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

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Kulfi Finance is the first Cardano fixed rate money market. At launch, the vault will be dedicated to stable-asset and pegged-asset pairs, with additional vaults to be 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 currency market,” said Kulfi’s Chief Technical Officer.

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Kulfi Finance facilitates Fixed-Rate Lending, an innovative financial primitive called wTokens for borrowing Cardano Native Assets at fixed rates/terms. Fixed-rate financing touches all sides of modern financial markets. Kulfi technology will provide a way of stable financing to crypto users. The Kulfi Protocol is the first of its kind built on Cardano along with its Yield Protocol. Fixed lending rates are an important element of the traditional financial system, allowing businesses and individuals to better plan their future finances. In the crypto space, however, variable rates are the norm; These fluctuating rates make it difficult to compare protocols for real-world applications and those using DeFi (decentralized finance). “To make long-term plans, to borrow money for a house or car, people need to know what it will cost – they need fixed rates” Manolis KyriakouKulfi Advisor said on LinkedIn.

Why fixed rate is necessary in DEFI?

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Most money market protocols on DEFI offer a variable rate that is the interest rate usually determined through the supply and demand of the token. When demand increases, interest rates rise. When the supply of tokens increases, the interest rate decreases to bring uncertainty to the crypto market, this dilemma creates the need for a fixed rate/period rate. The Kulfi fixed loan product is based on the zero coupon bond concept that pays the full face value on its maturity date, with the face value indicating how much money the lenders get on the fixed maturity date. Kulfi Finance provides the facility to borrowers and lenders to agree on a fixed interest rate. Unfortunately, most lending protocols lack this feature and cannot serve as a stable source of credit. Read Kulfi Whitepaper to know more about Fixed Rate Protocol.

Kulfi Governance Token (KLS)

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Kulfi ($KLS Token) is the governance token of Kulfi Protocol. It is a Cardano native token that holders can use to make proposals, votes, and implement changes to the Kulfi ecosystem parameters and smart contracts. At the center of the Kulfi are wToken tokens (Zero Coupon Tokens).

These tools round out the project’s fixed-rate system, as they continuously and easily keep track of who is owed on the Kulfi stablecoin markets. KLS is a key core utility and governance asset of the Kulfi ecosystem. KLS token is on pre seed round and available at a fixed cost; For 1 ADA, an investor can claim 200 KLS tokens. KLS holders will be able to participate in the crucial referendum on protocol upgrade of Kulfi.

Kulfi Token (KLS) and Utilities

KLS is a Cardano token that governs 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 he has. Verify KLS Token pool. pm KLS holders will be responsible for managing the Kulfi on-chain treasury, setting risk and collateralization parameters, and voting on any proposed upgrades to the Kulfi smart contracts. Here is a short, non-exhaustive list of things KLS holders will need to propose and vote on:

Protocol upgrade proposal and evaluation
Access Grant for Kulfi Takers
Incorporation of new collateral types
setting liquidity charges
Activating 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 the fee paid within the Kulfi ecosystem
Loan repayment can be done with KLS tokens

Lending on Kulfi Finance:

Users of Kulfi Finance can avail fixed tenure interest rates on their loans. First, borrowers must deposit money as collateral. Then, mint negative wTokens. Negative wTokens tokens represent borrowed funds other than a chosen maturity date when repayment is due. At this stage, borrowers can trade and exchange their negative wTokens tokens for cryptocurrency.

Lending on Kulfi Finance:

Users can lend additional capital to Kulfi Portfolio, as such, lenders will buy positive wTokens assets that will receive a higher valuation than their initial deposit at a future date. Positive wTokens “mature” over time and become redeemable for currency upon reaching full maturity.

Kulfi Dapp users are not required to go through standard identification process like Know Your Customer or KYC process, thereby allowing users to be completely anonymous.

Participate in KLS Token Pre Seed Sale

kulfi token pre seed round This is the first and limited opportunity for the public to get exclusive early access to buy Kulfi tokens at 0.005 ADA per KLS token.

Interested participants can follow the link to buy KLS tokens at reasonable prices – https://kulfifinance.io/buy

conclusion

Kulfi Finance solves one of the fundamental problems in the DeFi space. The ability to provide fixed-rate lending will make the DeFi space accessible to more mainstream users and will bring in an influx of new users. At Kulfi Finance a user can borrow against your crypto without worrying about the change in interest rates. Tomorrow you will be able to take out a fixed rate mortgage on Kulfi!

That’s why DeFi is so exciting. Every day, there is an innovation that expands the reach of this industry.

It is believed that Kulfi Finance has a good chance of becoming one of the leading lending protocols.





Credit : www.newsbtc.com

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