 2.5 stars)
tick Fiat exchange available on Nexo but not on AAVE
tick Pro exchange marketplace available on Nexo but not on AAVE
tick Margin trading available on Nexo but not on AAVE
tick Instantly buy crypto with fiat on Nexo but not on AAVE
tick Futures exchange available on Nexo but not on AAVE
tick Nexo uses cold storage crypto wallets but AAVE does not
tick Nexo uses two factor authentication but AAVE does not
tick Has 24/7 support but AAVE doesn't
tick Invests in liquidity pools but AAVE doesn't
tick Invests in DeFi products but AAVE doesn't
tick Interface supports French, Korean, Japanese, Turkish, Portuguese-Portuguese, Spanish, Simplified Chinese, Russian and German whereas AAVE doesn't
Staking Rates
tick Nexo will pay interest on 3 fiat currency deposits not offered by AAVE:
Euros (EUR)
Pounds Sterling (GBP)
US Dollars (USD)
More ...
tick Nexo will pay interest on 6 stable coin deposits not offered by AAVE:
2 more stakings rates pros ...
cross Interface is a bit complex and confusing for amateur users
cross Transaction (gas) fees on the Ethereum network can be high, but AAVE does support a number of much cheaper Ethereum sidechains including Polygon and Avalanche
cross As of Dec 2022 not available to customers in the US
cross Lack of transparency about where company is located
cross Slow customer service with no phone option
cross You no longer control access to any crypto with your own private wallet key
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Withdrawals

Withdrawal Time
Less than 1 hour
Withdrawal Time
Less than 1 hour
Withdrawal Score
8
Withdrawal Score
8
Withdrawals Experience

The AAVE platform is fully decentralised and all deposits and withdrawls are handled completely automatically. This means withdrawls are very fast, and simply depend on the speed of the Ethereum network or side chain. There are no records of AAVE withdrawls being halted or frozen.

Withdrawals Experience

Nexo does not use separate savings wallets, so all crypto deposits immediately start earning interest. This means that when you need to make a withdrawl there is no need first transfer funds our of your savings account before then withdrawing them from the platform. This can be a significant time saving compared to other platforms.

In our tests, withdrawls from the Nexo platform were very smooth. The process is automated, so a withdrawl request is processed by Nexo within minutes of you making it. The total withdrawl time then just depends on the network speed. Typically most withdrawls in our tests were completed in well under an hour.

Nexo has never frozen withdrawls on any of its currencies and it claims to hold sufficient liquid funds at any point in time to handle anticpiated requests.

Withdrawls attract no fees for your first few withdrawls. This means that Nexo will pay the network transaction fee on your behalf. After the first couple of free withdrawls every month you will then have to start paying this fee. Nexo does not charge any additional withdrawl fees on top of the network fee. Your number of free withdrawls increases with your Nexo loyalty level.

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Risk

Risk Management Score
5
Risk Management Score
8
Risk Management

AAVE is itself a liquidity pool and some people consider this entire ecosystem to be higher risk. Having said this, AAVE's system has held up well to date, with no major hacks or security breaches.

AAVE is complex product and there remains a risk of a major bug or vulnerability in the code. To counteract this risk AAVE's protocol code is open source so it can be reviewed by anybody, plus it has been through multiple security audits. Finally, there is and active bug bounty campaign with rewards of up to $250,000 for the identification of a critical code issue.

The other key area of risk is in the loan liquidation process. In the event that a loan needs to be liquidated it may not be possible to generate sufficient funds through the sale of the collateral to cover the loan. For example there may be insufficient in the collateral token marketplace to realise the expected value of the collateral.

Risk Management

Nexo has contracted with Armanino, a top 20 US accounting firm, to independently audit Nexo's assets and customer liabilities and to verify that these assets are greater than the liabilities. This verification can be checked live on Armanino's website.

Nexo has £775m of insurance on custodial assets, spread across a number of custodians including BitGo, Ledger Vault, Bakkt and others.

Nexo claims to insist on overcollateralisation on all loans that it makes, even to the biggest borrowers. This means that Nexo should always hold assets great then a borrower's debt, so the debt could be paid off in full by using the collateral at any time.

