Ahead of Vasil, Cardano welcomes first fixed-rate lending protocol

Kulfi Finance is Cardano’s first fixed rate money market. At launch, the vault will be dedicated to stable and pegged asset pairs, with additional his vaults added in the future. Louis LymanKulfi Chief Technology Officer, said:

Kulfi Finance facilitates fixed rate lending, borrowing at fixed rates/terms for Cardano native assets through a revolutionary financial primitive called wTokens. Fixed rate financing touches all edges of modern financial markets. Kulfi technology provides users with the ability to encrypt their path to stable funding. The Kulfi protocol is the first of its kind built on Cardano, and so is the Yield protocol. Fixed lending/borrowing rates are a key component of the traditional financial system, allowing businesses and individuals to better plan their future finances. However, in the world of cryptocurrencies, floating interest rates are the norm. These fluctuating rates make it difficult to compare protocols and use his DeFi (decentralized finance) for real-world applications. “People need to know what their expenses will be in order to plan long term to borrow money for a house or car. We need a fixed interest rate.”

Why fixed interest rates matter for DEFIs

Most of DEFI’s money market protocols typically offer floating interest rates where the interest rate is determined by the demand and supply of tokens. As demand increases, interest rates rise. As the supply of tokens increases, interest rates will drop, creating uncertainty in the crypto market. This dilemma creates the need for fixed/permanent rates. Kulfi Fixed Loan Products are based on the concept of a zero-coupon bond that pays in full at maturity, where the face value represents the amount received by the lender at a fixed maturity date. Kulfi Finance makes it easy for borrowers and lenders to agree on fixed interest rates. Unfortunately, most lending protocols lack this feature and cannot act as a stable source of credit.For more information on fixed rate protocols, please see the Kulfi Whitepaper.

Kulfi Governance Token (KLS)

Kulfi ($KLS token) is the governance token of the Kulfi protocol. This is a Cardano native token that holders can use to propose, vote, and implement changes to Kulfi ecosystem parameters and smart contracts. At the heart of kulfi are wTokens tokens (zero coupon tokens).

These tools bring the project’s fixed rate system full circle. This is to always easily track who owes across the kulfi stablecoin market. KLS is the core native utility and governance asset of the Kulfi ecosystem. KLS token is on pre-seed round Available at a fixed price. For 1 ADA, an investor can claim his 200 KLS tokens. KLS holders can participate in a critical referendum on Kulfi’s protocol upgrade.

Kulfi Token (KLS) and utilities

KLS is the Cardano token that governs the Kulfi protocol. KLS holders can propose, vote on, and implement changes to Kulfi system parameters and smart contracts. Each KLS holder gets her one vote for each KLS she holds. KLS holders who see their KLS tokens on Pool.pm are responsible for managing Kulfi on-chain financials, setting risk and collateral parameters, and voting on Kulfi smart contract upgrade proposals. Below is a short, non-exhaustive list of things KLS holders should propose and vote on:

Proposing and evaluating upgrades to the protocol
Permissions for Kulfi Borrowers
Onboarding of new collateral types
Liquidity fee setting
Activation of new maturities for lending and borrowing various assets
Transaction fees within the Kulfi ecosystem can be paid using KLS tokens
KLS holders earn a percentage of fees paid within the Kulfi ecosystem
Loan repayments can be made in KLS tokens

Borrowing with Kulfi Finance:

Kulfi Finance users can receive fixed interest rates on their loans. First, the borrower must deposit funds as collateral. Then mint the negative wToken. Negative wTokens tokens represent funds borrowed in addition to the maturity date the repayment date is chosen. At this stage, borrowers can trade and exchange negative wTokens tokens for cryptocurrencies.

Loans to Kulfi Finance:

Users can lend their spare capital to the Kulfi Portfolio. As such, lenders buy positive wTokens assets that will yield a higher valuation than the initial deposit at future time points. A positive wToken “matures” over time and becomes redeemable for currency once it reaches maturity.

Kulfi Dapp users do not have to pass standard identification procedures such as Know Your Customer or a KYC process that gives users complete anonymity.

Join the KLS Token Pre-Seed Sale

kulfi token pre-seed round This is your first limited opportunity to get exclusive early access to purchase Kulfi Tokens at 0.005 ADA per KLS Token.

Interested participants can buy KLS tokens at a fair price by following the link – https://kulfinance.io/buy

Conclusion

Kulfi Finance solves one of the fundamental problems in the DeFi space. Being able to offer fixed-rate lending will give more mainstream users access to her DeFi space, influencing a flood of new users. Kulfi Finance allows users to borrow against your cryptocurrency without worrying about interest rate changes. Tomorrow you may be able to get a fixed rate mortgage with Kulfi!

That’s why DeFi is so exciting. Every day there are innovations that expand the scope of this industry.

Kulfi Finance is considered likely to become one of the leading lending protocols.