DUBAI, United Arab Emirates, March 14, 2026 (GLOBE NEWSWIRE) — Mutuum Finance (MUTM), an Ethereum-based lending platform, has recently confirmed that it is moving into Phase 3 of its development roadmap. This milestone comes as the project reports a successful funding total of over $20.8 million, collected from a global base of 19,000 individual investors since the first quarter of 2025. By reaching these financial and technical targets, the project is positioning itself as a key player in the effort to create a more transparent and automated liquidity market.
The Mutuum Finance Roadmap
The Mutuum Finance roadmap is designed to create a “full-stack” lending environment that serves different types of users. At its core, the project is building a non-custodial engine that allows people to borrow and lend digital assets without a middleman.
Phase overall is specifically focused on perfecting two distinct lending models: Peer-to-Contract (P2C) and Peer-to-Peer (P2P). The P2C model uses shared liquidity pools to provide instant loans for high-volume assets like ETH or USDT. Meanwhile, the P2P marketplace allows users to negotiate their own custom loan terms for more specialized or volatile assets.
Beyond these lending engines, the roadmap includes the development of a native, over-collateralized stablecoin. This asset will be minted directly against the interest-bearing tokens already held within the protocol, allowing users to unlock spending power without selling their original holdings.
To ensure the protocol remains sustainable, the team is also working on a buy-and-distribute mechanism. This system uses a portion of platform fees to buy MUTM tokens from the open market and redistribute them to users who help secure the network.
V1 Protocol and Recent Updates
While many of the roadmap plans look toward the future, Mutuum Finance has already delivered its functional foundation through the V1 Protocol. Currently live on the Sepolia testnet, the V1 protocol has already attracted a Total Value Locked (TVL) of over $225 million.
This environment allows the 19,000 investors and new participants to test every part of the system in a risk-free setting. The high TVL on the testnet has provided the development team with valuable data to ensure the platform remains stable during periods of high traffic or market volatility.
Recent updates to the V1 protocol have focused on improving the user experience and safety. One major addition is the “One-Click” Safe-Mode Borrowing feature. This tool allows users to select a risk profile—Safe, Balanced, or Aggressive—and the protocol automatically calculates the best Loan-to-Value (LTV) ratio to prevent accidental liquidations.
Additionally, the team recently finished building an automated notification system. Users can now choose to receive alerts via Email, Telegram, or Discord if their loan’s Health Factor changes. This ensures that borrowers can react quickly to market moves and protect their collateral.
How Borrowing and Lending Works within the V1 Protocol
The V1 protocol operates through a series of automated smart contracts that manage the flow of capital. For lenders, the process begins by depositing an asset into a liquidity pool. In return, the lender receives mtTokens.
These are yield-bearing receipts that represent their share of the pool. As borrowers pay interest back into the system, the value of these mtTokens grows automatically. This means lenders do not need to manually claim their rewards; they simply hold the tokens and watch their balance increase over time.
For borrowers, the system requires collateral to secure a loan. Once an asset is deposited, the protocol issues Debt Tokens to track the exact amount owed. To keep the system safe, the protocol enforces a strict LTV ratio. For example, if a user provides $1,000 in collateral and the LTV is set to 75%, they can borrow up to $750. If the value of the collateral drops too far, the automated notification system alerts the user to add more funds or repay part of the loan to maintain a healthy position.
As Mutuum Finance moves through Phase 3, the project is demonstrating a clear path from a successful funding round to a functional technical product. With over $20.8 million raised and a $225 million TVL testnet, the protocol is proving its ability to scale. The combination of advanced safety features like “One-Click” borrowing and real-time alerts suggests a focus on professional-grade security.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
