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The Mutuum Finance (MUTM) protocol is a decentralized non-custodial liquidity pool where users can participate as liquidators, lenders, or borrowers. Lenders on the platform deposit their tokens and receive interest on their assets. The interest they received is tied to the pools utilization rate.

Meanwhile, borrowers obtain loans by depositing collateral of a higher value than the loan they want. There are many benefits to borrowing on Mutuum Finance. For one, you can access liquidity while still retaining ownership of your valuable assets.

Taking a loan ensures you do not have to sell the assets at a potentially unfavorable time. That way, you can benefit from future price increases. This tactic can assist you in funding new opportunities without missing out on potential gains. It is especially so if you believe the value of your collateral will rise in the future.

To protect liquidity on the platform, Mutuum Finance applies a reserve factor. The reserve factors collect a portion of the interest from borrowers. These funds are put into an aggregate pool and are used to offset extreme market swings and defaults.

Tokens that are more stable get small reserve factors, of around 10%, while those deemed as illiquid and volatile receive a bigger reserve factor of up to 35%. The design ensures there is a balance between the solvency of the protocol and the need to diversify the asset base of the protocol.

Details Of The mtTokens

The mtTokens on Mutuum Finance are a deposit token mechanism that is built for those who supply assets to lending pools. When a user deposits $3,150 worth of DAI to a liquidity pool, for instance, they receive mtDAI tokens in return. These tokens are issued on a 1:1 nominal ratio.

The mtTokens are a representation of the users original deposit plus any interest accrued. As such, the protocol updates the redemption value of the tokens in real time to reflect the interest accrued. Over time, the value of each mtToken that can be redeemed continues to rise.

Since mtTokens are compliant with the ERC20 token standard, they can be moved to secondary markets and integrated with other DeFi protocols. That will open up new market opportunities for holders of the tokens, even as their assets continue to accumulate value in the pools.

When a lender is ready, they can deposit the mtTokens back in the pool and get back their assets plus the interest they accrued. By design, this design brings about a high level of transparency in the DeFi space. Protocol users no longer need to actively claim or compound their gains. Instead, the mtTokens themselves are a representation of the value increase.

The system also enables non-custodial ownership, allowing holders to transfer and monitor their deposit position across the various lending positions on Mutuum Finance (MUTM).

From the above, Mutuum Finance (MUTM) aims to create the future of DeFi. It gives users more earning opportunities while ensuring true non-custodial ownership. If you are looking to be part of the future of DeFi, the MUTM token presale presents the perfect opportunity. At the current low price of $0.03, this is a bargain you should not miss.