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Kulfi Finance : A fixed rate lending and borrowing DeFi market on Cardano

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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 –

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 can be understood as owning a certificate of liability for lending or debt repayment.

* A positive wtokens balance is an asset, which is redeemable for one currency at maturity.

* A negative wtokens balance is a debt obligation, obliging a negative wtokens holder to provide a currency at maturity.

Kulfi Token (KLS) Utilities 

KLS is Kulfi’s native token that plays the role as governance token and Proposing upgrade to the project.

Transaction fees within the Kulfi Ecosystem can be paid using KLS tokens. 

KLS token holders are entitled to 50% of profits made from all the transactions carried on Kulfi platform using the KLS token.

Loan repayment can be done with KLS tokens 

Setting of liquidity fees and onboarding new collateral types

Deciding new asset pool and maturity time

Access Grant for Kulfi Borrowers: Every borrower is required to a minimum number of KLS token inorder to access loans from Kulfi KPool. (Number of KLS token to be held would be decided by the DAO).

Transaction Fees: Transaction fees with the Kulfi Ecosystem can be paid using KLS tokens. 

KLS Staking: KLS token holders can choose to stake their tokens and earn up to a high percentage APY and may wish to further boost rewards using Kulfi NFT.

Future role in the Kulfi ecosystem: KLS token will play an essential role in the expanded Kulfi ecosystem. Specific utilities will be announced as we roll out new products and features.

Liquidity Pool

The liquidity pool in Kulfi is built according to the AMM mechanism like in DEXs, which allows lenders and borrowers to lend and borrow without having to wait for a counterparty. A liquidity pool will include wTokens and the corresponding token, and the pool will have a maturity schedule to ensure the safety of the loans. Kulfi’s operating mechanism can be considered an AMM DEX with wTokens as a trading unit, whereas users will trade wToken to own the right to lend or exchange wToken for loans.

What makes Kulfi special?

Kulfi stands out because this project gives users a fixed interest rate when lending and borrowing, which gives users more control when making decisions.  Defi activities such as DEX, farming, lending & borrowing are growing at a fast pace, however, the prominent issue in the Defi space is the instability of liquidity pools due to fluctuations when the market changes. Especially with lending & borrowing, because these are leverage creation activities that require collateral, so security will be the biggest priority for users.

Kulfi Dapp Users do not need to pass the standard identification procedures such as Know Your Customer or KYC processes with decentralized crypto exchanges.

$KLS Token Pre Seed Details

1 ADA = 200 KLS Tokens 

Pre Seed Sale Allocation: 70,000,000 KLS Tokens

Minimum buy: 350 ADA

Interested Investors / Participants can follow the link to purchase KLS at Pre Seed Round –


Kulfi finance is a Lending protocol on Cardano, Kulfi Finance will helps users to lend and borrow with fixed interest rates. This will significantly give users better assurance when investing in DeFi space.

Learn more on Kulfi Finance 

Join KLS Pre Seed:








Disclaimer: This is a paid post and should not be treated as news/advice.


With Masters in Mass communication and journalism, Anjali's interests lie in blockchain technology adoption across emerging economies.
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