Mutuum Finance (MUTM) presents a rare opportunity to be part of a crypto project before its value explodes.
Based on the recent updates from the team and the protocol design, investors have been pouring into the presale at an amazing rate.
Early investors stand to experience some of the biggest gains in the crypto world in 2025.
The Mutuum Finance (MUTM) protocol design
Mutuum Finance (MUM) is a decentralized non-custodial protocol where users can participate as lenders, borrowers, or liquidators.
When users deposit their assets in an audited smart contract, they start to earn interest on those assets immediately.
The interest rate is determined by the pool utilization rate.
When borrowers take up loans from a pool, the interest rate rises, which encourages more lenders to deposit their assets.
The result is that the system achieves equilibrium for optimal capital efficiency.
Instant liquidity with mtTokens
When lenders deposit their assets in a pool, they receive mtTokens in exchange. For instance, when they deposit MATIC tokens, they receive mtMATIC tokens in return on a 1:1 ratio.
These tokens are based on the ERC20 token standard, which means they can be traded on compatible exchanges.
Additionally, holders can use them as collateral on the protocol to take advantage of crypto market opportunities in real time.
Overcollateralization
On Mutuum Finance (MUTM), each loan position is backed by excess collateral. This is because the value of collateral can fluctuate over time.
As such, sufficient headroom and incentives are used to ensure positions are safe when markets shift.
If collateral falls below a set threshold, a portion of it is liquidated. Liquidators step in, and they are given an incentive bonus to buy the debt at a discount. The mechanism ensures there is a healthy buffer between the assets and liabilities on the protocol.
Tokens that have low liquidity and high volatility may be limited to the Restricted Collateralization Mode. In this mode, only one collateral asset can be used to borrow the same asset, or with strict requirements.
Additionally, if the token’s oracle data can easily be manipulated, additional restrictions can be used to dampen the potential impact on protocol solvency.
One of the metrics used when setting the collateral level is the loan-to-value (LTV) ratio.
For instance, with an LTV of 85%, pledging 1 MATIC as collateral means you can borrow up to 0.85 MATIC worth of another token.
The LTV fluctuates over time for each asset based on market prices.
The reserve factor
To maintain the solvency of the protocol, Mutuum Finance applies a reserve factor, which collects part of the borrower’s interest via the reserve factor.
These funds are used to offset any potential default and extreme market movements. Tokens with high stability feature a lower reserve factor, which can be as low as 10%.
Transparent price discovery
Mutuum Finance plans to rely on Chainlink data feeds as the primary price oracle.
These data feeds are widely used in the crypto world to provide transparent pricing data.
Additionally, they will use fallback oracles in case the primary oracle goes down.
They could combine multiple oracles to provide aggregate feeds. Finally, the protocol will rely on on-chain data when there is sufficient volume.
The on-chain data will be used as an important reference point for token price valuation.
All these features are designed to ensure that Mutuum Finance (MUTM) achieves long-term success for its users.
Through a framework of checks and incentives, it ensures that the solvency of the protocol is always protected.
Update on the ongoing MUTM presale
The Mutuum Finance (MUTM) presale is in phase 5, where each token is going for $0.03. So far, it has been a massive success, raising over $10.1 million from over 11,700 unique buyers.
The speed of the presale has been quite impressive, with over 25% of the tokens set aside for phase 5 already sold out.
One catalyst for the fast speed is the expected ROI of 100%, based on the $0.06 listing price. In the upcoming phase 6, the token price will increase by 16.67% to $0.035.
That will also reduce the ROI to just 71.43%. As such, investors are clamoring to get their tokens before this new increase.
The backbone of the Mutuum Finance (MUTM) project is utility, which will drive up massive adoption once the lending protocol goes live.
At the current price of $0.03, you have the opportunity at one of the biggest bargains in crypto of 2025.
It is especially so given some of the projections by analysts, who expect the price of MUTM tokens to rise 20x after launch.
For more information about Mutuum Finance (MUTM), visit the links below:
Website: https://www.mutuum.com/
Linktree: https://linktr.ee/mutuumfinance
The post Exploring Mutuum Finance: how innovation is driving explosive growth appeared first on Invezz
https://invezz.com/news/2025/06/08/exploring-mutuum-finance-how-innovation-is-driving-explosive-growth/
