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

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Kulfi Finance is Cardano’s first fixed rate money market. At launch, vaults will be dedicated to stablecoin and pegged asset pairs, with additional vaults added in the future. Louis RymanKulfi’s CTO said, “Building on Cardano, Kulfi has created an easy way for crypto users to access the benefits of the fixed rate money market.”

Kulfi finance facilitates fixed rate lending, the borrowing of native Cardano assets at fixed rates/terms through an innovative financial primitive called wTokens. Fixed rate financing touches all edges of modern financial markets. Kulfi technology will offer crypto users a way to obtain stable funding. The Kulfi protocol is the first of its kind built on Cardano, along with its yield protocol. Fixed lending/borrowing rates are a crucial part 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 a car, people need to know what their costs will be – they need fixed rates,” said Manolis Kyriacou, Kulfi advisor on LinkedIn.

Why the fixed rate is important in DEFI

Most money market protocols on DEFI offer a floating rate whose interest rate is usually determined by the supply and demand of the token. When demand increases, interest rates increase. When the supply of tokens increases, the interest rate drops, which leads to uncertainty in the crypto market, this dilemma produces the need for a fixed rate / term. The Kulfi fixed loan product is based on the concept of a zero-coupon bond that pays full face value on its maturity date, with the face value representing the amount lenders receive on the fixed maturity date. Kulfi finance allows 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’s 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 native Cardano token that holders can use for proposals, voting, and implementing changes to Kulfi ecosystem settings and smart contracts. At the heart of kulfi are wTokens (zero coupon tokens).

These instruments keep the project’s fixed-rate system running, as they constantly and simply keep track of who owes on the kulfi stablecoin markets. KLS is a core native utility and governance asset of the Kulfi ecosystem. KLS token is enabled Pre-seeding tower and available at a fixed price; for 1 ADA, an investor can claim 200 KLS tokens. KLS holders will be able to participate in crucial referendums on Kulfi 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 settings and smart contracts. Each KLS holder gets one vote per KLS they hold. Verify KLS token on Pool.pm KLS holders will be responsible for managing the Kulfi on-chain cash, setting risk and collateral parameters, and voting on any Kulfi smart contract upgrade proposals. Here is a short, non-exhaustive list of things that KLS holders will have to propose and vote on:

Propose and evaluate changes to the protocol
Access Grant for Kulfi Borrowers
Integration of new types of guarantee
Fixing liquidity fees
Activate new maturities to lend and borrow different 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 repayment can be done with KLS token

Borrow from Kulfi Finance:

Kulfi Finance users can benefit from fixed term interest rates on their loans. First, borrowers must post funds as collateral. Next, create negative wTokens. Negative wTokens are representative of borrowed funds in addition to a chosen maturity date on which repayment is due. At this point, borrowers can redeem and exchange their negative wTokens for cryptocurrency.

Lending on Kulfi Finance:

Users can lend reserve capital to the Kulfi Wallet. Thus, lenders will buy positive wToken assets which will return a higher valuation than their initial deposit at a later date. Positive wTokens “mature” over time and become exchangeable for currencies when they reach full maturity.

Kulfi Dapp users do not need to go through standard identification procedures such as Know Your Customer or KYC processes giving users complete anonymity.

Take part in the KLS token presale

Kulfi token Pre-seeding tower is the first and limited opportunity for the public to get exclusive early access to purchase the Kulfi token at 0.005 ADA per KLS token.

Interested participants can follow the link to buy the KLS token at a fair price – https://kulfifinance.io/buy


Kulfi Finance solves one of the fundamental problems in the DeFi space. The ability to provide fixed rate loans makes the DeFi space accessible to more mainstream users and will attract a flood of new users. At Kulfi finance, a user can borrow against your crypto without worrying about changing interest rates. Tomorrow you may be able to take out a fixed rate mortgage on Kulfi!

This is why DeFi is so exciting. Every day there is an innovation that expands the reach of this industry.

Kulfi Finance is believed to have a good chance of becoming one of the leading lending protocols.