What is Mutuum Finance?
Mutuum Finance is a decentralized, non-custodial liquidity protocol that enables users to participate as lenders, borrowers, or liquidators within the decentralized finance (DeFi) ecosystem. Lenders can deposit their cryptocurrency assets into Mutuum’s liquidity pools to earn interest, while borrowers can obtain overcollateralized loans by providing sufficient collateral.
Key Features:
- Peer-to-Contract (P2C) Model: This model connects lenders and borrowers through a shared liquidity pool, enhancing capital efficiency. Depositors earn interest on supplied funds, while borrowers provide overcollateralized collateral to ensure stability. Interest rates adjust dynamically based on usage, fostering a balanced ecosystem.
- Peer-to-Peer (P2P) Model: Mutuum also offers a P2P model that allows users to directly lend and borrow more speculative assets, such as PEPE or SHIB, while preserving the protocol’s overall security. By isolating these volatile tokens in a dedicated marketplace, users can explore a wider range of trades.
- Variable and Stable Borrow Rates: Users have the option to choose between variable and stable borrow rates to best meet their preferences. Variable rates fluctuate based on pool utilization, while stable rates remain fixed, ensuring predictable repayments.
- Passive Dividend Yield: Mutuum allows users to passively receive dividends derived from the platform’s profits. The protocol purchases its native token, MUTM, at market price and distributes it to users who contribute to the platform’s security. This approach rewards users and applies consistent buying pressure on the platform’s token.