Kulfi Finance Debuts A Fixed Rate Money Market on Cardano,…

Kulfi is a decentralized money market protocol on Cardano, aiming to provide a full suite of lending products including but not limited to: floating rate loans, fixed rate loans and loans. The Kulfi Finance team brings engineering expertise from tech companies such as Google, Facebook and Microsoft and previously contributed to Cardano.

The Kulfi crypto ecosystem uses a new protocol to provide term loans and term interest rates without borders and without authorization. Kulfi operates using the unique wToken mechanism in combination with the native Kulfi Finance Token (KLS).

Importance of the fixed rate for DEFI

If you want to lend your tokens on the DEFI, you will only be able to make floating rate loans on most protocols. The interest rate is usually determined by the supply and demand of the token. When demand increases, interest rates go up. As the token supply increases, the interest rate drops. This mechanism is a shame for the borrowers as they must have certainty about the loan costs. This dilemma produces the need for fixed rate / term loans, in which borrowers and lenders agree on a fixed interest rate. Unfortunately, most lending protocols do not have this feature and cannot serve as a stable source of credit. Kulfi finance solves this problem by providing fixed rate loans to its users. “Kulfi’s mission is to bring fixed rate loans and loans to Cardano and bring DeFi to a more mainstream audience interested in use cases beyond simple trading and speculation.”

Token Kulfi and governance

The Kulfi Finance (KLS) token uses the cardano token standard. As such, the KLS token is compactable with many popular Cardano DeFi protocols, wallets, and exchanges.

The primary use case of the Kulfi Finance (KLS) token is as a platform governance mechanism. After the initial launch, the Kulfi Finance team “will provide analysis and advice on parameters”. However, as the project develops and gains adoption, the team will step back. In turn, this will allow KLS token holders to suggest, rate and implement changes within the Kulfi crypto ecosystem. Each individual KLS token is representative of one vote. Ergo, the more KLS tokens you hold, the more influence they can have in a vote.

There is a rather large list of governance responsibilities of the Kulfi Finance (KLS) token holder. Despite this, KLS token holders will have full governance capabilities on defining liquidity fees and collateral and risk parameters. In addition, KLS token holders are responsible for “triggering new deadlines for lending and hiring various assets” along with “Kulfi chain treasury management”.

KLS tokens are available on Round pre-seed at 1 fixed ADA for 500 KLS, the interest participant can follow the link to buy the KLS token at a fair price- https://kulfifinance.io/buy

Kulfi Finance Fixed Rate Protocol

Borrow on Kulfi Finance:

Users on Kulfi Finance can receive forward interest rates on their loans. First, borrowers have to deposit funds as collateral. So, coin negative wTokens. Negative wTokens are representative of borrowed funds plus a chosen due date on which repayment is due. At this stage, borrowers can trade and exchange their negative wTokens for cryptocurrency.

Loan on Kufli Finance

Users can lend reserve capital to the Kulfi wallet, as such, lenders will purchase positive wTokens assets that yield a higher valuation than their initial deposit at a future date. Positive wTokens “mature” over time and become convertible to currency upon reaching full maturity.

wToken

As a main 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 immutable public management of which wallets they owe what and at what time. wTokens is a mechanism representative of a deposit of funds plus a fixed rate interest amount and an agreed repayment date.

Building blocks of the Kulfi protocol

As a main 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 immutable public management of which wallets they owe what and at what time. wTokens is a mechanism representative of a deposit of funds plus a fixed rate interest amount and an agreed repayment date.

Sale of Kulfi seeds

The KLS Token is the central utility token for the Kulfi ecosystem. Investors who wish to acquire KLS tokens on round pre-sowing you can follow the link to make the purchase: https://kulfifinance.io/buy

KLS token holders will be whitelisted for the Kulfi NFT presale.

Kulfi Finance overview

Kulfi is the first Cardano-based decentralized protocol for borrowing at fixed rates and fixed terms. The Kulfi protocol allows the neighborhood to jointly build 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 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

Disclaimer: Cardano Feed is a decentralized news aggregator that allows journalists, influencers, publishers, publishers, websites, and community members to share news about the Cardano ecosystem. The user should always do their own research and none of these articles are financial advice. The content is for informational purposes only and does not necessarily reflect our opinion.

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