By The crypto market has recently witnessed a massive surge, with the price of Bitcoin (BTC) recently surging to a new all-time high above $110k.
The surge led to many flashy headlines, with many newbie investors joining Bitcoin (BTC) near the top.
However, seasoned investors know the best entry point into the crypto market is to find projects bursting at the seams with potential like Mutuum Finance (MUTM) before they make the headlines.
Let us take a closer look at Mutuum Finance (MUTM) and why analysts are so excited about its future.
Mutuum Finance (MUTM) is poised for huge gains
Mutuum Finance (MUTM) is one of the most exciting crypto projects in a long time.
It represents shifting investor interest from meme coins to projects that offer long-term value to their community.
The project, which is built as a decentralized non-custodial protocol, allows users to participate as lenders, borrowers, or liquidators.
As a lender, users have a chance to earn interest on their idle assets by depositing them in a pool.
The interest earned is determined by the pool’s utilization rate and can quickly add up based on the asset type and the demand from borrowers.
To ensure the long-term solvency of the platform, Mutuum Finance has introduced several notable technical innovations.
Thoughtful asset integration process
The crypto market is massive, and crypto assets come in all different flavors.
Mutuum Finance aims to ensure that users of the platform have the best options possible. In line with this philosophy, the team has a long list of metrics that it uses to determine if an asset should be added to the platform. These checks include:
Transaction costs
Each asset added to the protocol introduces a new level of code complexity, which pushes up the gas fee.
The goal of Mutuum Finance is to strike a balance between offering users as many options as possible while keeping costs as low as possible.
Volatility and liquidity
Assets with high volatility and low liquidity could potentially impact the solvency of the protocol.
To avoid this issue, Mutuum Finance will conduct an in-depth assessment to determine the suitability.
Based on the assessment, some tokens may be added in an isolated or restricted model.
By vigorously checking tokens and creating specialized frameworks for some tokens, they ensure that users have access to a diverse list of assets while still protecting the protocol’s solvency.
Centralization check
Mutuum Finance will check whether an asset has issues with centralization before it is added.
Assets that are under the control of a single entity could potentially be shut down at a moment’s notice, impacting the overall stability of the protocol.
Before adding a token, the team will weigh user demand compared to the overall solvency of the protocol.
Oracle manipulation checks
The Mutuum Finance project will also add safeguards against oracle manipulation.
If a digital asset is found to have an unreliable price oracle, it may be accepted, but with massive restrictions.
For instance, it could be placed in non-collateral status. Limiting how such an asset can be used ensures there is a safeguard against exploits that rely on sudden price changes.
When an asset is restricted from being used as collateral, its impact on solvency is more limited.
The reason for this is that collateral represents the protocol’s assets. As such, those holding the assets must over-collateralize their position to maintain solvency.
If an asset is restricted from being used as collateral, the position needs to be excessively backed by high-quality assets.
Once assets are accepted on the platform, various metrics will be used to monitor them, such as liquidation thresholds, loan-to-value, and liquidation bonuses.
These metrics can be tweaked to ensure that a token does not impact the solvency of the protocol when market dynamics change.
MUTM presale performance
Based on the technical ingenuity in creating the Mutuum Finance project, the MUTM token presale has attracted overwhelming support. So far, over $10.1 million has been raised.
So far, over 11,700 unique buyers have secured their tokens and are looking forward to the listing, when their value could explode 10x or more.
The presale is in phase 5, where tokens are going for $0.03. In Phase 4, the token price was $0.025 and has since increased by 20%.
The price is set to increase 16.67% to $0.035.
This stepped increase ensures that the earliest supporters will enjoy the greatest benefits.
Do not let this opportunity pass you by. With a planned listing price of $0.06, current participants in the Phase 5 presale stand to make a 100% ROI when the tokens are listed.
Analysts predict that the price could rise to as high as $2 once the tokens go live.
For more information about Mutuum Finance (MUTM), visit the links below:
Website: https://www.mutuum.com/
Linktree: https://linktr.ee/mutuumfinance
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