Kulfi Finance’s protocol will facilitates fixed-rate, fixed-term crypto asset lending and borrowing through a novel financial instrument called wTokens. wTokens are essentially described as transferable tokens that at a specific point in the future, represent a claim on a positive or negative cash flow.
The liquidity pools on Kulfi Finance are capitalized by liquidity providers who contribute pToken (Principal tokens) which are effectively interest-bearing assets. These pTokens are used within Kulfi in order to provide liquidity providers with better returns. Liquidity providers, acting as counterparties to the active lenders and borrowers on the protocol, essentially contribute liquidity to liquidity pools and in exchange they earn fees each time a lender or borrower makes a trade.
Both lenders and borrowers are given fixed interest rates on Kulfi. These stay fixed over the course of the maturity which is not the case on many platforms – those that at times may offer stable rates but only at a premium – and often alter the rates when market conditions shift.
Kulfi Finance Features
According to an announcement today by the Kulfi product manager Brian Jackson, “Kulfi offers low-cost and efficient liquidity by allowing owners of specific cryptocurrencies to borrow other related assets without selling the coins”. The deposited funds will supply the Kulfi platform with the necessary liquidity, while users will be paid interest on their holdings. Kulfi Finance is a non-custodial money market protocol that offers various interest rate products on the Cardano blockchain, including fixed and variable interest rate lending. While the variable loan products depend on supply and demand, cross-collateral lending, and instant loans to determine interest rates, the fixed loan product is based on the zero coupon bond concept.
Kulfi Token (KLS) and Governance
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. The $KLS token can be used for “access Kulfi liquidity pool for variable borrowers”, “govenance voting” and “staking”.
Interested investors wanting to get on the pre seed and acquire $KLS tokens at the Pre Seed Round before exchange listing can do so by clicking on the link below.
Kulfi Token (KLS) Token Utilities and Tokenomics
Proposing and evaluating upgrades to the protocol
Access Grant for Kulfi Borrowers
Onboarding new collateral types and 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 earns a percentage of fee paid within the Kulfi Ecosystem
Loan repayment can be done with KLS token
Everything is clear with the governance attributes of KLS token on the protocol’s white paper. The supply of KLS is limited to 1 billion tokens making it deflationary. KLS can be used to buy NFTs and cryptocurrencies at a discount to regular trading pairs. $KLS can also be used as collateral currency for Kulfi Lending protocol.
70 million KLS tokens was made available for the Kulfi Pre Seed Round.
Participate in KLS Token Pre Seed Sale
Kulfi Token is currently on Pre Seed Sale for early buyers, This is the first and limited opportunity for the public to gain exclusive early access to purchase Kulfi token at 1 ADA = 200 KLS tokens.
Interested participants can follow the link to purchase KLS token at a fair price – https://kulfifinance.io/buy
“The initiative permits fixed-rate lending by lenders and fixed-rate, fixed-term borrowing by borrowers. Kulfi Finance aims to serve as the ecosystem’s liquidity gateway for Cardano DeFi via the use of streamlined user interfaces and reduced collateral requirements,” Kulfi Finance stated in a statement. 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.
Kulfi enables fixed rate lending with a financial primitive called wToken. wToken are transferable tokens that are defined by a currency type and a maturity date. Upon maturity, wToken token is redeemable for its underlying currency type on Kulfi portfolio. wToken allows lenders and borrowers to define and trade cash flows at specific dates in the future. Read moire on wToken characteristics.
Currently, Kulfi offers five primary services: borrowing, lending, staking, liquidity providers, principal tokens, and non-fungible tokens (NFTs).
Learn more on Kulfi Finance
Join KLS Pre Seed: https://kulfifinance.io/buy