Ahead of Vasil, Cardano Welcomes Its First Fixed Rate Lending protocol

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 the fixed rate money market.”

Kulfi financing facilitates the lending and borrowing Cardano native asset at fixed rates/Terms through an innovative financial primitive called “wTokens”. Fixed rate financing is available to all corners of modern financial markets. Kulfi technology provides crypto users stable financing. Kulfi Protocol is the first protocol built on Cardano. It also includes its Yield Protocol. 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 use offer variable rates. The interest rate can usually be determined by the supply or demand for the token. The interest rates rise when there is more demand. In order to avoid uncertainty and increase token supply, interest rates go down. The Kulfi fixed-loan product uses the zero coupon bond idea. It pays its full face value at maturity. Face value represents how much the lender receives on that date. Kulfi finance allows lenders and borrowers to reach an agreement on a fixed interest rate. 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 ($KLSToken) is the governance token in the Kulfi Protocol. Cardano native token. It can be used to make proposals, vote, implement smart contracts and modify Kulfi ecosystem parameters. WTokens tokens, which are zero coupon tokens, are the core of kulfi.

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 RoundAvailable at a fixed cost, investors can obtain 200 KLS tokens for one ADA. KLS holders will be able to take part in crucial referendums on Kulfi’s protocol upgrades.

Kulfi Token, KLS and Utilities

KLS token is a Cardano token used to govern the Kulfi protocol. KLS holders are able to propose, vote and then implement modifications to the Kulfi protocol parameters and smart contracts. KLS holders are entitled to one vote. KLS token holders must verify on Pool.pm. KLS holders are responsible for the management of the Kulfi’s on-chain Treasury and setting collateralization and risk parameters. KLS holders also vote on potential upgrades to Kulfi’s smart contracts. Below is a brief, but not exhaustive list of items KLS holders need to vote and propose:

Evaluation and proposal of upgrades
Access Grant for Kulfi Borrowers
Accepting new types of collateral
Set 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 owners earn a share of the Kulfi ecosystem fees
You can repay your loan with the KLS token

Kulfi finance:

Kulfi Finance customers can enjoy fixed-term interest rates when they borrow. First, the borrowers will need to deposit collateral funds. 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 opens up the DeFi market to mainstream users. It will also bring in new users. Kulfi finance allows you to borrow with your crypto, without the need for changing interest rates. You might soon be able take out a Kulfi fixed-rate mortgage!

That’s why DeFi is so exciting. Each day there’s a new technology that extends this industry’s reach.

Kulfi Finance stands a great chance to become a top-rated lending protocol.

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