Introducing Kulfi Finance: A Fixed Rate Lending and Borrowing protocol on Cardano

In the past years blockchain industry saw the explosive growth in innovative blockchain financial applications covering a broad range of use cases, including blockchain network, DeFi and GameFi. The robust influx of brains and capital came with a crypto boom, but blockchain protocols are still way far from being mature products. 

Taking lending protocol as example, though a handful of outstanding products like Aave, Compound and Venus have already launched a set of lending services for crypto users on Ethereum and BSC, lending sector has yet to produce a simple, convenient and multi-functional lending product with broad appeal both in and outside the world of crypto natives.

To address this pressing need, Kulfi Labs, the upstart crypto expertise team rolled out, a lending protocol on Cardano blockchain.

What is Kulfi Finance?

A decentralized protocol on the Cardano blockchain, Kulfi Finance makes it possible for anyone to lend or borrow crypto assets at a fixed-rate of interest at any time, from anywhere in the world. Decentralised application (Dapp) developers can also utilize the protocol to develop apps. Unlike many other protocols that tend to only either serve lenders at fixed rates, or offer unstable, variable interest rates, Kulfi aims to serve both sides of the fixed-rate borrowing and lending market. 

Kulfi Finance’s protocol facilitates fixed-rate, fixed-term crypto asset lending and borrowing through a novel financial instrument called wTokens. wTokens are essentially described as transferable tokens that at a specific point in the future, represent a claim on a positive or negative cash flow. 

The liquidity pools on Kulfi Finance are capitalized by liquidity providers who contribute pTokens which are effectively interest-bearing assets. These pTokens are used within Kulfi in order to provide liquidity providers with better returns. Liquidity providers, acting as counterparties to the active lenders and borrowers on the protocol, essentially contribute pTokens and wTokens to liquidity pools and in exchange they earn fees each time a lender or borrower makes a trade between pTokens and wTokens.. 

Kulfi Token (KLS)

KLS is a Cardano token that governs the Kulfi protocol. KLS holders can propose, vote on, and implement changes to Kulfi system parameters and smart contracts. Each KLS holder gets one vote per KLS that they hold. 

Verify KLS token on

KLS holders will be responsible for managing the Kulfi on-chain treasury, setting risk and collateralization parameters, and voting on any proposed upgrades to the Kulfi smart contracts. Here is a short, non-exhaustive list of things KLS holders will need to propose and vote on:

  • Setting liquidity fees
  • Setting collateral haircuts
  • Onboarding new collateral types
  • Activating new maturities for lending and borrowing different assets
  • Proposing and evaluating upgrades to the protocol

How does Kulfi Finance works?

The most important building block of the Kulfi system are wtokens tokens. They are transferable tokens that represent a claim on a positive or negative cash flow at a specific point in the future. Essentially an internal accounting unit to keep track of who is owed what at any given time.

  1. Positive wtokens balances: are assets that can be redeemed for currency at maturity.

  2. Negative wtokens balances: are obligations or debt, where the owner has to provide currency at maturity.

Every user in the system interacts with Kulfi’s liquidity pools. Furthermore, each maturity date has its own liquidity pool to ensure that lenders and borrowers have somewhere to buy and sell wtokens at a good price.

What makes Kulfi different?

With the cutting edge experience of Kulfi team, the highly-scalable markets on Kulfi finance will not only provide high-yielding deposit and lending services, but also improve the overall capital-efficiency of cardano Chain ecosystem and provide solid backup for cardano-based assets. At launch, Kulfi will enable borrowing and lending money markets across a set number of cardano native assets (CNFT & CNT) and offer the following high-liquidity money markets with dynamicly-adjusted incentives.

Kulfi Finance Media 


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