Kulfi Finance is the first Cardano fixed rate money market. At launch, vaults will be provided for stable asset and plug-in asset pairs, with more vaults added in the future. Louis Raman“By building on Cardano, Kulfi has created an easy way for crypto users to access the benefits of the fixed rate money market,” said Kulfi’s Chief Technical Officer.
Kulfi Finance facilitates fixed-rate lending, borrowing Cardano-native assets at fixed rates/terms through an innovative financial primitive called wTokens. Fixed-rate financing touches all corners of modern financial markets. Kulfi’s technology offers crypto users a way to provide users with stable finances. The Kulfi protocol is the first of its kind on Cardano with its production protocol. Fixed loan/loan rates are an integral part of the traditional financial system, allowing businesses and individuals to better plan their financial future. In the crypto space, however, variable rates are the norm; These variable sizes make it difficult to compare protocols and use DeFi (decentralized finance) for real-world applications. “To make a long-term plan, to borrow money for a house or a car, people need to know what their costs will be – they need fixed rates” Manolis Kyriako, Kulfi consultant on LinkedIn.
Why is fixed rate important in DEFI?
Most money market protocols on DEFI offer a variable rate where the interest rate is usually determined by the supply and demand of the token. As the demand increases, the interest rate increases. As the supply of the token increases, the interest rate decreases, which leads to uncertainty in the crypto market, which leads to the dilemma of fixed rate/term rate demand. Kulfi’s fixed loan product is based on the concept of a zero coupon bond, which pays the full face value on the maturity date and the face value indicates how much money the borrowers will receive on the specified maturity date. Kulfi Finance facilitates borrowers and lenders to agree on a fixed interest rate. Unfortunately, most credit protocols lack this feature and cannot serve as a stable source of credit. Read the Kulfi Whitepaper to learn more about Fixed Rate Protocol.
Kulfi Management Token (KLS)
Kulfi ($KLS Token) is the management token of the Kulfi Protocol. It is Cardano’s native token that owners can use to make decisions, vote and implement changes to Kulfi’s ecosystem of metrics and smart contracts. At the heart of Kulfi are wTokens (Zero Coupon Tokens).
These tools keep track of who owes money in the kulfi stablecoin markets continuously and easily, thus turning the project’s fixed rate system around. KLS is the core native resource and management asset of the Kulfi ecosystem. KLS token is enabled. Pre-seed round And available at a fixed price; For 1 ADA, an investor can claim 200 KLS tokens. KLS holders can participate in critical referendums on Kulfi protocol updates.
Kulfi Token (KLS) and utilities
KLS is a Cardano token running the Kulfi protocol. KLS holders can propose, vote and implement changes to Kulfi system parameters and smart contracts. Each KLS holder gets one vote per KLS held. Verify KLS Token at Pool.pm KLS holders are responsible for managing Kulfi’s on-chain treasury, setting risk and collateral parameters, and voting on any proposed upgrades to Kulfi’s smart contracts. Here’s a short, non-exhaustive list of things KLS holders should propose and vote on:
Propose and evaluate the amendment of the protocol
Access gift for Kulfi borrowers
Embarking on new types of insurance
Setting up liquid payments
Activating new maturities to borrow and borrow various assets
Transaction fees in Kulfi Ecosystem can be paid using KLS tokens.
KLS owners get a percentage of payments made in the Kulfi ecosystem
Loan payment can be done with KLS token
Kulfi Finance Borrowing:
Users on Kulfi Finance can avail fixed term interest rates on their loans. First, borrowers must put up funds as collateral. Then, mint negative wTokens. Negative wToken tokens are representative of borrowed funds in addition to the chosen maturity date at the time of payment. At this stage, borrowers can exchange their negative wToken tokens for cryptocurrency.
Lending at Kulfi Finance:
Users can lend surplus capital to Kulfi’s portfolio, whereby lenders buy assets with positive wTokens that will be worth more than their deposits in the future. The positive wTokens will “grow” over time and be redeemed for currency when they reach full maturity.
Kulfi Dapp users do not need to go through formal authentication processes such as Know Your Customer or KYC processes for users to be completely anonymous.
Participate in the KLS Token pre-seed sale
Kulfi token Pre-seed round It is the first and limited opportunity for the public to get exclusive early access to buy Kulfi Token at 0.005 ADA per KLS token.
Interested participants can follow the link to buy KLS token at affordable price – https://kulfifinance.io/buy
Conclusion
Kulfi Finance solves one of the fundamental problems in the DeFi space. The ability to offer fixed-rate loans makes the DeFi space accessible to more mainstream users and brings in a flood of new users. With Kulfi Finance, a user can borrow against your crypto without worrying about changing interest rates. You may be able to get a fixed-rate mortgage on Kulfi tomorrow!
This is why DeFi is so exciting. Every day there is a new invention that expands the reach of this industry.
Kulfi Finance is believed to have a good chance of becoming one of the leading lending protocols.