Compare AQRU vs Nexo

Crypto withdrawls on AQRU are not instant. They are processed daily at 2pm UTC. This means that if you make a withdrawl request at 3pm UTC you will have to wait until 2pm UTC the next day before it is processed. Once withdrawl requests begin processed at 2pm UTC they normally seem to complete by 3pm UTC in our experience.

If you have yoru funds invested in one of AQRU's investment products you will first need to withdraw your funds back in to your AQRU crypot wallet by selling the investment product. Only then can you make a withdrawl request to an external wallet.

Crypto withdrawls also attract fees. There is a $10 USD fee for Bitcoin withdrawls and a $20 USD fee for all other crypto withdrawls. There is no fee for fiat withdrawls.

There is no record of AQRU undertaking a blanket freeze of withdrawls across the platform. Some users have experienced delays in withdrawls as AQRU has been obliged to to ask further questions about the transfer to comply with its regulatory obligations.

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.

AQRU stores its uninvested crypto with a third party custodian, Fireblocks, which ensures that these funds are well protected against loss due to hacking and fraud. In addition AQRU has insurance of $30 million against crypto losses.

AQRU has implemented two factor authentication within it's app to increase security levels.

What remains unclear is AQRU's investment strategy that is uses to generate yield. AQRU launched with market leading interest rates on its savings accounts which suggests that a higher level of risk was being taken with its internal investment strategy. Having said this, AQRU has now significantly reduced its savings rates and AQRU has never frozen withdrawls or suffered any outage or loss of customer funds.

AQRU have stated that they lend funds to institutions in return for yield. AQRU states that they usually demand collateralisation on thse loans. The level of collateralisation is not stated, and it is concerning if some of their loans are not fully collateralised. Ideally they would be requiring well over 100% over-collateralisation on all loans so that in all circumstances AQRU holds sufficient assets to repay the loan in the event of a default by the borrower.

AQRU offers a blended stablecoin investment product. This product invests in USDC, DAI and some other stablecoins which are not stated. Diversifying the fund across a number of stablecoins reduces risk, but the lack of full transparancy means there could be some high risk coins included.

AQRU offers enhanced savings ratings on USDC deposits when locked up for a 90 day term. This is through a deal with Maple Finance. AQRU provide a detailed run down of this deal here. The article discusses Maple Finance's risk management strategy, including the diversification and overcollateralisation of loans made by Maple. However, the managed underwriting of some loans is also discussed, which presumably adjusts collateral requirements depending on the credit status of the borrower. There is a separate fund that can be called upon in the case of borrower defaults. Overall AQRU and Maple are offering a good level of transparency on how their lending strategy works. However in the event of large number of depositors making withdrawal requests, it is possible that liquidity could still be an issue.

Some crypto platforms can provide proof of reserves prepared by a third party. This proof of reserves proves that the platform holds more assets than customer liabilities. AQRU does not currently provide proof of reserves, but hopefully this is something that they will look to implement in the future.

Overall, AQRU is a young platform backed by a solid, experienced team. They have a simple model and appear to be aiming for transparency. As the platform continues to grow we expect further reasurances on their investment strategy will be provided.

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.