Why Mutuum Finance (MUTM) Is The Investor-Favorite Utility Token For Potent Gains

New crypto projects are always launching. However, they are not built the same. Some projects offer better returns than others in the long term. One such project is Mutuum Finance (MUTM), which is built with utility in mind.

How Mutuum Finance (MUTM) Became An Investor-Favorite

Mutuum Finance (MUTM) has emerged as a frontrunner in the crypto space due to its focus on utility. The project is built around a decentralized, non-custodial protocol that allows lenders to deposit assets into dedicated liquidity pools and earn interest.

The interest that lenders earn is determined by a pool’s utilization rate, and the system is designed to achieve optimal market efficiency. Borrowers can access liquidity protocols and the high-value assets they hold by depositing overcollateralized collateral.

The protocol has numerous safeguards built into it that control which assets can be accessed. It utilizes various factors to rate an asset before it is added. These factors include the centralization of the project, the volatility, and the liquidity.

The primary metric used to set the limit on how much a given asset can borrow is the loan-to-value ratio (LTV). A token’s LTV ratio is constantly monitored to ensure that it meets the required collateralization limit. If the loan falls below a set level, the position is liquidated.

Borrowers on Mutuum Finance have the option to increase their collateral backing a position to avoid liquidation. Additionally, they are allowed to use multiple assets to back a single position. Doing so can give them better flexibility in managing their position. When borrowers use multiple assets, they are given a weighted LTV.

mtTokens –  Instant Liquidity

When lenders deposit their assets in a liquidity pool, they receive mtTokens in exchange. These tokens are based on the ERC20 token standard and grant holders access to the full value of their assets, plus any interest accrued. For instance, when a lender deposits $4,500 worth of MATIC, they receive mtMATIC tokens in a 1:1 ratio.

These mtTokens can be traded on secondary exchanges or used as collateral for new loans on the platform. Mutuum Finance automatically updates the value of the tokens to reflect the interest accrued plus the initial deposit.

To reduce pressure on the internal pools on the protocol, Mutuum Finance plans to create external liquidity pools on decentralized exchanges where mtTokens can be traded. For instance, they can create an mtDAI or MtETH pair on Uniswap. Here, holders of mtTokens can exchange for their respective assets, or trade them for other assets, and benefit from market opportunities as they arise.

Price Discovery On Mutuum Finance

To ensure the protocol operates at optimal market efficiency, Mutuum Finance (MUTM) plans to launch fair price oracles to determine pricing. It will rely on Chainlink price oracles, which are widely used in decentralized finance. Additionally, it will launch backup price oracles to ensure the highest uptime for all platform users. The team will also rely on on-chain metrics when there is sufficient liquidity on decentralized exchanges.

Address Screening And Bug Bounty Program

On Mutuum Finance, nothing is left to chance. For instance, all new addresses on the protocol will first go through an address screening service before they are allowed to transact. This process will be crucial to ensure that bad actors do not find their way onto the platform. It will also help to protect the reputation of the platform in the long term.

The screening process is completely anonymous, and the protocol does not send any personal data such as IP address or metadata tied to a given user. Not only does this protect the reputation of the platform, but it also ensures that the platform complies with all relevant laws.

As part of the process of securing the protocol, Mutuum Finance will also launch a bug bounty program. In this program, security experts, researchers, and developers will be rewarded for identifying and reporting any code vulnerabilities.

Certik Audit Success

Mutuum Finance (MUTM) recently joined the ranks of Certik audited projects in the DeFi space. Having secured the audience, it has been a boost for investor confidence in the platform. As a result, the ongoing presale has been flooded with a wave of new buyers.

Mutuum Finance (MUTM) Presale

The Mutuum Finance (MUTM) presale has experienced a surge in interest lately following the Certik audit results. It currently has over 11,700 participants, who have bought over $10 million worth of the presale tokens.

The presale is currently in phase 5, where each token is selling for $0.03.  So far, over 22% of the phase 5 presale tokens have been sold, barely a week after their launch. In the upcoming phase of the presale, the token price will go up by 16.67% to $0.035.

The stepped increase in price is designed to ensure that the earliest investors get the most benefits. You too can be part of this fantastic project at the current price of $0.03 per token.

For more information about Mutuum Finance (MUTM), visit the links below:

Website: https://www.mutuum.com/ 

Linktree: https://linktr.ee/mutuumfinance