2025 has been a great year for blockchain adoption. It has seen conversations around the technology, and cryptocurrencies rise to new levels. As investors become more knowledgeable about the sector, they have pivoted to projects that offer real-world utility. One of the most popular projects amongst informed investors in Mutuum Finance (MUTM) . The project aims to expand the reach of Defi by offering real-world utility through innovation. Mutuum Finance (MUTM): Innovative Approach To DeFi Mutuum Finance (MUTM) is a project built on the foundation of innovation. It aims to offer as much utility as possible to its users, giving them opportunities for long-term, sustainable growth. This can be seen in how the protocol is designed. The Mutuum Finance (MUTM) protocol is designed for borrowers, lenders, and liquidators to participate freely and derive benefits. Lenders can deposit their funds for the chance to earn interest at a rate determined by the pool’s utilization rate. Borrowers, on the other hand, have a chance to use their assets as collateral to acquire assets that they can use to benefit from crypto market opportunities in real time. Using borrowed assets also has a tax benefit in that they can avoid capital gains. Additionally, borrowing can be used to take advantage of market opportunities as they arise without having to sell assets. They can then repay their loans, once they have made a profit elsewhere on the market, and get back their assets. Liquidators are called in when a loan position goes into distress. When that happens, they are offered a chance to buy the debt at a discount. When a position is liquidated, the borrower is charged a liquidation penalty, which is used as a reward bonus for the liquidator. The rest of the penalty goes into the protocol’s treasury. The allocation factor is used to determine how much the surcharge goes to the treasury and what portion goes to liquidators. As with all aspects of the project, the goal is to find a balance between incentives to ensure rapid liquidation and the long-term solvency of the protocol. Genius Solution For Market Volatility While the crypto market has evolved a great deal over the last decade, a hallmark of the industry is high price volatility, relative to the rest of the market. To counter this volatility, Mutuum Finance requires that all loan positions be overcollateralized. This requirement ensures that a position can be closed quickly without price slippage. In addition, borrowing and lending caps, combined with liquidation parameters, help to limit the exposure of the protocol. When liquidity falls, various incentives may be offered to ensure that there is effective coverage. Price fluctuations can also impact the collateral underpinning a position. If volatility causes collateral to drop below the value of the loan, it could impact the solvency of the protocol. As such, various measures are taken to maintain the loan-to-value (LTV) ratio at the correct level. The liquidation threshold must also be kept at a certain level to ensure that there is enough headroom for liquidators when they buy debt. Assets that are stable and highly liquid, like Ethereum (ETH), will have a high LTV of up to 80% and a liquidation threshold of around 80%. Meanwhile, volatile assets like the DOGE meme coin will have a low LTV of around 40%, while the liquidation threshold is set at around 65%. These parameters are set to ensure there is little chance of sudden price dips that can cause under-collateralization, triggering liquidation. The team asses each token based on various metrics to determine the reserve factor. Assets that have low volatility will typically have a lower reserve factor of around 10%, while more volatile ones can have a reserve factor of up to 35%. The design ensures there is a balance between maintaining the solvency of the protocol and fostering broader participation. Mutuum Finance (MUTM) Presale Giveaway The Mutuum Finance (MUTM) presale is currently in phase 5, and has raised over $10.1 million for over 11,700 unique investors so far. Tokens in the current phase are going for $0.03, a 20% increase from the phase 4 price of $0.025. In the upcoming phase, the price will increase 16.67% to $0.035. So far, over 25% of the phase presale tokens have been sold, barely a week after it began. A major catalyst for this fast pace is the ongoing $100,000 giveaway . Ten lucky winners will each receive $10,000 in MUTM tokens. To participate in this giveaway, a minimum of a $50 purchase in the presale is all that is needed. The MUTM finance presale is a ticket into one of the most innovative DeFi projects of 2025. With a low price of $0.03, this is a huge bargain, and you should not let the opportunity pass you by. For more information about Mutuum Finance (MUTM), visit the links below: Website: https://www.mutuum.com/ Linktree: https://linktr.ee/mutuumfinance
