DUBAI, United Arab Emirates, Jan. 30, 2026 (GLOBE NEWSWIRE) — Mutuum Finance has recently announced the achievement of several technical and community milestones as it moves through its 2026 development roadmap. The project, which focuses on decentralized lending and borrowing, has officially activated its V1 protocol on the Sepolia testnet. This transition from conceptual design to a functional testing environment coincides with the project surpassing 19,000 individual holders and raising over $20.1 million through its phased token distribution.
Overview of Mutuum Finance (MUTM) Architecture
The core of Mutuum Finance is a decentralized, non-custodial protocol designed to facilitate credit markets on the blockchain. The system utilizes a dual-market framework to serve different user needs within a single ecosystem. This design consists of Peer-to-Contract (P2C) and Peer-to-Peer (P2P) lending models.
In the P2C model, users contribute assets like ETH or USDT to shared liquidity pools. These pools allow for immediate borrowing, with interest rates that adjust automatically based on supply and demand.
In contrast, the P2P model is designed for direct matching, where lenders and borrowers can define specific terms for more customized loan agreements. All borrowing within the protocol is over-collateralized, meaning users must provide digital assets of higher value than the amount they borrow to ensure system solvency.
This safety mechanism is managed through the Loan-to-Value (LTV) ratio, which determines exactly how much a user can borrow against their deposited collateral. A higher LTV allows for more liquidity, while a lower LTV provides a larger safety cushion against market volatility.
For example, if the protocol sets an LTV of 75% for Ethereum, a user who deposits $1,000 worth of ETH as collateral can borrow a maximum of $750 in another asset like USDT. If a user chooses to be more conservative and borrows only $500 against that same $1,000 deposit, their personal LTV would be 50%, giving them much more protection if the price of ETH happens to drop.
V1 Protocol Features and mtTokens
The V1 launch is a massive leap forward, marking the official arrival of the foundational components that power the Mutuum Finance lending engine. This monumental milestone finally opens the door for public testing of the protocol’s high-performance mechanisms. At the heart of this system are the Liquidity Pools, which serve as the robust digital warehouses where assets are securely stored for lending.
Suppliers are rewarded with mtTokens, the revolutionary interest-bearing receipts that represent a user’s deposit and grow in redeemable value automatically as the protocol collects interest from borrowers.
To keep the system perfectly balanced, Debt Tokens act as precise accounting tools to track every borrower’s outstanding principal and accrued interest in real time. Ensuring the entire ecosystem remains rock-solid is the Liquidator Bot, an advanced and automated risk management powerhouse that constantly monitors the health factor of every loan and secures the platform by managing collateral the moment it dips below safe levels.
By using mtTokens, the protocol aims to provide a transparent way for participants to track yield without the need for manual claiming processes. This system is further supported by a buy-and-distribute model, where a portion of protocol fees is used to purchase MUTM tokens on the open market for redistribution to stakers.
Security Infrastructure and Audits
To address the inherent risks of decentralized finance, Mutuum Finance has implemented a multi-layered security strategy. The protocol’s smart contracts have undergone a formal security review by Halborn, a cybersecurity firm specializing in blockchain infrastructure. This audit was conducted to verify the logic of the lending and borrowing contracts ahead of the V1 release.
Additionally, the project maintains a token scan score of 90/100 from CertiK and has established a $50,000 bug bounty program. This program is intended to incentivize independent security researchers to identify and report potential vulnerabilities. These measures are part of the project’s effort to establish a stable operational base before the mainnet deployment.
Presale Structure and Distribution
The distribution of the MUTM has followed a structured presale model that began in early 2025. The project has defined a total supply of 4 billion tokens, with 45.5% (1.82 billion tokens) allocated to the presale. Current data indicates that over 835 million tokens have been sold across the various funding stages.
The presale is currently in Phase 7, where the price is set at $0.04 per MUTM. This follows a progression from the initial price of $0.01 at the start of the offering. The project has disclosed a planned official launch price of $0.06. To manage the distribution process, the presale supports multiple payment methods, including various cryptocurrencies and direct card purchases. The project also maintains a 24-hour leaderboard that provides $500 in tokens to the top daily contributor as a method of encouraging consistent participation.
Furthermore, the team has outlined plans for integration with Layer-2 networks. By moving certain protocol functions to Layer-2, the project aims to reduce transaction costs and increase processing speeds.
This expansion is expected to coincide with the integration of decentralized oracles, such as Chainlink, to ensure that asset pricing remains accurate across different blockchain environments. These updates are scheduled to follow the successful conclusion of the current V1 testing period.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
