Kulfi Finance, the first fixed-rate Cardano money market, is now open. Initial vaults will only be used for pegged and stable-asset pairs. Additional vaults can be added later. Louis Ryman, Chief technical officer at Kulfi, stated “By building upon Cardano, Kulfi has created a simple way for crypto users to access the benefits of fixed rate money market.”
Kulfi finance allows fixed-rate borrowing, and the purchase of Cardano’s native assets at fixed rates. Terms are also possible through an innovative financial primitive known as wTokens. Fixed rate financing is a way to access all corners of modern financial markets. Kulfi technology offers crypto users a means to secure financing. Kulfi protocol, which is built on Cardano and its Yield Protocol, are the first. Fixed borrowing/lending rates are an essential part of the traditional financial system. This allows individuals and companies to make better decisions about their finances. Variable rates in crypto are common. These fluctuating rates can make it hard to compare protocols or use DeFi (Decentralized Financing) for real-world purposes. “In order to plan for the long-term, to borrow money for a house or car, people need to know what their costs will be – they need fixed rates” Manolis Kyriacou, Kulfi advisor stated on LinkedIn.
DEFI Fixed Rates: What is important?
Many money market protocols that DEFI offers a variable-rate interest rate. The supply and demand for the token determine the rate. Interest rates increase when the demand for the token increases. The interest rates rise when the supply of tokens increases. This creates uncertainty in the cryptocurrency market and leads to the necessity for fixed rate/term rates. Kulfi’s fixed loan product relies on the zero-coupon bond concept. This pays full face on maturity. The face value is the amount that the lenders will receive at that fixed date. Kulfi financing allows both lenders and borrowers the ability to agree upon a fixed rate interest. This is a feature that most lending protocols do not have and can’t provide stable credit. Learn more about fixed-rate protocols by reading the Kulfi Whitepaper
Kulfi Governance Token (KLS)
Kulfi ($KLS token) is the governance token for the Kulfi protocol. Cardano native token, it can be used for voting, proposals and to implement changes to the Kulfi ecosystem and smart contracts. The heart of Kulfi is the wTokens tokens (0 coupon tokens).
These instruments make the project’s fixed-rate system go round, as they constantly and simply keep track of who owes across kulfi stablecoin markets. KLS token is the core utility of Kulfi and a governance asset. KLS token: Pre Seed RoundInvestors can get 200 tokens of KLS for a fixed price. KLS holders will be able to take part in crucial referendums on Kulfi’s protocol upgrades.
Kulfi Token (KLS) and Utilities
KLS, a Cardano token which governs Kulfi protocol. KLS holders have the ability to vote, propose and even implement smart contract and system changes. KLS holders get one vote for every KLS they own. KLS token holders can verify their KLS tokens on Pool.pm. They will manage the Kulfi On-chain Treasury, set risk and collateralization parameters and vote on proposed Kulfi Smart Contract upgrades. This is a list that KLS token holders can propose and vote for:
Evaluation and proposal of upgrades
Access Grant for Kulfi Borrowers
New collateral type acceptance
Establishing liquidity fees
For lending or borrowing other assets, activate new maturities
KLS tokens can be used to pay transaction fees in the Kulfi Ecosystem
KLS holders receive a share of any fee that is paid to the Kulfi Ecosystem
You can repay your loan with the KLS token
Kulfi Finance customers can enjoy fixed-term interest rates when they borrow. To secure their loans, borrower must first deposit money. Then, mint negative wTokens. Tokens that are negative in nature will represent funds borrowed, as well as the date of repayment. This stage allows borrowers to trade their negative tokens and convert them for cryptocurrency.
Lending on Kulfi Finance:
Kulfi users can loan spare capital. Lenders will then purchase positive wTokens assets at a later date that have a higher value than the initial deposit. The positive wTokens “matures” over time and becomes redeemable for currency upon reaching full maturity.
Kulfi Dapp users do not have to go through the KYC or Know Your Customer procedures. This allows them full anonymity.
Take part in the KLS Token Pre-Seed Sale
Kulfi token Pre-Seed RoundThis is the limited first opportunity to buy Kulfi token for 0.005 ADA each KLS token.
Interested participants can follow the link to purchase KLS token at a fair price – https://kulfifinance.io/buy
Kulfi Finance addresses one of the most fundamental issues in the DeFi sector. Fixed-rate lending will make the DeFi area more accessible for mainstream users. This will result in an increase in users. Kulfi Finance allows users to borrow crypto against their cryptocurrency without having to worry about changes in interest rates. Kulfi may allow you to get a fixed rate mortgage tomorrow!
That’s why DeFi is so exciting. Each day there’s a new technology that extends this industry’s reach.
Kulfi Finance could be a leader in lending.