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 the fixed rate money market.”
Kulfi finance facilitates lending and 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 crypto users with the ability to access stable financing. Kulfi protocol is a first of its kind to be 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 in 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 on 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…
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