DUBAI, United Arab Emirates, Feb. 05, 2026 (GLOBE NEWSWIRE) —
Mutuum Finance (MUTM) has entered a new stage of development as it advances into Roadmap Phase 3 with the activation of its V1 protocol. This milestone represents a key step in the rollout of the platform’s decentralized lending and borrowing framework, shifting the project from planning and testing toward live functionality.
With the V1 protocol now active, users can begin interacting with core features such as liquidity pools, lending mechanics, and on-chain risk controls in a controlled environment. As development continues, this phase is expected to focus on refining protocol performance, security, and user experience—factors that analysts often track when evaluating early-stage DeFi projects.
Understanding the Mutuum Finance (MUTM) Ecosystem
Mutuum Finance is developing a protocol that aims to solve the problem of liquidity for long-term asset holders. In traditional markets, accessing cash often requires selling property. In this DeFi crypto model, users can instead use their digital assets as collateral to access liquidity without losing ownership. The protocol’s design is structured around a dual-market lending system to accommodate various user needs.
The P2C market is designed to use shared liquidity pools managed by smart contracts. Users would supply assets to these pools, and borrowers would access liquidity by providing collateral. Borrowing limits are planned to be controlled by a loan-to-value (LTV) ratio. For example, with a 70% LTV, depositing $10,000 worth of crypto would allow a borrower to take out up to $7,000, helping manage risk within the system.
The P2P market is being developed to support loans matched directly between lenders and borrowers. This model is intended to allow more flexible loan structures, where terms such as interest rate and duration can differ from pooled lending. LTV limits would still apply to help protect both sides of the loan.
Technical Features and mtTokens
A central part of the Mutuum Finance’s whitepaper architecture is the mtToken system. When a user supplies assets to a liquidity pool, the protocol issues mtTokens as a digital receipt of the deposit. These tokens represent the user’s share of the pool and act as yield-bearing assets.
Unlike systems that require users to manually claim rewards, mtTokens are designed to increase in value relative to the underlying asset as interest is repaid by borrowers. This mechanism simplifies the user experience by automating yield accrual.
Additionally, the protocol’s roadmap features a buy-and-distribute model. A portion of the fees generated by the platform is used to purchase MUTM tokens from the open market, which are then distributed to participants who stake their mtTokens in the safety module.
Protocol Launch and Halborn Security
The project has reached a major technical milestone with the activation of the V1 protocol on the Sepolia testnet. This release allows the community to interact with the core lending and borrowing logic in a controlled environment using test tokens. The V1 version includes the initial liquidity pools, the mtToken minting process, and the debt tracking system.
Security has been a primary focus during the development of the V1 protocol. Mutuum Finance has completed an independent security audit of its lending and borrowing smart contracts conducted by Halborn Security. This firm is known for reviewing some of the largest architectures in the blockchain industry. The audit was intended to verify the integrity of the code and the logic behind the risk management systems.
Risk Management and Future Roadmap
To maintain the stability of protocol markets, Mutuum Finance incorporates several risk management tools. Every loan on the platform is over-collateralized, meaning the borrower must provide assets worth more than the loan amount. The protocol uses Loan-to-Value (LTV) limits to define the maximum borrowing capacity for each asset type.
Furthermore, the system utilizes an Automated Liquidator Bot. This bot monitors the “health factor” of all active loans. If the value of a borrower’s collateral falls below a safe threshold, the bot can trigger a liquidation to repay lenders and ensure the protocol remains solvent.
Looking beyond the V1 protocol launch, the project’s roadmap includes plans for a native over-collateralized stablecoin. This asset is intended to provide borrowers with a stable unit of account that is backed by the interest generated within the protocol. There are also plans for Layer-2 (L2) integration. By expanding to L2 networks, the protocol aims to offer faster settlement times and significantly lower transaction fees for users.
Presale Progress and Distribution
The distribution of the MUTM token has followed a structured, phased presale model that began in early 2025. The project has reported significant community engagement, having raised over $20.4 million with a holder base of more than 19,000 individuals.
The presale is currently in Phase 7, where the MUTM token is priced at $0.04. This follows a progression from the initial Phase 1 price of $0.01, representing a 300% surge across the different stages of the distribution. The total supply of MUTM is fixed at 4 billion, with 45.5% (1.82 billion tokens) allocated to the presale stages. To date, more than 840 million tokens have been sold.
The project has stated that the official launch price for the token will be $0.06. Participation in the presale has been made accessible through multiple payment options, including various cryptocurrencies and a direct card payment feature. As Mutuum Finance moves closer to its mainnet deployment, the focus remains on refining the protocol’s performance and completing the remaining steps of its 2026 roadmap.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
