While Cardano (ADA) has some great points and a solid value proposition, it has struggled in recent years to find a footing. The demand for its platform has not yet reached the heights initially projected. The price of Cardano (ADA) has remained frustratingly low for years, with 10-year price forecasts indicating that there will be little to no price movement. Considering the new all-time high for Bitcoin, with the market roaring, the disappointment for Cardano supporters has become even more glaring. Cardano (ADA) investors have been finding solace in Mutuum Finance (MUTM) , which could become one of the hottest DeFi projects of 2025. Mutuum Finance (MUTM) represents practical technical perfection While Cardano (ADA) has worked to be technically perfect, the project has missed the human element in its design. This is where Mutuum Finance (MUTM) makes the real difference. It offers sound solutions that address the real-world needs of people. Balancing market volatility and liquidity The Mutuum Finance (MUTM) project strikes a perfect balance between raising liquidity on the protocol and keeping volatility in check. The measures in place ensure that positions that fall in low liquidity can be closed without leading to price slippage. One of the ways it does this is via stringent parameters that help to keep lenders safe. For instance, when there is low liquidity, the protocol revs up the incentives for liquidators to maintain coverage at the right level. Price fluctuations have also been dealt with on Mutuum Finance (MUTM). Such fluctuations could impact collateral underpinning borrow positions. If volatility causes collateral to dip below a set parameter, it could affect solvency. The protocol has measures in place to ensure a perfect Loan-to-Value (LTV) ratio. The liquidation level is set at a level that ensures there is headroom for liquidators to make a profit while stabilizing the ecosystem. Assets with low volatility, like ETH and stablecoins, are given a higher LTV of up to 75% and a liquidation threshold of 80%. Meanwhile, high volatility assets are given an LTV of around 40%, with a liquidation threshold of around 65%. These measures ensure that the protocol is not destabilized by sudden market shifts that cause under-collateralization. Finally, the platform applies an overall ratio for each asset to determine the reserve factor. Less volatile assets might be awarded a share of around 10%, while more volatile ones can rise up to 35%. This ensures that depositors’ investments are safeguarded at all times, to promote wide market participation. Benefits of borrowing on Mutuum Finance (MUTM) One of the benefits of using collateral to borrow assets is the ability to unlock collateral without selling assets. That ensures you can avoid capital gains tax while ensuring you do not miss out on future growth. For example, if you believe Ethereum (ETH) will appreciate in value, you can use it as collateral to access a stablecoin. The funds can be invested elsewhere, and the returns used to cover the interest payments. However, you retain exposure to future ETH gains. Borrowing can also be used as part of a hedging strategy to amplify yields via leverage positions. It can also be used to quickly access new opportunities in the market, without giving up ownership of your assets. Mutuum Finance presale picks up steam The Mutuum finance (MUTM) has made two recent announcements that have increased buying pressure on the presale tokens. First, they released the Certik audit report, which showed that MUTM was a safe platform for investors. Even before the ink had dried on that investment, they announced that they would release a beta version of the platform on listing day. These two announcements have pushed the token presale to over $9.7 million, with over 11,400 participants. Each token in the Phase 5 presale is going for $0.03, a 20% increase from the Phase 4 price of $0.025. Those who buy their tokens in the current phase stand to make a 100% ROI based on the listing price of $0.06. In the upcoming phase 6, when the token price rises by 16.67% to $0.035, the ROI will dip to 71.43%. Given the pace of the current Phase 5 presale, where over 15% of the tokens have been bought, less than a week after it started, analysts have upped their forecasts. They predict that MUTM tokens could rise to up to $5 after listing. A major exchange listing, which is expected to happen, could push those gains even further. Cardano investors, who have consistently prioritized utility, have already identified this project as their next major winner. At the current low price of $0.03, this is an opportunity you too should consider. For more information about Mutuum Finance (MUTM), visit the links below: Website: https://www.mutuum.com/ Linktree: https://linktr.ee/mutuumfinance The post MUTM takes the market by storm, leaving ADA behind appeared first on Invezz
