The broader crypto market has seen a resurgence, with Bitcoin (BTC) rising above $105k, while Ethereum (ETH) has crossed the $2,500 mark. As the markets start to rally again, the crypto market is watching Shiba Inu (SHIB) and Mutuum Finance (MUTM), which is currently receiving growing attention from SHIB investors.
SHIB Price Prediction
Shiba Inu (SHIB) has one of the biggest ecosystems in the crypto sector, with over 1.5 million holders. This is in line with the cult-like following that the project has on social media. Many of them are waiting for the next market movement as an exit opportunity to direct capital into Mutuum Finance (MUTM).
So far, Shiba Inu (MUTM) has not reacted to the price movement of Bitcoin (BTC). Its price has continued to trend downward, and it is down over 16% in the past month. While SHIB has a large market cap, placing it at position 19 by overall market cap size, it has struggled to find growth recently.
The stagnant price movement comes amid recent upgrades to the blockchain that were expected to spur some major price movement. One explanation for why this is happening is meme coin fever. When the developer team has attempted to build some utility into the ecosystem, SHIB’s price movement is still mainly driven by hype.
However, price movement is still expected, with SHIB investors eagerly waiting for SHIB to start rising so they can move into Mutuum Finance (MUTM).
Mutuum Finance (MUTM): The Future Of DeFi
Mutuum Finance (MUTM) is turning heads in the crypto world, thanks to its unique protocol design and the success of its ongoing presale. Unlike SHIB, which thrives on hype, Mutuum Finance (MUTM) has won over investors with utility.
Mutuum Finance Protocol Is Built For Utility
The Mutuum Finance protocol is a decentralized non-custodial protocol that allows users to participate as borrowers, lenders, or liquidators. Lenders on the platform deposit their assets to earn passive income through interest. The interest rate they earn is set dynamically based on the pool’s utilization rate.
Managing Market Volatility
To protect the solvency of the protocol, Mutuum Finance has measures in place to manage on-chain liquidity and volume. These two metrics are crucial to prompt liquidations within the ecosystem. By ensuring there is enough liquidity, distressed positions can be quickly closed without price slippage.
The project also used caps and strict parameters to control exposure. For example, when there is limited liquidity, the protocol could increase incentives for liquidators to quickly purchase debt, reducing the chances of insolvency.
Price fluctuations are another major factor considered in Mutuum Finance. If there is heightened volatility, it can cause positions on the lending protocol to become undercollateralized. To avoid this scenario, the protocol uses the loan-to-value (LTV) ratio parameter. The LTV ensures there is enough of a moat for liquidators to come in and stabilize a position.
Assets that are considered stable, based on various metrics, such as ETH and stablecoins, will be assigned a high LTV of up to 75% and a liquidity threshold of around 80%. Meanwhile, assets considered to be unstable based on a slew of metrics can get an LTV of up to 40% only. The liquidation threshold for these assets is also significantly lower at around 65%. These parameters ensure that during massive fluctuations, the loans on the protocol do not become undercollateralized.
The protocol also assigns assets a reserve factor. This reserve factor is a portion of the interest that borrowers pay. It goes into an aggregate pool that is used to protect the protocol during extreme market movements. For stable assets, the reserve factor can be around 10%. High-volatility assets like meme coins can have a reserve factor of as high as 35%.
Mutuum Finance (MUTM) Presale Progress
The Mutuum Finance (MUTM presale has been doing exceptionally well so far. Over $10.3 million has been raised in the ongoing presale from over 11,900 unique contributors. The presale tokens are currently going for $0.03 in phase 5 of the presale. In the upcoming phase 6, the price will increase by 16.67% to $0.035. Over 26% of the tokens set aside for phase 5 of the presale have already been sold, barely a week after it started.
One of the leading contributors to the current fast pace of the presale is the ongoing $100,000 giveaway. The giveaway has received widespread attention from the crypto community, boosting presale participation. To qualify for the giveaway, you only need to participate in the presale with a minimum of $50. Ten lucky winners will each receive $10,000 worth of MUTM tokens.
Summary
Mutuum Finance (MUTM) is a project that has increasingly received attention from Shiba Inu (SHIB) investors. Those investors are seeking stable, long-term rewards, and as soon as SHIB starts rising again, they will use the opportunity to move out and enter Mutuum Finance for consistent growth. You have a chance to be part of this future of growth, powered by raw utility and commitment to the future of DeFi at the low price of $0.03.
For more information about Mutuum Finance (MUTM), visit the links below:
Website: https://www.mutuum.com/
Linktree: https://linktr.ee/mutuumfinance
