Kulfi Finance launches fixed-rate money market on Cardano,…

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koulfi is a decentralized money market protocol on Cardano, aiming to provide a full range of lending products, including but not limited to: floating rate loans, fixed rate loans and borrowings. The Kulfi Finance team brings the engineering experience of technology companies such as GoogleFacebook and Microsoft, and previously contributed to Cardano.

The Kulfi crypto ecosystem uses a new protocol to provide borderless, permissionless fixed-term loans and fixed-term interest rates. Kulfi works using the unique wToken mechanism in conjunction with the native Kulfi Funding Token (KLS).

Importance of the fixed rate for DEFI

If you wish to lend your tokens on the DEFI, you will only be able to make variable rate loans on most protocols. The interest rate is usually determined by supply and demand for the token. When demand increases, interest rates increase. When the supply of tokens increases, the interest rate decreases. This mechanism is unfortunate for borrowers because they need certainty about borrowing costs. This dilemma produces the need for fixed rate/term loans, where borrowers and lenders agree on a fixed rate of interest. Unfortunately, most loan protocols do not have this feature and cannot serve as a stable source of credit. Kulfi finance solves this problem by offering fixed rate loans to its users. “Kulfi’s mission is to bring fixed rate borrowing and lending to Cardano and bring DeFi to a broader audience that cares about 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 compactable with many popular Cardano DeFi protocols, wallets, and exchanges.

The primary use case for the Kulfi Finance (KLS) token is as a platform governance mechanism. Following the initial launch, the Kulfi Finance team will “provide analysis and parameter recommendations”. However, as the project grows and is adopted, the team will take a step back. In turn, this will allow KLS token holders to suggest, vote on, and implement changes within the Kulfi crypto ecosystem. Each KLS token is representative of one vote. Therefore, the more KLS tokens one holds, the more influence they can have in a vote.

There is quite a long list of governance responsibilities of Kulfi Finance (KLS) token holders. Nonetheless, KLS token holders will have full governance capabilities to set liquidity fees and collateral and risk parameters. Additionally, holders of the KLS token are tasked with “activating new maturities to lend and borrow different assets” alongside “managing cash on-chain Kulfi.”

KLS tokens are available at Pre-seeding tower at a fixed price of 1 ADA for 500 KLS, the interested participant can follow the link to buy a KLS token at a fair price – https://kulfifinance.io/buy

Kulfi Finance Fixed Rate Protocol

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.

Loan on Kufli Finance

Users can lend reserve capital to Kulfi’s wallet. Thus, lenders will buy positive wToken assets which will give 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.

wTokens

As a core feature of 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 owe what and when. wTokens is a mechanism representing a deposit of funds plus a fixed rate interest amount and a mutually agreed repayment date.

Kulfi Protocol Building Blocks

As a core feature of 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 owe what and when. wTokens is a mechanism representing a deposit of funds plus a fixed rate interest amount and a mutually agreed repayment date.

Kulfi seed pre-sale

The KLS token is the utility token that is at the heart of the Kulfi ecosystem. Investors who wish to acquire KLS tokens at pre-seed tower can follow the link to make a 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 and lending at fixed rates and on fixed terms. The Kulfi protocol allows the neighborhood to co-create and co-produce applications that allow lenders, borrowers, and merchants to interact with Cardano’s most versatile decentralized finance protocol.

Learn more about Kulfi Finance

Join the 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 for informational purposes only. It does not reflect the opinions of Crypto Daily and is not 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, editors, publishers, websites and community members to share news about the Cardano ecosystem. User should always do their own research and none of these articles is financial advice. The content is for informational purposes only and does not necessarily reflect our opinion.

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