Liquidity Providers

Liquidity Providers

Liquidity providers capitalize Kulfi liquidity pool. They contribute to the liquidity pools and act as banks to borrowers. In exchange for their contribution, liquidity providers earns from interests paid back by borrowers & fees every time a borrower makes a transaction.

Depositing Liquidity

To deposit into Kulfi liquidity pool, a liquidity provider first specifies the token and amount they want to supply as liquidity.

The liquidity provider deposits to the liquidity pool to receives interest bearing token (ptokens) in return.

Now the liquidity provider has liquidity tokens. Liquidity tokens represent their proportional claim on the liquidity pool. A liquidity provider can redeem liquidity tokens for these underlying assets at any time.

NB: Borrow against your ptokens while earning your LP rewards