Conversely, Mutuum Finance offers a decentralized lending system where users can provide assets, earn interest, and borrow money without closing their positions. This method ensures liquidity while maintaining asset ownership, distinguishing MUTM from hype or speculative tokens.
The presale of the project has quickly gained more than 3,200 holders and raised over $1.65 million. At this stage, investors can buy MUTM for $0.015, an exclusive opportunity prior to subsequent presale rounds drive prices up. Interestingly, 110 million tokens were sold out within 10 days in the first phase, indicating strong demand for the platform.
How Mutuum Finance Works:
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Peer-to-Contract (P2C): Users add assets to liquidity pools, earning yield relative to pool usage. Borrowers then provide overcollateralized collateral to draw from these pools.
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Peer-to-Peer (P2P): Borrowers and lenders negotiate loan terms directly, accommodating a broader range of assets beyond those typically offered in standard pools.
This flexibility enables liquidity providers to generate passive income, while pool shares that accrue interest continuously are represented by mtTokens, which are received by depositors. These tokens can be claimed at any time for earnings plus the initial asset.
Additionally, Mutuum Finance intends to launch an overcollateralized stablecoin supported by platform collateral, providing decentralized stability. This differs from traditional stablecoins based on centralized support.
A key characteristic is the buy-and-distribute process: A fraction of platform fees periodically purchases MUTM tokens, which are distributed to mtToken stakers. This creates persistent buy pressure, supporting consistent token value and rewarding long-term players.
