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  • Introduction
    • Overview
    • FAQ
    • Concepts
      • Liquidity Protocol
      • Supply
      • Borrow
      • Withdraw
      • Liquidations
      • mtTokens
      • Stablecoin
      • Dividends
    • Basic Principles
  • Tokenomics
    • MUTM
      • Allocations
    • Presale Phases
  • Protocol Stability
    • Asset Integration Process
    • Protocol Safeguards and Parameter Framework
    • Market Volatility & Liquidity
    • Price Discovery
    • Address Screening and Wallet Blocking
    • Bug Bounty Program
    • Client Application Security
    • Prevention of Potential Insolvency
    • Model Parameters
    • Mitigating Liquidity Risks for mtTokens
  • Interest Rate Model
    • Borrow Interest Rate and Liquidity Management
    • Stable Interest Rate Model
  • Stablecoin
    • Principle
    • Multi-Asset Collateralization
    • Yield-Generating Collateral
    • Autonomous Minting and Redemption
    • Interest and Discount Rates
    • Issuers
    • Mutuum’s Stablecoin Implementation
    • Borrowing Mutuum’s Stablecoin
    • Repaying and Liquidating Mutuum’s Stablecoin
    • Arbitrage
  • EXTRA
    • L2 Cost Optimization
    • Roadmap
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  1. Introduction
  2. Concepts

Supply

PreviousLiquidity ProtocolNextBorrow

Last updated 29 days ago

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Supplying liquidity in Mutuum underpins the lending ecosystem by allowing depositors to make their assets work passively. Each deposited token, whether it’s a major stablecoin or a more volatile crypto asset, feeds into a framework that balances capital efficiency with overcollateralization principles. In P2C mode, assets go into common pools with variable interest rates driven by utilization, while P2P deposits enable direct interactions with borrowers who negotiate custom terms on riskier tokens.

Every supplier receives mtTokens representing their share of the deposit plus accrued interest, tracked through smart contracts that uphold non-custodial custody. Liquidation safeguards and audits support the protocol’s resilience, ensuring higher-risk positions do not endanger the liquidity of more secure pools. Through automated rate adjustments and transparent open-source code, Mutuum aligns incentives so that both conservative and more adventurous lenders can benefit from real-time interest mechanisms and a user-centric architecture.