DUBAI, United Arab Emirates, Feb. 17, 2026 (GLOBE NEWSWIRE) — The decentralized finance (DeFi) sector is moving toward a standard of technical verification and functional delivery in 2026. Mutuum Finance (MUTM), a non-custodial lending and borrowing protocol, has announced the activation of its V1 protocol on the Sepolia testnet.
This development marks a transition from conceptual design to public testing of its core smart contract infrastructure. The project is building an Ethereum-based ecosystem designed to automate credit markets using autonomous code rather than traditional intermediaries.
Architecture of Mutuum Finance (MUTM)
Mutuum Finance (MUTM) is developing a dual-market lending system to provide flexibility for various types of market participants. This structure includes two distinct models for managing digital asset liquidity. The first is the Peer-to-Contract (P2C) model, which utilizes shared liquidity pools. In this system, lenders deposit assets like ETH or USDT into a collective reserve, and borrowers access these funds based on interest rates that adjust automatically according to pool utilization.
The second model is a Peer-to-Peer (P2P) framework. This market is intended for more individualized lending agreements, where participants can negotiate specific terms directly with one another.
This model is particularly useful for assets with higher volatility that may not be suitable for large, shared pools. By offering both systems, Mutuum Finance aims to create a unified platform that addresses a wide range of risk management and liquidity needs.
Technical Milestones: V1 Protocol and Security
The activation of the V1 protocol on the Sepolia testnet allows the community to interact with the platform’s core features in a safe environment. The testnet release includes the functional liquidity pools, the mtToken system, and the automated liquidator bot. These components represent the technical foundation of the protocol, enabling users to simulate the process of supplying collateral and managing debt positions.
Security has been a central focus during the development of these features. Mutuum Finance has successfully completed a manual code audit with Halborn Security, a firm known for its work with major blockchain protocols.
This audit reviewed the lending and borrowing smart contracts to identify and resolve potential vulnerabilities before the mainnet deployment. Additionally, the MUTM token holds a 90/100 trust score from CertiK, which evaluates token configuration and transparency. To further safeguard the system, the project has also introduced a $50,000 bug bounty program to encourage continuous independent review.
Core Utility
A key element of the Mutuum Finance’s whitepaper is the mtToken. When users provide liquidity to the P2C pools, they receive mtTokens as a digital receipt of their deposit. These tokens are designed to be interest-bearing assets; as borrowers repay their loans, the value of mtTokens increases relative to the underlying deposited asset. This allows suppliers to track their earned yield directly through the token itself.
The protocol’s roadmap also incorporates a buy-and-distribute mechanic to align the interests of the platform with its native token, MUTM. A portion of the fees generated by lending activity is used by the protocol to purchase MUTM tokens on the open market.
These tokens are then redistributed to users who participate in the protocol’s safety module by staking their mtTokens. This design links the utility of the token directly to the actual usage and revenue generation of the lending platform.
Presale Progress and Tokenomics
The distribution of the MUTM token is being managed through a structured, multi-phase presale that has seen significant progress since its start in early 2025. The project has already surpassed $20.5 million in total funds raised, supported by a growing community of over 19,000 individual holders. Out of the total supply of 4 billion tokens, the team has allocated 45.5%, or 1.82 billion tokens, specifically for the presale, with more than 845 million already sold to early participants.
Currently, the project is moving through Phase 7, where the token is priced at $0.04. This current value represents a 300% increase from the initial starting price of $0.01, showing steady upward momentum. With a confirmed final launch price of $0.06, investors entering at the current stage are securing their position before the token hits its full market valuation.
Mutuum Finance has integrated flexible payment options, including direct card transactions, to facilitate easier participation for a wider audience. As the V1 testnet phase proceeds, the project is focusing on gathering data to finalize the requirements for its full mainnet debut.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
