How Mutuum Finance (MUTM) IS Taking Over Crypto and Coming For Solana (SOL)

Investors are not waiting for the next Solana (SOL) breakout. Serious investors looking to grow their investment understand that a new token in the DeFi space is the future of 10x gains or more. So far, the Mutuum Finance (MUTM) token has been a roaring success in all aspects. Let us take a look at how this project could make bigger gains for investors than Solana (SOL). Innovative Platform Design The Mutuum Finance (MUTM) project takes the DeFi industry to new heights with its revolutionary innovations. One of them is the incentives system for liquidity support. When a depositor supplies assets into the ecosystem, they go into common pools that earn variable interest rates determined by the pool’s utilization rate. When a depositor adds liquidity to the protocol, they receive mtTokens, which represent their share in the pool, plus accrued interest. The deposits are tracked via smart contracts, which uphold the non-custodial nature of the protocol. Various liquidation safeguards are in place, including a Certik audit that helps to protect the protocol’s resilience. These liquidation safeguards are meant to ensure that the top-tier pools do not run out of liquidity. Various tools are employed, including automated adjustments. Every action is governed by open-source code to ensure the highest degree of transparency. Some of the features in place to protect the platform include: Over-collateralization Borrowers who want to access assets from lenders must over-collateralize their position. They acknowledge that the value of their collateral can fluctuate, thus requiring sufficient headroom. If the value of collateral dips below a certain level, then the collateral becomes eligible for liquidation. Liquidators are then given a discount to purchase the debt. The process ensures there is a healthy buffer between assets and liabilities. Asset Caps Asset caps ensure that there is a limit on how much a given asset can be added to Mutuum Finance. It ensures the protocol does not have excess exposure to one type of asset, which may have heightened volatility or low liquidity. Additionally, it limits the impact that unlimited asset minting can have on the ecosystem. Setting the right deposit limit involves checking numerous metrics like trading volume, price stability, and historical performance. Besides deposits, Mutuum Finance (MUTM) also sets limits on the borrowing of certain assets. The caps ensure that tokens are not exposed to price manipulation or liquidity shortages. By setting limits on volumes borrowed, Mutuum Finance reduces the chances of insolvency triggered by sharp price changes. Restricted Collateralization Certain assets with low liquidity might be placed in the restricted collateralization mode. In this mode, a single collateral asset can only be used to borrow the same asset or with higher limitations. For instance, if the token’s price oracle is prone to manipulation, restrictions like this ensure there is no wide-scale impact on the ecosystem.. Enhanced Collateral Efficiency For assets that have correlated price movement, like stablecoins, Mutuum Finance will offer the Enhanced Collateral Efficiency (ECE). It ensures that they have elevated borrowing limits when both collateral and the loan are in the same group. It ensures that participants benefit from better capital efficiency while protecting the overall ecosystem. The feature is only available to tokens that demonstrate near identical market behavior or consistent pegs. Loan-to-Value (LTV) Ratio The LTV ratio is used to determine the quality of a token on the platform. For instance, an LTV of 75% for MATIC means that a user who adds 1 MATIC to a pool as collateral can borrow up to 0.75 MATIC worth of another token. The exact LTV is based on market metrics and will fluctuate over time as asset prices change. Liquidation Penalty Once a debt becomes undercollateralized, the platform deems it unsafe. Liquidators can then purchase the debt to stabilize the protocol. When a position is liquidated, there is a penalty, equivalent to the liquidation bonus given to the liquidator. A portion of the penalty goes to the treasury. This measure is used to ensure the long-term solvency of the protocol. Reserve Factor A reserve factor is used to determine the fraction of the borrower’s interest that is collected from the borrower. Tokens that are more stable will carry a small reserve factor, while more volatile ones are given a higher one to account for the higher uncertainty. Mutuum Finance (MUTM) Presale Success The innovative design of the platform has led to an increase in presale participation recently. So far, the presale has raised over $9.9 million from over 11,500 participants. Tokens are selling for $0.03 in Phase 5, and over 20% of the tokens have been sold since the current phase began about a week ago. At this rate, this could be the fastest phase in the presale. The reason why tokens are selling off much faster than in phase 1, when prices were at $0.01, is the recent release of the Certik audit. That has boosted trust in the project, accelerating demand. For anyone looking to be part of this innovative platform, getting into the current phase guarantees a 100% ROI based on the listing price of $0.06. For more information about Mutuum Finance (MUTM), visit the links below: Website: https://www.mutuum.com/ Linktree: https://linktr.ee/mutuumfinance Disclaimer: This is a sponsored press release for informational purposes only. It does not reflect the views of Times Tabloid, nor is it intended to be used as legal, tax, investment, or financial advice. Times Tabloid is not responsible for any financial losses. 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Source: TimesTabloid