Kulfi is a decentralized Money Market protocol on Cardano, aiming to provide a full suite of lending products including but not limited to: variable rate lending, fixed rate lending and borrowing. Kulfi Finance’s team brings engineering experience from tech companies like Google, Facebook, and Microsoft, and previously contributed to Cardano.
The Kulfi crypto ecosystem uses a novel protocol to provide borderless and permissionless fixed-term loans and fixed-term interest rates. Kulfi operates using the unique wToken mechanism in conjunction with the native Kulfi Finance Token (KLS).
Importance of Fixed Rate to DEFI
If you want to lend your tokens on the DEFI, you will only be able to do variable rate lending on most protocols. The interest rate is usually determined through supply and demand of the token. When the demand rises, the interest rates go up. When the token supply increases, the interest rate goes down. This mechanism is a pity for borrowers as they need to have certainty about the costs of borrowing. This dilemma produces the need for fixed-rate/term lending, where borrowers and lenders agree on a fixed rate of interest. Unfortunately, most lending protocols lack this feature and cannot serve as a stable source of credit. Kulfi finance solves this problem by providing fixed-rate lending for its users. “Kulfi’s mission is to bring fixed-rate borrowing and lending to Cardano and take DeFi to a more mainstream audience that is interested in use cases beyond just trading and speculation,”
Kulfi Token and Governance
The Kulfi Finance (KLS) token uses the cardano token standard. As such, the KLS token is compactible with many popular Cardano DeFi protocols, wallets, and exchanges.
The primary use case of the Kulfi Finance token (KLS) is as a governing mechanism of the platform. Following the initial launch, the Kulfi Finance team “will provide analysis and parameter recommendations”. However, as the project develops and gains adoption, the team will take a step back. In turn, this will allow KLS token holders to suggest, vote upon, and implement changes within the Kulfi crypto ecosystem. Each single KLS token is representative of one vote. Ergo, the more KLS tokens one holds, the more influence they can have in a vote.
There is quite an extensive list of Kulfi Finance token (KLS) holder governance responsibilities. Notwithstanding, KLS token holders will have full governing capabilities over setting liquidity fees and collateralization and risk parameters. Additionally, holders of the KLS token are responsible for “activating new maturities for lending and borrowing different assets” alongside “managing the Kulfi on-chain treasury”.
The KLS tokens are available on Pre Seed Round at a fixed 1 ADA for 500 KLS,Interest participant can follow the link to purchase KLS token at a fair price- https://kulfifinance.io/buy
Kulfi Finance Fixed Rate Protocol
Borrowing on Kulfi Finance:
Users on Kulfi Finance can receive fixed-term interest rates on their loans. Firstly, borrowers must deposit funds as collateral. Then, mint negative wTokens. The negative wTokens are representative of the funds borrowed in addition to a chosen maturity date when the repayment is due. At this stage, borrowers can trade and exchange their negative wTokens for cryptocurrency.
Lending on Kufli FInance
Users can lend spare capital to Kulfi portfolio, As such, lenders will purchase positive wTokens assets that yield a higher valuation than their initial deposit at a future date. The positive wTokens “matures” over time and becomes redeemable for currency upon reaching full maturity.
wTokens
As the core feature within the Kulfi crypto ecosystem, wTokens provides a reliable and secure way to tokenize future payments. As a result, users can flexibly trade popular cryptocurrencies, with public immutable management of which wallets owe what and at which time. wTokens is a mechanism representative of a deposit of funds plus a fixed-rate interest amount and mutually-agreed repayment date.
Kulfi Protocol Building Blocks
As the core feature within the Kulfi crypto ecosystem, wTokens provides a reliable and secure way to tokenize future payments. As a result, users can flexibly trade popular cryptocurrencies, with public immutable management of which wallets owe what and at which time. wTokens is a mechanism representative of a deposit of funds plus a fixed-rate interest amount and mutually-agreed repayment date.
Kulfi Pre Seed Sale
The KLS token is the utility token that is central to the Kulfi Ecosystem. Investors who would like to acquire KLS tokens at pre seed round can follow the link to make purchase: https://kulfifinance.io/buy
KLS tokens holders will be whitelisted for the Kulfi NFT Pre-Sale.
Kulfi Finance Overview
Kulfi is the first decentralized, Cardano-based protocol for borrowing and lending at fixed rates and fixed terms. The Kulfi protocol permits the neighborhood to jointly make and produce applications that allow lenders, borrowers and merchants to interact with the most versatile decentralized finance protocol on Cardano.
Learn More About Kulfi Finance
Join KLS Pre Seed Sale: https://kulfifinance.io/buy
Website: https://kulfifinance.io
Twitter: https://twitter.com/kulfi_finance
Telegram: https://t.me/+rphyUBMegsU3ZTI0
Discord: https://discord.gg/fzsa8ynF97
Medium: https://medium.com/@Kulfi_finance
Gitbook: https://kulfi.gitbook.io/kulfi-finance-3/
Disclaimer: This is a sponsored press release and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
Source: https://cryptodaily.co.uk/2022/09/kulfi-finance-debuts-a-fixed-rate-money-market-on-cardano-launches-governance-tokens