Nasdaq-listed Davis Commodities (DTCK) recently announced that it had gotten approval for a $30 million fundraising plan. The company has a strategic plan to invest 15% or $4.5 million of the funds into Bitcoin in the first phase. Its portfolio will consist of spot ETFs, Bitcoin, and cold wallet storage.
The initiative has the goal of enhancing asset allocation, improving operational flexibility, and strengthening counterparty confidence. According to its statement, Bitcoin is a digital gold hedge against inflation.
It believes this due to several reasons, including the supply cap of 21 million, and its status as the world’s fifth-largest asset. It will implement several risk-management parameters, including volatility hedging mechanisms to protect its investment from market volatility. The company plans to use BTC as both a long-term reserve asset and as a liquid instrument to support trading needs and investment opportunities.
Amid this growing mainstream adoption of Bitcoin (BTC), analysts expect another bull cycle going forward. According to them, the price of BTC could rise to $150,000 per coin in the coming months. Due to the high correlation in the crypto market, this would also lead to massive gains for the rest of the sector.
To take full advantage of this wave of growth, investors are scanning the presale market for promising opportunities. One of the best so far is Mutuum Finance (MUTM), which is built on the solid foundation of utility. Its protocol design and the current success of the presale make it a promising contender. So far, analysts have given very optimistic forecasts; they predict that the value of the MUTM tokens could rise 20x once it goes live.
The MUTM token presale
Mutuum Finance is currently in phase 5 of the presale. So far, over $10.8 million has been raised in the ongoing presale, which is in phase 5. Tokens in the current phase are going for $0.03 each, a 200% increase from the phase 1 price of $0.01.
The presale has attracted a large audience, with around 12,250 buyers so far. In the upcoming phase 6 of the presale, the price will go up by 16.67% to $0.035. That increase will also reduce the guaranteed ROI from 100% to 71.43%, based on the planned listing price of $0.06.
The expected reduction in guaranteed ROI has added fuel to the fire, which has seen 40% of the tokens set aside for phase 5 of the presale sold, barely two weeks after they launched. Another contributing factor to the current pace is the ongoing $100,000 giveaway.
In the giveaway, Mutuum Finance (MUTM) plans to reward ten lucky presale participants with $10,000 worth of MUTM tokens each. To qualify for this giveaway, you only need to invest $50 in the ongoing presale.
Besides the giveaway, Mutuum Finance has also organized a leaderboard, where the top 50 contributors to the presale will each receive MUTM token bonus rewards.
Details of Mutuum Finance (MUTM)
The Mutuum Finance (MUTM) DeFi project is built for lenders and borrowers. The protocol allows users to deposit assets to earn interest. These interest payments are dynamically set by market forces based on the pool utilization rate.
As more borrowers take loans from a pool, the utilization rate rises, which pushes up the interest rate. This rising rate encourages borrowers to repay their loans to avoid the higher rates. Meanwhile, the higher yields attract more liquidity providers looking for higher yields. As the total liquidity in the pool rises, it lowers the interest. This loop ensures that protocol liquidity grows over time, while the system achieves optimal capital efficiency.
To promote liquidity in the protocol, which is needed for long-term protocol stability, the Mutuum finance platform will launch a liquidity mining program. In this program, liquidity providers will receive MUTM token rewards for depositing their funds in the pools.
To ensure the best overall outcome, the liquidity program will focus on high-value assets with high liquidity and low volatility. These are the assets in demand throughout the crypto market and will ensure the protocol’s user base will grow. They will not offer liquidity mining rewards to low-value assets, which will ensure exposure to volatility on the platform is limited.
To secure the lenders’ liquidity, Mutuum Finance has an overcollateralization requirement for all loans. That means borrowers will have to deposit assets of more value than the loan they intend to take.
The protocol will also feature a liquidity threshold, which will vary based on real-time market movements. If the collateral’s value falls below the set threshold, liquidators will step in and purchase the debt at a discount, thereby stabilizing the ecosystem.
Summary
Mutuum Finance (MUTM) is an exciting crypto project that could generate massive returns for its early investors. Amid growing adoption of crypto by institutional investors, the future looks great for utility-based tokens like MUTM. So far, conservative estimates forecast that MUTM tokens could rise 20x after they go live. Do not let this massive opportunity for growth pass you by.
For more information about Mutuum Finance (MUTM), visit the links below:
Website: https://www.mutuum.com/
Linktree: https://linktr.ee/mutuumfinance
DISCLAIMER – “Views Expressed Disclaimer: This article is not financial advice. Cryptocurrencies are volatile and unpredictable. Due diligence and caution are paramount. Views and opinions expressed are those of the authors and do not reflect the official position of any other author, agency, organization, employer or company, including NEO CYMED PUBLISHING LIMITED, which is the publishing company performing under the name Cyprus-Mail…more
