A new contender is shaking up the balance of power in the DeFi world. According to analysts, Mutuum Finance (MUTM) could deliver a bigger ROI than Shiba Inu (SHIB). Let us take a closer look at what is driving this massive optimism.
Mutuum Finance (MUTM) is currently in phase 5 of its presale, which has left analysts stunned by its success. So far, over $9.4 million has been raised in the presale. Phase 5 tokens are going for $0.03, representing a 100% ROI based on the $0.06 listing price.
Those who participated in the presale at phase 1 got their tokens for $0.01, with the price rising 200% since then. In the upcoming phase, the price will increase by 16.67% to $0.035, while the possible ROI based on the listing price will dip to 71.43%.
So far, over 11,300 unique buyers have joined the presale. Anyone can join the current presale without preconditions, such as minimum or maximum limits. However, with over 9% of the tokens in the current phase already sold, barely a week after its launch, the opportunity for a 100% ROI will not last long.
Utility Over Hype
Over the past few years, crypto investors looking for new growth opportunities have had to purchase meme coins. While these coins have delivered some good short-term gains, they often have low liquidity and high volatility, making sustainable returns on investment nearly impossible.
Mutuum Finance (MUTM) aims to change all that by turning the crypto world on its head by focusing on pure utility. The project is powered by a unique protocol that supports two primary modes; one for more stable assets, and another one for more volatile tokens.
In the first mode, peer-to-contract (P2C), lenders and borrowers interact via collective liquidity pools governed by audited smart contracts. The lenders supply liquidity to a pool, and they receive an annualized percentage yield. The rate is set dynamically based on the pool’s utilization rate.
Depositors in P2C mode receive mtTokens that provide them with instant liquidity. These tokens represent the share of deposited assets and the interest they accrue. The mtTokens can be used as collateral for new loans on the protocol or traded on secondary marketplaces.
Borrowers can choose between variable and stable rates. The variable rate allows borrowers to respond to market changes, while stable rates ensure better repayment predictability. When using a stable rate, the rate is calculated based on the time of borrowing, as a weighted average of the current variable rate and various other market signals.
The variable rate starts high, since borrowers have the benefit of predictability, to compensate for the possible future rate hikes. In certain conditions, a stable rate may be rebalanced, incase of rapid market changes. In the protocol, a rebalancing is triggered if the current supply rate goes to at or below 90% of the variable rate that would apply. In short, if the variable rate rises by a significant amount compared to the stable rate, the stable rate is raised.
The second mode, called P2P (Peer-to-Peer), is reserved for higher volatility tokens, including meme coins like FLOKI. Mutuum Finance (MUTM) has created separate smart contracts for this mode to shield the collective pools from unpredictable volatility. Borrowers and lenders in this mode agree on the terms directly, including the loan duration, partial fills, and interest rates. Since there is no share pool, lenders could set higher rates to increase their returns.
To maintain the overall health of the DeFi ecosystem, all loans are overcollateralized. This feature is called the stability factor and ensures that the borrower’s collateral is enough to sustain the loan taken by the borrower. If collateral drops below a set level, a liquidation occurs. Liquidators step in and repurchase the debt at a discount, stabilizing the entire protocol.
Growth You Can Rely On
Mutuum Finance (MUTM) offers everyone in the crypto world reliable and predictable growth. Unlike high-volatility meme coins that flash unpredictable gains, the Mutuum Finance protocol will provide its community with stable, long-term growth while they earn passive income through dividends. The protocol will use profits to purchase MUTM tokens on the open market and redistribute them to stakers who help maintain the ecosystem’s security. This presents a massive opportunity that comes with no downside and tremendous upside.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://mutuum.com/
Linktree: https://linktr.ee/mutuumfinance
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