DUBAI, United Arab Emirates, Dec. 10, 2025 (GLOBE NEWSWIRE) — Mutuum Finance (MUTM), a new crypto project developing a decentralized lending protocol, has confirmed that several core operational components are now finalized as the team approaches important milestones planned for Q4 2025. The update highlights progress across smart contract refinement, internal testing, security review and user-focused infrastructure. It also provides new insight into how the protocol is preparing for its V1 testnet release.
Mutuum Finance and Its Dual Lending Model
Mutuum Finance is building a lending system based on two connected markets. The first market allows users to supply assets such as ETH or USDT. When they do, they receive mtTokens. mtTokens grow in value as borrowers repay interest. The goal is to tie lender yield to actual protocol activity rather than fixed or inflationary rewards.
The second market is designed for peer-based borrowing interactions. Borrowers open positions with variable interest rates that shift with the available liquidity in the pool. When liquidity is high, borrowing costs remain lower. When liquidity tightens, interest rates rise. Loan-to-value rules guide how much collateral a borrower must maintain. If collateral becomes insufficient, a portion of the position may be liquidated. Liquidators repay part of the loan balance and receive collateral at a discount. The system aims to balance user flexibility with safeguards that keep the lending pool solvent during volatile market periods.
Mutuum Finance states that both markets will be active in the upcoming V1 testnet, allowing users to view how the platform manages collateral, interest and repayment cycles under real conditions.
mtTokens and Their Role in Yield Generation
The team has emphasized the role of mtTokens as a structural element of the protocol. mtTokens increase in value when interest flows into the lending pool. A user who supplies ETH or USDT will receive mtTokens that reflect the performance of the pool as borrowers make repayments. The model is intended to offer predictable yield behavior without inflation-based rewards that may harm long-term sustainability.
Mutuum Finance plans to integrate mtTokens into additional features after the V1 launch. These planned features include expanded staking tools and automated safety functions. The team views mtTokens as a foundation for future protocol activity.
Presale Progress and Community Participation
Mutuum Finance launched its presale in early 2025 with a starting token price of $0.01. The token now trades at $0.035. According to the team, the price reflects the project’s current development stage and the interest shown by early participants. Funding has now exceeded $19.2M, and the project has grown to more than 18,400 holders.
The presale allocation totals 1.82 billion tokens out of the 4 billion MUTM supply. This equals 45.5% of all tokens. More than 810 million tokens have been purchased so far. The team notes that interest has remained steady due to development transparency, regular progress updates and the upcoming testnet schedule.
Mutuum Finance also uses a 24-hour leaderboard that rewards the top contributor with 500 MUTM each day. The leaderboard has become one of the main community-engagement tools. It encourages daily activity and helps highlight the project in various regions. In addition, the project supports card payments, which makes onboarding simpler for new users who prefer direct payment options.
Progress Through Phase 2 of the Roadmap
Mutuum Finance reports that smart contract refinement has been a central part of Phase 2. Contract behavior has been adjusted to ensure predictable interest calculation and repayment handling. The liquidation logic has been tested under different simulated market conditions. Internal testing has focused on collateral thresholds, borrowing limits and system behavior during rapid price swings.
The interface has undergone improvements for clarity and navigation. These changes prepare users for the upcoming V1 testnet, where they will be able to view supply, borrowing and liquidation activity in real time. The team has also implemented analytics and monitoring tools that will support visibility during testing.
Mutuum Finance states that Phase 2 is intended to finalize the components needed for V1 rather than introduce large new features. Each module is being tuned to operate consistently when paired with the protocol’s interest engines and lending logic.
Halborn Security Review and Overall Safety Measures
The project continues to work with Halborn Security, which is reviewing the borrowing and liquidation contracts. Halborn’s assessment includes liquidation thresholds, collateral requirements, repayment functions and system logic under different liquidity conditions. This review supports readiness for public testing.
Mutuum Finance also completed a CertiK audit, earning a 90 out of 100 Token Scan score. The audit included checks for contract vulnerabilities, risk exposure and behavior under variable market scenarios. The team is running a $50,000 bug bounty to identify issues that may not be visible through automated testing. These layers of review are intended to strengthen confidence before users begin interacting with the protocol during V1.
Stablecoin Development and Layer-2 Outlook
Mutuum Finance is preparing a USD-pegged stablecoin for use inside the protocol. The stablecoin will be backed by borrower interest. It is expected to support lending efficiency by offering predictable value for collateral and borrow positions. The team views the stablecoin as an essential part of the lending engine once the protocol moves beyond the testnet stage.
The project also plans to expand to multiple layer-2 networks. L2 deployment will reduce transaction costs and increase processing speed. These improvements are important for a lending platform due to the frequent updates required for collateral levels, interest rates and liquidation events. The team believes that layer-2 access will help Mutuum Finance scale as user activity increases.
Mutuum Finance continues to progress through its roadmap while refining core features needed for lending operations. The combination of rising funding, strong community participation, smart contract improvements and ongoing security review has positioned the project as an emerging next crypto candidate within the DeFi market. As the V1 testnet approaches, the team states that further updates will be provided to prepare users for the upcoming shift from internal testing to public evaluation.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
