Ahead of Vasil, Cardano Welcomes Its First Fixed Rate Lending protocol
September 13 2022 - 04:27AM
NEWSBTC
Kulfi Finance is the first Cardano fixed-rate money market. At
launch, vaults will be dedicated to stable-asset and pegged-asset
pairs, with additional vaults added in the future. Louis
Ryman, Chief technical officer at Kulfi, stated “By building upon
Cardano, Kulfi has created a simple way for crypto users to access
the benefits of fixed rate money market.” Kulfi finance facilitates
fixed-rate lending, borrowing of Cardano native assets at fixed
rates / Terms through an innovative financial primitive called
wTokens. Fixed-rate financing touches all the edges of the modern
financial markets. Kulfi technology will provide the ability to
crypto users with a way to stable financing. Kulfi protocol is a
first of its kind built on Cardano, along with its Yield Protocol.
Fixed lending/borrow rates are a crucial 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 and use DeFi (Decentralized Finance) for
real-world applications. “In order to plan for the long-term, to
borrow money for a house or car, people need to know what their
costs will be – they need fixed rates” Manolis Kyriacou, Kulfi
advisor stated on LinkedIn. Why Fixed Rate is Important in DEFI
Most money market protocols on DEFI offer a variable rate which the
interest rate is usually determined through the 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 bringing
uncertainty to the crypto market, this dilemma produces the need
for a fixed-rate/term rate. Kulfi fixed loan product is based on
the zero coupon bond concept which pays the full face value on its
maturity date, with face value representing how much money the
lenders receive at the fixed maturity date. Kulfi finance
facilitates borrowers and lenders to agree on a fixed rate of
interest. Unfortunately, most lending protocols lack this feature
and cannot serve as a stable source of credit. Read Kulfi
Whitepaper to learn more about the fixed rate protocol. Kulfi
Governance Token (KLS) Kulfi ($KLS Token) is the governance token
of the Kulfi protocol. It is a Cardano native token that holders
can use for proposals, votes, and implementing changes to Kulfi
ecosystem parameters and smart contracts. At the heart of kulfi are
wTokens tokens (zero coupon tokens). These instruments make the
project’s fixed-rate system go round, as they constantly and simply
keep track of who owes across kulfi stablecoin markets. KLS is a
core native utility and governance asset of the Kulfi ecosystem.
The KLS token is on Pre Seed Round and available at a fixed price;
for 1 ADA, an investor can claim 200 KLS tokens. KLS holders will
be able to take part in crucial referendums on Kulfi’s protocol
upgrades. Kulfi Token (KLS) and Utilities KLS is a 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 one vote per KLS that they hold.
Verify KLS token on 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: Proposing
and evaluating upgrades to the protocol Access Grant for Kulfi
Borrowers Onboarding new collateral types Setting liquidity fees
Activating new maturities for lending and borrowing different
assets Transaction fees within the Kulfi Ecosystem can be paid
using KLS tokens KLS holders earn a percentage of fee paid within
the Kulfi Ecosystem Loan repayment can be done with KLS token
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 tokens 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
tokens for cryptocurrency. Lending on Kulfi Finance: Users can lend
spare capital to the 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. Kulfi Dapp Users do not need to pass the
standard identification procedures such as Know Your Customer or
KYC processes giving the users full anonymity. Participate in KLS
Token Pre Seed Sale Kulfi token Pre Seed Round is the first and
limited opportunity for the public to gain exclusive early access
to purchase Kulfi token at 0.005 ADA per KLS token. Interested
participants can follow the link to purchase KLS token at a fair
price – https://kulfifinance.io/buy Conclusion Kulfi Finance solves
one of the fundamental problems in the DeFi space. The ability to
provide fixed-rate lending makes the DeFi space accessible to more
mainstream users and will bring in a flood of new users. At Kulfi
finance a user can borrow against your crypto without worrying
about changing interest rates. Tomorrow you might 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.
Cardano (COIN:ADAUSD)
Historical Stock Chart
From Feb 2024 to Mar 2024
Cardano (COIN:ADAUSD)
Historical Stock Chart
From Mar 2023 to Mar 2024