Mutuum Finance (MUTM) is one of the most promising projects in the world of DeFi, offering a range of technological innovations and stringent security measures.
Technological Innovations of Mutuum Finance (MUTM)
Mutuum Finance aims to change the DeFi industry through technical innovations. The project offers a unique lending protocol where lenders can deposit funds into a pool managed by an audited smart contract. Funds begin to accumulate interest based on the utilization rate of the asset pool, creating a self-sustaining cycle of capital efficiency.
Protocol Safeguards on Mutuum Finance
Mutuum Finance is based on the principle of balancing mass adoption and protecting financial stability. Key safeguards include:
- **Overcollateralization:** Borrowers must provide collateral exceeding the loan amount to protect the system from volatility. - **Deposit and Borrow Caps:** Upper limits are set on how much can be borrowed or deposited to minimize risks. - **Restricted Collateralization:** Certain tokens are limited to use solely for borrowing purposes. - **Enhanced Collateral Efficiency:** Allows users to borrow more when using tokens with correlated prices. - **Loan-to-Value (LTV) Ratio:** Limits borrowing based on the collateral value to maintain financial stability. - **Liquidation Threshold:** Triggering liquidation process when undercollateralized. - **Liquidation Penalty:** Applied upon liquidation, with distributions to liquidators and protocol treasury. - **Reserve Factor:** Collects a portion of interest to protect against potential defaults.
Success of the Mutuum Finance (MUTM) Presale
The presale of Mutuum Finance has attracted over $10.1 million from more than 11,700 investors. In the fifth phase of the sale, over 1% of the allocated tokens have already been sold. In the upcoming sixth phase, the token price will increase by 16.67%, reducing the guaranteed return on investment from 100% to 71.43%.
Mutuum Finance (MUTM) represents an important project in DeFi, offering both technological innovations and stringent security measures that attract investor interest.
