DUBAI, United Arab Emirates, Jan. 25, 2026 (GLOBE NEWSWIRE) — Mutuum Finance (MUTM), a new crypto project developing a decentralized lending and borrowing system, has shared updated details regarding its V1 protocol rollout. The update outlines the core components that will be introduced in the first release and confirms that the development schedule remains aligned with the current roadmap. Analysts covering the DeFi crypto sector noted that the protocol continues to move through its planned build cycle as more technical details appear.
Protocol Architecture and Lending Markets
Mutuum Finance is building a dual-lending model designed to support different borrowing and lending profiles. The protocol includes two markets. The first is a pooled lending market for users who want to supply assets and earn yield. Users receive mtTokens that show the position and the earned APY. Yield increases as borrowing activity increases. Borrowers can draw capital from the pool by posting collateral at loan-to-value ratios. A borrower might request liquidity at a 60-75% LTV against their assets. Liquidation systems are present to protect lenders during price swings.
The second market is a peer-to-peer matching market. Users can open collateralized borrowing positions with direct matching rather than drawing from the shared liquidity pool. Collateral rules and liquidation logic are the same as in pooled lending. The team stated that both markets will run in parallel and share the same risk engine. This structure tries to support different borrowing strategies without forcing users into one model.
A key accounting tool for the protocol is the mtToken. When users supply assets to the pooled market, the system issues mtTokens that show the lender’s position in the pool. The token also reflects yield growth during the lending period. According to the documentation, mtTokens may also be staked in the safety module to earn MUTM purchased from the open market. A portion of protocol revenue funds those purchases.
Stablecoin and Security Framework
Mutuum Finance is also working on an overcollateralized stablecoin system. Users will be able to mint a stablecoin without selling their original assets. Stablecoin borrowers tend to remain in lending ecosystems longer because they can access liquidity for trading or portfolio management while retaining asset exposure. The team stated that stablecoin functionality is tied to the same collateral and liquidation engine used for borrowing activities.
Security remains a central part of the development update. Mutuum Finance completed an independent audit with Halborn Security. The protocol also holds a 90 out of 100 token scan score from CertiK.
In addition, a $50,000 bug bounty program is in effect to identify vulnerabilities before the system activates borrowing at scale. The team stated that liquidation systems and collateral accounting are areas that require strict validation because they govern how the protocol handles risk during volatile market periods.
V1 Launch Status and MUTM Distribution
According to the project’s official X account, the V1 protocol is scheduled for the Sepolia testnet in Q1 2026. The testnet release will include collateral rules, liquidation logic, pooled borrowing and lending, direct matching and risk systems. Supported assets at launch will include ETH and USDT. After testnet validation, the project intends to move toward mainnet preparation.
Beyond protocol development, Mutuum Finance continues to run its structured token presale. The token sells at $0.04 in preslae Phase 7. The presale began in early 2025 at $0.01. Since then, the token has appreciated by 300% for the earliest participants. The project has raised $19.9M and onboarded 18,900 holders. A total of 830M tokens have been sold so far.
From the 4B supply, 45.5% or 1.82B tokens are allocated for early access. The project includes a daily 24-hour leaderboard that rewards the day’s highest contributor with $500 in MUTM. Card payment access is also available.
The development update shows that Mutuum Finance is moving through its roadmap with focus on lending mechanics, stablecoin design, yield accounting and security. With V1 approaching testnet release, more technical components are expected to be disclosed during the next crypto stage of development.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