Nexo has contracted with Armanino, a top 20 US accounting firm, to independently audit Nexo's assets and customer liabilities and to verify that these assets are greater than the liabilities. This verification can be checked live on Armanino's website.

Nexo has £775m of insurance on custodial assets, spread across a number of custodians including BitGo, Ledger Vault, Bakkt and others.

Nexo claims to insist on overcollateralisation on all loans that it makes, even to the biggest borrowers. This means that Nexo should always hold assets great then a borrower's debt, so the debt could be paid off in full by using the collateral at any time.

Nexo states that its investment strategy is market neutral, i.e. it is not speculating on the potential increase in certain assets. Overall Nexo appears to have one of the most prudent financial risk management strategies out there and they have an impecable track record having never suffered any hack or ever frozen withdrawls. There does however always remain some risk with any crypto based business, such as a severe lack of liquidity in the markets of the loan collateral held.

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Reviews

67% based on 9 reviews
78% based on 1,247 reviews
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Staking Rates

The table below compares the staking rates for AAVE and Nexo.
Fiat Currencies
Stable Coins
Crypto Currencies
Loading rates ...
Fiat Currencies
EUR Euros
5% - 15%
5% - 15%
GBP Pounds Sterling
5% - 15%
5% - 15%
USD US Dollars
5% - 15%
5% - 15%
Stable Coins
BUSD BUSD
8% - 14%
8% - 14%
DAI Dai
8% - 14%
8% - 14%
TUSD TrueUSD
8% - 14%
8% - 14%
USDC USDC
8% - 14%
8% - 14%
USDP Pax Dollar
8% - 14%
8% - 14%
9% - 16%
9% - 16%
Crypto Currencies
AAVE Aave
0.25% - 4%
0.25% - 4%
ADA Cardano
4% - 8%
4% - 8%
APE ApeCoin
4% - 9%
4% - 9%
ATOM Cosmos
6% - 11%
6% - 11%
AVAX Avalanche
7% - 12%
7% - 12%
16% - 30%
16% - 30%
4% - 8%
4% - 8%
BNB BNB
4% - 8%
4% - 8%
BTC Bitcoin
3% - 7%
3% - 7%
DOGE Dogecoin
<&nbsp;0.01% - 3%
<&nbsp;0.01% - 3%
DOT Polkadot
10% - 15%
10% - 15%
EOS EOS
4% - 8%
4% - 8%
ETH Ethereum
4% - 8%
4% - 8%
FTM Fantom
2% - 7%
2% - 7%
KSM Kusama
7% - 12%
7% - 12%
LINK Chainlink
3% - 7%
3% - 7%
LTC Litecoin
4% - 8%
4% - 8%
MATIC Polygon
1% - 7%
1% - 7%
5% - 10%
5% - 10%
NEXO Nexo
4% - 12%
4% - 12%
PAXG PAX Gold
3% - 7%
3% - 7%
SOL Solana
4% - 8%
4% - 8%
TRX TRON
4% - 8%
4% - 8%
XLM Stellar
4% - 8%
4% - 8%
XRP XRP
4% - 12%
4% - 12%
Loading rates ...
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Company

Legal name
Aave SAGL
Legal name
Nexo Services OÜ
Year founded
2017
Year founded
2018
Country incorporated in
222
Country incorporated in
77
Headquarters country
1
Headquarters country
42
Platform token
Aave
Platform token
Nexo
Decentralised
tick Yes
Decentralised
cross No
Open source
tick Yes
Open source
Number of employees
50-100
Number of employees
101-250
Number of users
Number of users
100,000,000
Total assets under management
$18,000,000,000USD
Total assets under management
$5,000,000,000USD
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Products

