The crypto market is going through a transition right now, which has seen investors shift into new coins with better returns. One of the most promising coins right now is Mutuum Finance (MUTM). It aims to bring about real change in the decentralized finance (DeFi) sector, and a huge early supporter base agrees. Let us look at why this project is so popular with early investors.
Revolutionary Cost-Cutting On Layer 2
One of the main draws of Mutuum Finance (MUTM) is the revolutionary cost-cutting measures on layer 2 (L2). To do so, they focus on calldata, a major source of fees. The protocol will compress all information into a single byte-encoded string to cut back on this data. This will reduce on-chain storage and per-transaction expenses.
Mutuum Finance expects to support a limited number of assets, ensuring that it can assign each token a compact identifier, for example, using 16 bits instead of the full 160-bit address. This genius innovation will cut back the overhead of data transmission, making the platform cost-effective, in line with its goal of delivering scalability and accessibility in DeFi.
Massive Earning Opportunity
Mutuum Finance (MUTM) is a decentralized non-custodial protocol that allows lenders to deposit assets and earn passive income. The rate at which they earn interest on their assets is determined by a pool’s utilization rate. It is designed to ensure maximum capital efficiency for all participants.
Liquidity Management Measures
Early DeFi projects swung the doors open for all participants, which often worked to their detriment. To protect liquidity on the platform and keep it from diffusing off the platform, Mutuum Finance (MUTM) has put in measures to grow liquidity and keep low-quality assets off the platform.
The first measure is that only a limited number of vetted assets will be allowed. Assets on the platform will be assigned a Loan-to-Value Ratio (LTV) to help mitigate risk on the platform. This will include setting up an appropriate liquidation threshold to preserve sufficient headroom for liquidators who stabilize at-risk loans.
Assets with low volatility, like stablecoins and MATIC, will have a higher LET of up to 75%, and an average liquidation threshold of 80%. Additionally, volatile assets are assigned a low LTC of around 40% and a liquidation threshold of around 65%. It helps to ensure that, in case of a sudden price drop, it does not cause under-collateralization and trigger liquidation.
Another metric used to protect liquidity is the reserve factor. Assets that have low volatility could be assigned a reserve factor of around 10%, while more volatile ones could rise to 35%. It secures the protocol’s health and ensures broad participation of a wide range of assets.
Robust Security Checks
Mutuum Finance (MUTM) prioritizes security on the protocol. This can be seen in the recent Certik audit, which it passed with ease. To protect users of the platform, it has implemented several security measures. They include:
DDoS Protection
The platform will utilize cloud-based DDoS mitigation services. They will monitor all incoming requests and filter out bad actors. It ensures that the platform has the highest uptime possible during surges in demand.
Domain Integrity
TO prevent DNS spoofing and illegal domain transfers, Mutuum Finance will deploy DNSSEC (Domain Name System Security Extensions). This technique is used to validate DNS data and cut back on tampering attempts. It will also perform ongoing monitoring and regular DNS configuration updates.
IPFS Deployment and Naming
Every new build of the interface will be deployed on a decentralized storage solution like IFPS. IT will also be tracked using a DNSLink standard. By pinning deployments to unique IPFS hashes, Mutuum Finance can have tamper-evident updates at the front-end, improving transparency and trust.
Intrusion Detection Systems (IDS)
The front end will be protected using IDS to detect suspicious actions. By analyzing traffic in real time, the system can identify and respond to intrusions and reduce the chance of a data breach or unauthorized access.
Code Modification Checks
To ensure there are no malicious changes to the code, the Mutuum Finance project will use Content Security Policy (CSP) and Subresource Integrity (SRI). It will ensure that only approved scripts run on the interface.
Success Of Ongoing Mutuum Finance (MUTM) Presale
Another reason why early investors bet big on Mutuum Finance is the success of the presale. So far, the presale has raised over $9.9 million from over 11,500 early supporters. The presale is currently in phase 5, where over 20% of the tokens in this phase have already been sold, barely a week after it launched.
In the upcoming phase, the price of the presale tokens will increase by 16.67%, making this the best time to buy these tokens. Early investors who discovered this project in Phase 1 got their tokens at just $0.01. They have since been finding the best exit time from other assets and quietly filing into Mutuum Finance.
You too have a chance to be part of this revolutionary project that will redefine the future of decentralized finance.
For more information about Mutuum Finance (MUTM), visit the links below:
Website: https://www.mutuum.com/
Linktree: https://linktr.ee/mutuumfinance
