Today, DeFi can only serve a small segment of the Lending & Borrowing market in Crypto because interest rates are currently too volatile, providing no certainty to both borrowers and lenders. Kulfi finance is one of the first Lending projects to offer users a fixed interest rate for both lenders and borrowers, and this is a new step for the development of DeFi. As the scale of cash flow is getting bigger and bigger, stability will become more and more critical. Kulfi Finance facilitates fixed-rate lending and borrowing of crypto-assets on Cardano via on-chain liquidity pools.
Importance of Fixed rate to DEFI
Fixed-rate lending plays a critical role in traditional financial lending markets because it enables users to minimize risk and plan effectively for the longer term. Some of the largest lenders in traditional finance, like pension funds or retirees, have long-dated liabilities, and fixed-rate lending helps them be sure that they can meet their future obligations. Borrowers also prefer fixed interest rates because they remove a significant source of risk from long-term investments and operations. Whether a business is investing in a new factory or a family in a new home, fixed interest rates provide the certainty needed to make large upfront investments with borrowed capital.
Kulfi developer felt that the nascent decentralized finance ecosystem needed the ability to facilitate longer-term lending markets in order to achieve its goal of creating an alternative global financial system that could match the utility of the traditional system.
Kulfi Token (KLS)
$KLS is the ticker of the Kulfi fixed rate money market and built on the Cardano network. It’s a utility token that also serves as the protocol in-game currency.
The $KLS token Pre Seed Round is currently ongoing and it’s showing promising signs as many industry experts are excited about its innovative tokenomics and utility. Users can join in the $KLS Token Pre seed at the fixed price of 1 ADA = 200 $KLS.
Investors looking to acquire some KLS tokens can follow the link to purchase Kulfi Tokens – https://kulfifinance.io/buy
How does Kulfi Protocol work?
Borrower: Users can mortgage their collateral in exchange for a negative wToken. The borrower can exchange negative wToken to receive stablecoins and obliged to pay back at maturity (Capital + Interest rate)
Lender: Users can exchange their crypto assets for a positive wToken. When wTokens matures, the lender can redeem positive wToken for its face value (Capital + Interest yield)
Liquidity Provider: Liquidity providers have the same responsibilities as DEX providers, maintaining pools and getting benefits from transaction fee and reward from the project.
Kulfi Lenders and Borrowers Building Block Token (wTokens)
wTokens is a transferable token that represents a user’s ability to lend or borrow and the payment deadline. wtokens can be minted as postive wToken or negative wToken. Owning wtokens in the portfolio…
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