DUBAI, United Arab Emirates, Feb. 06, 2026 (GLOBE NEWSWIRE) — The decentralized finance space continues to develop as more projects move from design stages into active testing. Mutuum Finance (MUTM) has recently reached a technical milestone with the activation of its V1 protocol on the Sepolia testnet.
This update opens a public testing phase where users can interact with the platform’s core lending and borrowing features in a controlled, risk-free environment. The purpose of this stage is to observe system behavior, gather feedback, and refine functionality before any future transition toward a mainnet deployment.
What Mutuum Finance (MUTM) Is Building
Mutuum Finance is a non-custodial protocol designed to facilitate digital asset management through automated smart contracts. The project aims to provide a decentralized alternative to traditional credit systems by allowing users to lend and borrow without a central intermediary. Its primary innovation is a dual-market lending model that seeks to address different liquidity needs within a single ecosystem.
The first component is the Peer-to-Contract (P2C) market. This system uses shared liquidity pools where lenders deposit assets like ETH and USDT. These pools allow for immediate borrowing, with interest rates that adjust automatically based on how much of the pool is being utilized. This model is intended for high-volume assets where instant liquidity is a priority.
The second component is the Peer-to-Peer (P2P) marketplace. This environment is designed for more customized lending agreements between individual users. It allows participants to negotiate specific terms, such as interest rates and collateral requirements, which is particularly useful for niche or volatile assets that may not be suitable for large, shared liquidity pools.
Core Mechanics: mtTokens and Stability Tools
A central part of the Mutuum Finance’s whitepaper is the mtToken mechanism. When a user supplies assets to a liquidity pool, the protocol issues mtTokens as a digital receipt. These tokens are yield-bearing, meaning they are designed to increase in value relative to the underlying deposited asset as interest is repaid by borrowers. This creates a compounding effect for the lender, which is tracked directly on the blockchain.
To maintain safety, Mutuum Finance is being designed with several risk management tools. Borrowing is intended to follow an over-collateralized model, meaning users must supply collateral worth more than the amount they borrow to help protect lenders. The protocol also plans to apply loan-to-value (LTV) limits, which set how much can be borrowed against each type of collateral.
In addition, an automated liquidator bot is designed to monitor the health factor of active loans in real time. If a position falls below required safety levels due to price changes, the system is intended to handle liquidation in an orderly way to help maintain overall protocol stability.
Roadmap Milestones: Protocol Launch and Future Plans
The recent activation of the V1 protocol on the Sepolia testnet is a key milestone for this next crypto entry. This version includes the initial liquidity pools, the mtToken issuance mechanism, and the debt-tracking infrastructure.
The testnet phase allows the development team to monitor performance and identify any potential logic issues in a simulated environment before the final deployment. Looking ahead, the Mutuum Finance roadmap includes several expansion goals:
Native Stablecoin: The team plans to develop an over-collateralized stablecoin pegged to the US Dollar. This asset will be backed by interest-generating collateral within the protocol to provide more predictable borrowing conditions.
Layer-2 (L2) Integration: To improve scalability and reduce transaction costs, Mutuum Finance intends to expand to Layer-2 networks. This is expected to lower gas fees and increase the speed of collateral updates and liquidations.
Oracle Integration: The protocol plans to utilize decentralized oracles, such as Chainlink, to ensure accurate and real-time price data for its automated risk management systems.
Progress and MUTM Distribution
The development of the protocol is being supported by a structured token distribution that began in early 2025. The native MUTM token serves as the utility asset for the platform, with a fixed total supply of 4 billion tokens. According to the project’s allocation plan, 45.5% (1.82 billion tokens) is dedicated to the presale stages to ensure broad community ownership.
Currently, the project is in Phase 7 of its presale. The token price is set at $0.04, reflecting a 300% surge from its initial Phase 1 price of $0.01. Reports indicate that the project has raised over $20.4 million and has surpassed 19,000 individual holders. This progression is moving toward a finalized launch valuation of $0.06.
To simplify participation, the platform supports both cryptocurrency transfers and direct card payments. The project also features a 24-hour leaderboard that awards $500 in tokens to the top daily contributor as a way to maintain community engagement during the build phase. As the V1 protocol undergoes testing, Mutuum Finance is transitioning from its foundational development toward its goal of becoming an established DeFi crypto platform in the 2026 market.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
J. Weir
[email protected]
