As the market shifts toward on-chain trading solutions, many decentralized projects have emerged.

The latest among them is Mutuum Finance. Marketing itself as a decentralized, non-custodial liquidity protocol, Mutuum Finance's goal, according to its whitepaper, is to provide an avenue for users to act as lenders, borrowers, and liquidators.

The market has seen a surge in on-chain trading solutions, leading to the emergence of many decentralized projects. Among them is Mutuum Finance, a decentralized and non-custodial liquidity protocol. Its aim, as stated in its whitepaper, is to provide an avenue for users to act as lenders, borrowers, and liquidators.

Currently in the second stage of its presale, the project has already raised approximately $2.5 million. But is the Mutuum Finance coin a good buy?

Mutuum Finance Summary

Mutuum Finance is a decentralized platform where users can borrow and lend various digital assets via pool-based (P2C) and direct (P2P) models.

The major goal is to connect lenders looking to put their assets to best use and borrowers scouting for overcollateralized loans. Lenders contribute to the liquidity of the ecosystem by constantly depositing their crypto assets, and in return, they earn interest.

Borrowers, on the other hand, will be able to access the deposited funds by providing sufficient collateral. To ensure that liquidity remains accessible at all times, Mutuum Finance says it will ensure that lenders’ yields complement borrowers’ interest payments.

Moreover, interest rates will be adjusted from time to time to align with market conditions, ensuring a dynamic reward structure for lenders and sufficient on-chain liquidity for borrowers.

Mutuum Finance will employ a deposit-token mechanism for those who supply assets to its liquidity pools, minting “mtTokens” at a nominal ratio to the deposited assets.

Lenders hold “mtTokens” until the maturity date of the loans given to borrowers arrives, after which they can now exchange the tokens back for the corresponding amount of the underlying asset.

To drive more liquidity to the ecosystem and incentivize both borrowers and lenders, Mutuum Finance says it has designed a native currency dubbed MUTM.

MUTM Tokenomics

MUTM, according to its whitepaper, has a total supply of 4 billion tokens. They are distributed as follows:

Mutuum Finance Roadmap

Mutuum Finance’s roadmap has been segmented into four stages:

Phase 1 — Introducing Mutuum

This phase is concerned with the initiation of the token presale, launch of marketing campaigns, audit of smart contracts, formation of legal compliance team, and many more.

Phase 2 — Building Mutuum

In this phase, the focus will be on implementing Back-End infrastructure setup, advanced analytical tools, risk parameters, code reviews, and DApp Front-End.

Phase 3 — Finalizing Mutuum

This phase is where the token presale will be concluded, beta testing on the Demo version of the platform testnet will be initiated, and exchange listings will be carried out.

Phase 4 — Delivering Mutuum

This is the final stage of Mutuum’s roadmap, which will see the platform go live, and other important initiatives like multichain expansion, bug bounty, and strategic partnerships implemented.

Mutuum Finance Price Prediction

Mutuum Finance recently arrived on presale and has gained considerable interest, raising close to $2.5 million from early investors. The presale, according to its whitepaper, will run across eleven stages, with $0.6 as its possible listing price.

However, while its use cases are impressive, the project has yet to reveal when it will fully roll out all the plans highlighted in its roadmap. Based on these factors, here is a complete analysis of MUTM’s potential:

Short-Term

The first factor that will influence the price action of MUTM in the short-term is the eventual performance of its presale. While the presale is still in its early phase, with only a stage fully completed at press time, Mutuum Finance’s goal is to complete the sale of the allocated 1.82 billion tokens before preparing for DEX launch.

How soon it is able to achieve this target will determine the degree of pump it will see after listing on exchanges.

Another crucial factor to consider is the overall market dynamics. In the event that the market remains bullish by the time the project completes its presale, it may ride the wave to increase in price. A bearish market outlook, on the other hand, may result in repeated downward movement for MUTM.

Long-Term

Mutuum Finance’s performance in the long run will depend on how soon it is able to implement the plans highlighted in its roadmap. If the platform features are up and running as early as possible, it can help the project gain more attention from the crypto community, particularly those enthusiastic about decentralized lending and borrowing.

Building a loyal community and improving user experience through regular updates will also be crucial, allowing the MUTM price to see a steady rise in value. However, failure to deliver on the roadmap and integrate many innovative features could lead to stagnation, potentially sending the project into obscurity.

Should Investors Buy MUTM Token On Presale?