Savings accounts
tick Yes
Savings accounts
tick Yes
Loans
tick Yes
Loans
tick Yes
Crypto to crypto exchange
tick Yes
Crypto to crypto exchange
tick Yes
Fiat to crypto exchange
cross No
Fiat to crypto exchange
tick Yes
Pro exchange marketplace
cross No
Pro exchange marketplace
tick Yes
Peer to peer exchange
cross No
Peer to peer exchange
cross No
Margin trading
cross No
Margin trading
tick Yes
Corporate accounts
tick Yes
Corporate accounts
tick Yes
Instantly buy crypto with fiat
cross No
Instantly buy crypto with fiat
tick Yes
Integrated crypto wallet
tick Yes
Integrated crypto wallet
tick Yes
Crypto withdrawals to private wallet
tick Yes
Crypto withdrawals to private wallet
tick Yes
Fast account verification
tick Yes
Fast account verification
tick Yes
Futures exchange
cross No
Futures exchange
tick Yes
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Security

Insurance level
Insurance level
$775,000,000USD
Cold storage
cross No
Cold storage
tick Yes
Cold storage custodian
Cold storage custodian
BitGo, LedgerVault
Crypto security standard
Crypto security standard
Level 3
Two factor authentication
cross No
Two factor authentication
tick Yes
Loan over collateralisation percent
Loan over collateralisation percent
200%+
Credit check
cross No
Credit check
cross No
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Support

24/7 support
cross No
24/7 support
tick Yes
Email support
tick Yes
Email support
tick Yes
Phone support
cross No
Phone support
cross No
Chat support
cross No
Chat support
cross No
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Fees

Exchange fees
0% exchange fees
Exchange fees
0% exchange fee
Fiat deposit fee
Fiat deposit fee
tick Free
Fiat withdrawal fee
Fiat withdrawal fee
tick Free
Crypto deposit fee
0
Crypto deposit fee
tick Free
Withdrawal process
The AAVE platform is fully decentralised and all deposits and withdrawls are handled completely automatically. This means withdrawls are very fast, and simply depend on the speed of the Ethereum network or side chain. There are no records of AAVE withdrawls being halted or frozen.
Withdrawal process
Nexo does not use separate current (chequeing) and savings accounts. All deposits are automatically held in savings accounts and start earning interest immediately. This means that when you need to make a withdrawl there is no need to first move the funds out of the savings account and in to the current account. Withdrawls are processed automatically so the time from you initiating the withdrawl on Nexo to the time the withdrawl action is requested on the blockchain is normally just a minute or so. The time for the withdrawl to be confirmed on the blockchain depends on the specific cryptocurrency. There is a withdrawl limit of $500,000 per day. Your first couple of withdrawls every month attract no fees. This means Nexo is effectively paying the network fee for you. The number of free withdrawls depends on your loyalty level. In our tests, withdrawls from Nexo have been consistently fast and effortless. Nexo has never frozen withdrawls on any of its currencies.
Crypto withdrawal fee
0
Crypto withdrawal fee
Withdrawl fees vary by loyalty level:
Base level - 1 free crypto withdrawl per month
Silver - 3 free crypto withdrawls per month
Gold - 5 free crypto withdrawls per month
Platinum - 15 free crypto withdrawls per month
Savings crypto account withdrawal limit
Unlimited
Savings crypto account withdrawal limit
$500,000 per day
Loan crypto account withdrawal limit
Unlimited
Loan crypto account withdrawal limit
$2,000,000 per day
Savings fiat account withdrawal limit
Savings fiat account withdrawal limit
$100,000 per day
Loan fiat account withdrawal limit
Loan fiat account withdrawal limit
$2,000,000 per day
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Investment Strategy

Liquidity pools
tick Yes
Liquidity pools
cross No
DeFi products
tick Yes
DeFi products
cross No
Unsecured loans
Unsecured loans
cross No
Independent proof of reserves
Independent proof of reserves
tick Yes
Proof of reserves
Proof of reserves
Nexo has contracted with Armanino, a top 20 Us accounting firm, to independently audit Nexo's assets and customer liabilities and to verify that the assets exceed customer liabilities. This verification can be checked live on Armanino's website.
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Registrations & Regulation

