The new protocol goes live on Cardano.
With the Vasil mainnet launch scheduled on September 22, 2022, Cardano’s new fixed-rate lending and borrowing protocol has gone live.
Kulfi Finance, a lending and borrowing protocol, was deployed on Cardano in a bid to provide financial services across the world.
Kulfi Finance Features
According to an announcement today, 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.
“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 said in a statement.
Currently, Kulfi offers five primary services: borrowing, lending, staking, liquidity providers, principal tokens, and non-fungible tokens (NFTs).
Why Cardano?
Kulfi Finance explained that it chose to launch on Cardano due to the numerous attributes associated with the blockchain, which include speed, scalability, and low-cost transaction costs.
“Although blockchains like Ethereum are more widely used than Cardano, the Kulfi team believes that the Cardano Blockchain has the potential to attract developers and new investors, which will accelerate its adoption shortly,” Kulfi added.
Vasil Upcoming Launch to Lure dApp Developers
Meanwhile, Kulfi’s launch comes a few weeks before the official deployment of the Vasil hard fork on the Cardano mainnet.
Vasil is tipped to go live on September 22, 2022, and the upgrade is expected to prompt many decentralized application developers to choose the Cardano blockchain over others.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
