Mutuum Finance raises $19 million through presale…plans to pursue buyback

Decentralized lending protocol Mutuum Finance said on the 30th (local time) that "it will raise the price per token to $0.04 in the Phase 7 presale."

Mutuum Finance is currently conducting the Phase 6 presale of its native token, MUTM. The MUTM presale is structured in phases and automatically moves to the next phase as token demand increases. A fixed price per token is applied for each presale phase.

The token price for the current Phase 6 presale is $0.035. If the presale moves from Phase 6 to Phase 7, the token price would rise by about 14.3%.

The MUTM presale began earlier this year. The fixed token price at that time was $0.01. According to Mutuum Finance, the expected launch price of MUTM is $0.06.

The total supply of MUTM is 4 billion tokens, of which 1.82 billion tokens, or about 45.5%, have been allocated to the presale. The token allocation for the Phase 6 presale is 170 million tokens. Mutuum Finance said "about 95% of the (Phase 6 presale) allocation has already been exhausted," adding, "so far we have raised about $19 million (about KRW 28 billion) through the presale."

As of this date, about 18,200 investors have purchased MUTM through the presale. The introduction of card payment services to the presale appears to have boosted retail investor participation. Mutuum Finance has also introduced a reward system that grants top daily community contributors MUTM worth $500.

Testnet launch within the year

Mutuum Finance will also launch the V1 protocol on the Sepolia testnet in Q4. The protocol will support features such as real-time liquidity pools, the revenue-generating mt token (mtToken), debt-tracking tokens, and automated liquidation bots. Users will be able to test lending, borrowing, and collateral functions on the Sepolia testnet using Ethereum (ETH) and Tether (USDT).

Mutuum Finance is releasing the V1 protocol on the testnet first to support interaction between the community and the protocol before mainnet deployment. Mutuum Finance explained, "(Through the testnet) we can provide an open testing environment and encourage early user participation," adding, "ahead of a broader service launch, feedback will allow the development team to further refine protocol functions."

Mutuum Finance is considering conducting the token generation event (TGE) in line with the beta service launch schedule. The judgment is that a functioning service should be available when MUTM begins trading. The company said that initial user data accumulated at that stage will serve as key indicators demonstrating how the protocol actually performs.

Revenue-based buyback also planned

A revenue-based buyback is also planned. Mutuum Finance intends to use revenues generated from lending fees and other sources to buy MUTM on the market and then redistribute those tokens to users who have staked mt tokens. A Mutuum Finance representative said, "The buyback mechanism is designed so that actual protocol revenue, rather than inflationary issuance, is directly connected to staking rewards, contributing to tokenomics in the long term."

With the testnet launch, Mutuum Finance plans to offer P2C (Peer-to-Contract) and P2P (Peer-to-Peer) lending services simultaneously. The P2C lending service is designed so that when users deposit assets they receive mt tokens according to their allocated share and earnings, and when borrowers repay interest the value of mt tokens increases.

P2P lending is a service that allows negotiated loans for tokens with high price volatility. It will offer both variable and fixed interest rate options, and loans will be managed through collateral-to-value (LTV) limits that adjust according to asset volatility, Mutuum Finance said. A Mutuum Finance representative stated, "Collateral requirements and overcollateralization settings are used to maintain protocol stability," adding, "LTV ratios will vary from 35% to 95% depending on the asset's risk level."

The protocol will also introduce a dollar-based stablecoin. The stablecoin will be minted and burned according to the needs of the Mutuum Finance network. Mutuum Finance plans to maintain the stablecoin's value at $1 through borrowing rate management.

Mutuum Finance explained, "If the (stablecoin's) value deviates from $1, it is designed to restore price equilibrium through arbitrage mechanisms," adding, "the issuance, redemption, and liquidation of the stablecoin will generate repetitive trading demand within the system, creating predictable fee flows."