Know your customer
cross No
Know your customer
tick Yes
Regulators
Regulated in the UK by the Financial Conduct Authority
Regulators
Regulated in Estonia, Switzerland and the Cayman Islands
Financial Conduct Authority
tick Yes
Financial Conduct Authority
Financial Crimes Enforcement Network
Financial Crimes Enforcement Network
tick Yes
ISO 27001 Information Security Management
ISO 27001 Information Security Management
tick Yes
System and Organization Controls (SOC2) Type 1
System and Organization Controls (SOC2) Type 1
tick Yes
System and Organization Controls (SOC2) Type 2
System and Organization Controls (SOC2) Type 2
tick Yes
CryptoCurrency Security Standard (CCSS) Level 3
CryptoCurrency Security Standard (CCSS) Level 3
tick Yes
Kansas - Office of the State Bank Commissioner - Supervised Loan License
Kansas - Office of the State Bank Commissioner - Supervised Loan License
tick Yes
New Hampshire - Banking Department - Money Transmitter License
New Hampshire - Banking Department - Money Transmitter License
tick Yes
Oregon - Division of Financial Regulation - Money Transmitter License
Oregon - Division of Financial Regulation - Money Transmitter License
tick Yes
Arizona - Department of Insurance and Financial Institutions Consumer Lender License
Arizona - Department of Insurance and Financial Institutions Consumer Lender License
tick Yes
California - Department of Financial Protection and Innovation - Financial Lender License
California - Department of Financial Protection and Innovation - Financial Lender License
tick Yes
District of Columbia - Department of Insurance, Securities and Banking - Money Lender License
District of Columbia - Department of Insurance, Securities and Banking - Money Lender License
tick Yes
Idaho - Department of Finance - Regulated Lender License
Idaho - Department of Finance - Regulated Lender License
tick Yes
Illinois - Department of Financial and Professional Regulation - Consumer Instalment Loan License
Illinois - Department of Financial and Professional Regulation - Consumer Instalment Loan License
tick Yes
Minnesota - Department of Commerce - Regulated Loan Company License
Minnesota - Department of Commerce - Regulated Loan Company License
tick Yes
Mississippi - Department of Banking and Consumer Finance - Money Transmitter License
Mississippi - Department of Banking and Consumer Finance - Money Transmitter License
tick Yes
Missouri - Division of Finance - Sale of Checks & Money Transmitter License
Missouri - Division of Finance - Sale of Checks & Money Transmitter License
tick Yes
Montana - Division of Banking and Financial Institutions - Consumer Loan License
Montana - Division of Banking and Financial Institutions - Consumer Loan License
tick Yes
New Hampshire - Banking Department - Small Loan Lender License
New Hampshire - Banking Department - Small Loan Lender License
tick Yes
Oregon - Division of Financial Regulation - Consumer Finance License
Oregon - Division of Financial Regulation - Consumer Finance License
tick Yes
Utah - Department of Financial Institutions - Registered Lender
Utah - Department of Financial Institutions - Registered Lender
tick Yes
Wyoming - Department of Audit - Supervised Lender License
Wyoming - Department of Audit - Supervised Lender License
tick Yes
Financial Transactions and Reports Analysis Centre of Canada - Money Service Business Registration
Financial Transactions and Reports Analysis Centre of Canada - Money Service Business Registration
tick Yes
Swiss Financial Market Supervisory Authority - Affiliate Member of the SRO "So-Fit" Geneva
Swiss Financial Market Supervisory Authority - Affiliate Member of the SRO "So-Fit" Geneva
tick Yes
Australian Securities and Investment Commission - Registration as Foreign Company
Australian Securities and Investment Commission - Registration as Foreign Company
tick Yes
Australian Transaction Reports and Analysis Centre - Registration as Reporting Company
Australian Transaction Reports and Analysis Centre - Registration as Reporting Company
tick Yes
Companies Registration - Trust or Company Service Provider License
Companies Registration - Trust or Company Service Provider License
tick Yes
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Important Message Definda does not provide any financial advice. All information is provided for research purposes only. DeFi is a rapidly evolving industry. Most businesses in the sector are very young and it is possible that some of them could go out of business in the future. Such an event could result in the loss of your investment. You should do your own research or consult a financial advisor before investing any money. Please read and satisfy yourself with our terms before continuing to use our website. We offer a free impartial comparison service of savings, loans and other DeFi products. We may receive a small commission from some of the companies listed, but this never influences our rankings. If you spot any errors in the information listed then please contact us at info@definda.com.

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