Cardano’s new fixed-rate loan and borrowing protocol has gone live, with the Vasil mainnet launch slated for September 22, 2022.
Kulfi Finance, a lending and borrowing protocol, was deployed on Cardano to provide global financial services.
According to a press release today, Kulfi provides low-cost and efficient liquidity by allowing owners of specific cryptocurrencies to borrow other comparable assets without selling the coins.
The deposited monies will provide the required liquidity to the Kulfi platform, while users will be paid interest on their holdings. Kulfi Finance is a non-custodial money market protocol on the Cardano blockchain that offers a variety of interest rate products, including fixed and variable interest rate financing.
“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.
Kulfi now provides five key services: loan, borrowing, staking, liquidity providers, principle tokens, and non-fungible tokens (NFTs).
Kulfi Finance noted that the company chose to start on Cardano because of the blockchain’s multiple benefits, including speed, scalability, and cheap 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’s Upcoming Launch Intended to Entice dApp Developers
Meanwhile, Kulfi’s launch comes just a few weeks before the Cardano mainnet’s official deployment of the Vasil hard fork.
Vasil is slated to go operational on September 22, 2022, prompting many decentralized application developers to select the Cardano blockchain over others.