Best cryptos for passive income in 2025 — ADA faces unexpected challenger

Cardano (ADA) has earned its reputation as a passive income staple thanks to its staking model, which allows users to earn steady rewards while contributing to network security. It remains a respectable option for those looking to accumulate returns without trading actively. However, in today’s expanding DeFi market, passive income is no longer limited to token locking and validator rewards. Investors are now seeking platforms that deliver utility-backed returns through actual user activity. This shift in expectations has made room for new challengers. One of the most talked-about among them is Mutuum Finance (MUTM) , a decentralized liquidity protocol that offers users a more interactive way to earn. Built on principles of accessibility and performance, Mutuum Finance (MUTM) introduces flexible, utility-driven mechanics that reward participants based on real protocol usage, not just token ownership. Mutuum Finance (MUTM) brings earning flexibility through lending and Layer-2 infrastructure Mutuum Finance (MUTM) is structured around two distinct lending models: Peer-to-Contract (P2C) and Peer-to-Peer (P2P). Both models will allow users to earn passive income while offering different levels of control and flexibility. In the P2C model, users will be able to deposit assets such as USDT, USDC, ETH, BTC, BNB, AVAX, or SOL into non-custodial smart contract pools. These deposits will become available for overcollateralized borrowing. As borrowers draw from the pool, the utilization rate will increase, which will automatically raise interest rates. This dynamic adjustment is designed to balance supply and borrowing activity. Depositors will earn interest that reflects real-time borrowing conditions. For each deposit, users will receive mtTokens—tokenized representations of their assets. These mtTokens will accrue interest over time and can also be transferred, traded, or used as collateral within the Mutuum Finance (MUTM) protocol. The P2P model on Mutuum Finance (MUTM) will allow users to lend directly to others under custom terms, including duration, interest rate, and supported assets. This model is expected to support a broader range of tokens—including PEPE, DOGE, and SHIB—that are not commonly accepted by centralized lenders, offering more exposure to niche digital assets. Mutuum Finance (MUTM) is developing a fully decentralized, overcollateralized stablecoin. This stablecoin will be minted directly from on-chain collateral, with issuance and redemption governed by smart contracts. It will not rely on fiat reserves or centralized entities. The protocol will maintain its $1 peg using algorithmic supply mechanisms, including interest rate governance and mint/burn processes. Borrowing will remain overcollateralized to maintain system integrity. Only approved issuers with allocation caps will be able to mint the stablecoin. Interest generated through borrowing will be redirected into the ecosystem, contributing to the protocol’s sustainability. Transaction efficiency is a critical part of Mutuum’s architecture. To reduce network congestion and minimize gas fees, the protocol is being developed with Layer-2 integration. This ensures lower costs and faster execution, making the platform more accessible to all users. It also positions Mutuum Finance (MUTM) as a practical solution for retail participants who have been priced out of earlier DeFi protocols by high transaction fees. MUTM token offers real earning power with redistributed protocol revenue The MUTM token will play a key role in the Mutuum Finance (MUTM) ecosystem, functioning as both a utility token and a reflection of platform activity. Users who stake their mtTokens will be eligible to receive passive income distributions funded by protocol-generated revenue. A portion of the protocol’s revenue will be used to buy MUTM tokens from the open market. These purchased tokens will then be distributed to mtToken stakers in the designated contracts. This model is designed to promote long-term engagement while aligning token demand with actual usage of the platform. The presale is currently in Phase 5, with each token priced at $0.03. So far, over $10.8 million has been raised, and the community now includes more than 12,200 holders. The total supply of MUTM is fixed at 4 billion tokens. According to the project roadmap, the team plans to launch a beta version of the platform by the time the token becomes publicly tradable. This will give early participants access to platform functionality soon after listing. Security is another key focus area. The Mutuum Finance (MUTM) smart contract has been reviewed by CertiK using both manual and static analysis methods. The protocol received a Token Scan Score of 80.00, providing added confidence to investors monitoring the project’s technical reliability. The audit was originally requested in February and revised in May 2025. There’s also a $100,000 giveaway underway, further engaging the growing user base and rewarding early supporters. Conclusion: a new era of passive income starts with protocol activity, not just holding Mutuum Finance (MUTM) is building a structured system where users will be able to lend, stake, and mint assets while earning rewards that reflect real protocol activity. The platform uses mtTokens to represent deposits, allowing users to earn interest and gain flexibility over their liquidity. A portion of protocol revenue will be used to buy back MUTM tokens and distribute them to mtToken stakers, rewarding long-term participation. While Cardano (ADA) offers staking rewards through its consensus model, Mutuum Finance (MUTM) is taking a broader approach focused on decentralized lending, passive income, and transparent on-chain utility. The protocol will rely on non-custodial smart contracts, and a CertiK audit has already been completed. With over $10.8 million raised in its presale and a growing community of over 12,200 holders, it is preparing for major milestones including its beta launch and the introduction of a fully overcollateralized stablecoin. For DeFi participants seeking protocol-based rewards beyond traditional staking, Mutuum Finance (MUTM) offers a model that is directly tied to user engagement, smart contract operations, and real platform usage. For more information about Mutuum Finance (MUTM) visit the links below: Website: https://mutuum.com/ Linktree: https://linktr.ee/mutuumfinance The post Best cryptos for passive income in 2025 — ADA faces unexpected challenger appeared first on Invezz

Source: Invezz