About Kulfi Finance

Kulfi Finance Fixed Rate lending & Borrowing protocol

Kulfi Finance is a next gen decentralized lending & borrowing platform built on the Cardano blockchain that seeks to provide financial services to users worldwide. “The point of DEFI is to serve real people with real finance, and thus be able to innovate and do interesting things.” - Charles Hoskinson. Kulfi allows digital asset owners to borrow desired assets instantly against their crypto holdings without selling them, providing efficient and cheap liquidity.

The crypto deposits provide liquidity to the platform, the users in turn earn interest on their holdings. This opens up the opportunity for fund managers, miners, and holders to make their digital assets work for them. Users interact with the Kulfi mobile applications and web applications with ease and high security, protected by advanced encryption, and a secure customised captcha system.

Kulfi Finance Lending & Borrowing Protocol

Kulfi FInance is a non-custodial money market protocol on Cardano. Its goals are to bring a whole suite of interest rate product including: variable rate lending, fixed rate lending to the Cardano blockchain. The current variable rate product features variable interest rates based on supply & demand, cross collateral lending, and flash loans.

The fixed-rate lending product uses the model of zero coupon bond. We allow lender to lend at a fixed rate and allow borrower to take on fixed-rate, fixed-term loan. Kulfi Finance seeks to be the liquidity gateway for the Cardano DeFi ecosystem through simpler user interfaces, lower collateral requirements.

Kulfi Finance F.A.Q

What is Kulfi?

Kulfi Finance is lending, Borrowing & Yield Farming protocol on Cardano that facilitates fixed-term cardano asset lending and borrowing.

Why does Kulfi matter?

Fixed-rate financing is how financial markets operate. Fixed interest rates provide certainty and minimize risk for market participants, and this is why the majority of U.S. debt is issued using fixed rates. Kulfi brings fixed interest rates to the decentralized financial system on Cardano and gives crypto users the same access to stable financing.

Why is KLS important?

KLS is the native token of Kulfi finance. Holding a portion of this token guarantee the token holders access to borrow from Kulfi liquidity pool. This flexibility opens a new dimension in the financial design space on Cardano.

Why is wtoken important?

wtokens offers a simple and reliable mechanism for Kulfi users to commit to transfers of value at specific points in the future. Trading wtokens allows users to efficiently move value back and forth through time. This flexibility opens a new dimension in the financial design space on Cardano.

Who created kulfi?

Kulfi was developed and launched in early 2022 by a team of Crypto stakeholders with expertise in technology, trading, security, and design.

How is kulfi governed?

Kulfi Finance is governed by KLS token holders. The Kulfi Team will provide analysis and parameter recommendations for a short period of time following the launch of the protocol. As the protocol becomes increasingly decentralized, the Kulfi Team will step back from protocol governance.

Is lending the same thing as providing liquidity?

No. Lenders trade cash for wtoken and earn a fixed interest rate. Liquidity providers capitalize Kulfi liquidity pools and earn variable trading fees. Each time a lender lends or a borrower borrows, they pay a transaction fee to liquidity providers in that pool. Kulfi liquidity pools are similar to Uniswap pools in that there are buyers, sellers, and liquidity providers that facilitate trading. In the case of Kulfi, buyers and sellers are lenders and borrowers. Liquidity providers facilitate that lending and borrowing and earn transaction fees as compensation.

Is there a repayment penalty for exiting my loan early?

You can exit your loan at any time without penalty. When you repay your debt, you pay back your principal and any interest that you have accrued to that point. Additionally, you close out the remainder of your loan at the prevailing interest rate. Changes in the prevailing interest rate can affect how much money you make if you choose to exit your position early. You can think about closing out a borrow as executing an offsetting lend.

How does Kulfi Work?

Exploring the documentation found here will give you the full technical background of how kulfi works.