DUBAI, United Arab Emirates, Jan. 01, 2026 (GLOBE NEWSWIRE) — Mutuum Finance (MUTM), a new crypto project focused on decentralized lending and borrowing, has confirmed that its core protocol features are finalized as the team prepares for the upcoming V1 launch. The update marks a transition from development into deployment, positioning Mutuum Finance among DeFi crypto projects moving closer to live user testing.
The protocol is designed to operate on Ethereum and aims to provide structured lending markets that function across different market conditions. According to information shared by the team, V1 will initially be deployed as a beta on the Sepolia testnet.
Overview of What Mutuum Finance is Building
Mutuum Finance is developing a decentralized lending platform with a dual market structure. The protocol allows users to supply digital assets to earn yield, while borrowers can access liquidity by posting collateral.
The system is built to manage liquidity through interest rate adjustments. When borrowing demand is low and liquidity is high, interest rates remain lower to encourage borrowing. When liquidity becomes scarce, rates rise to incentivize repayments and attract new suppliers. This mechanism is intended to keep capital active while maintaining balance within lending pools.
Borrowers must maintain overcollateralized positions. Each asset supported by the protocol has defined Loan to Value parameters that limit how much can be borrowed relative to collateral value. If market prices move against a borrower and the position falls below required thresholds, liquidation mechanisms activate to protect the protocol and lenders.
mtTokens and Protocol Accounting
When users supply assets to Mutuum Finance, they receive mtTokens in return. These tokens represent a claim on the underlying supplied assets and accrue value over time as borrowers repay interest. Instead of receiving interest payments directly, users see their mtToken balances increase in value.
This approach allows interest earnings to compound automatically and simplifies accounting for lenders. mtTokens are transferable and remain linked to the health of the lending pools they represent.
The protocol also includes a buy-and-distribute mechanism. MUTM purchased on the open market is redistributed to users who stake mtTokens in the safety module. This system connects protocol activity with token distribution without relying on external incentives.
Stablecoin and Layer-2 Plans
Stablecoins are expected to play a central role in Mutuum Finance’s lending markets. By supporting stable assets, the protocol aims to maintain consistent borrowing and lending activity during periods of volatility in broader crypto prices.
The roadmap also outlines plans for Layer-2 compatibility. Lower transaction fees and faster confirmation times are seen as important factors for lending protocols, where users may interact frequently with contracts. Layer-2 support is intended to improve accessibility and reduce costs for users over time.
Accurate pricing is a key requirement for lending systems. Mutuum Finance plans to rely on decentralized oracle infrastructure, including Chainlink data feeds, along with fallback and aggregated sources. These price feeds are used to determine collateral values, borrowing limits, and liquidation thresholds.
Security Reviews and Audits
Security preparation has been a major focus as the protocol approaches V1. Mutuum Finance has completed a security review with Halborn Security, which analyzed the lending and borrowing contracts. The codebase has been finalized and reviewed, with final updates pending publication.
In addition, MUTM has received a 90/100 score on the CertiK Token Scan. This assessment covers token configuration, transparency, and structural checks rather than protocol-level audits.
The project has also launched a $50k bug bounty program to encourage independent security researchers to identify potential vulnerabilities before the protocol is used more broadly.
Presale Status and Distribution
Mutuum Finance’s presale began in early 2025 and follows a fixed-stage pricing model. The total supply of MUTM is 4B tokens, with 45.5% allocated to the presale, equal to approximately 1.82B tokens.
As of the latest update, around 820M tokens have been sold. The token price has progressed through multiple stages, starting at $0.01 and reaching approximately $0.04 in the current phase. Each phase includes a defined token allocation and price increase.
The project has raised $19.5M and reports approximately 18,700 token holders. These figures reflect distribution progress rather than market trading activity, as the token has not yet launched on exchanges.
Position within the DeFi sector
According to official statements shared by Mutuum Finance on X, the V1 beta is scheduled for deployment on the Sepolia testnet. Initial supported assets include ETH and USDT for lending, borrowing, and collateral usage.
The beta phase is intended to allow users to interact with the protocol in a testing environment, evaluate performance, and identify any issues before a full mainnet release. Features expected in V1 include liquidity pools, mtTokens, debt tracking, and automated liquidation tools.
As a new cryptocurrency project, Mutuum Finance enters a competitive DeFi altcoin landscape that includes established lending platforms and newer entrants. Its focus on structured risk management, gradual deployment, and multiple layers of security positions it as a protocol prioritizing stability over rapid expansion.
While timelines and adoption will depend on execution and user response, the completion of core lending features marks a key milestone. With development finalized and V1 approaching, Mutuum Finance moves from a build phase into early operational testing.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
