DUBAI, United Arab Emirates, Feb. 21, 2026 (GLOBE NEWSWIRE) — The decentralized finance (DeFi) sector is currently observing a transition in capital flows as market participants evaluate the long-term viability of high-valuation altcoins. While established assets often command significant market attention, their growth trajectories sometimes reach a point of consolidation.
In this environment, emerging protocols focused on technical utility are becoming a point of interest for those tracking the next crypto developments. Mutuum Finance (MUTM) has recently marked a milestone in this shift by moving its core infrastructure from private development to a public testing phase, signaling a focus on technical transparency and architectural validation.
Mutuum Finance (MUTM) Technical Foundation
Mutuum Finance is a decentralized liquidity protocol designed to automate liquidity markets using smart contracts rather than centralized intermediaries. At the center of its architecture is a dual-market lending system intended to provide flexibility for various types of participants. This structure consists of two developing distinct models: Peer-to-Contract (P2C) and Peer-to-Peer (P2P).
The P2C model aims to utilize shared liquidity pools, where lenders could deposit assets like ETH or USDT to provide immediate liquidity. In this setup, interest rates adjust automatically based on pool utilization. When demand for borrowing rises, rates increase to attract more deposits; when liquidity is high, rates decrease to encourage borrowing.
The P2P model, conversely, is designed for individualized agreements. This would allow participants to negotiate specific terms, such as interest rates and duration, directly with one another. This model is particularly useful for assets that may not be suitable for large, shared pools due to volatility or niche demand.
mtTokens and Protocol Utility
A key developing feature of the Mutuum Finance ecosystem is the mtToken system. When users provide liquidity to the P2C pools, the protocol issues mtTokens as a digital receipt of the deposit. These tokens are designed to be interest-bearing assets.
As borrowers repay their loans with interest, the value of mtTokens increases relative to the underlying deposited asset. This allows suppliers to track their earned yield directly through the token itself, simplifying the process of yield accrual without requiring manual intervention.
Beyond the core lending engine, the project has detailed plans to introduce a native, over-collateralized stablecoin. This asset is intended to provide a stable medium of exchange within the ecosystem, backed by the interest flows and collateral held within the protocol.
Additionally, the official roadmap outlines plans for Layer-2 (L2) integration. By expanding to L2 networks, the protocol aims to offer faster settlement times and lower transaction fees, which are essential for efficient collateral management.
Protocol Launch and Security Framework
The activation of the V1 protocol on the Sepolia testnet represents a major transition for the project. This release allows the public to interact with the core lending and borrowing logic in a controlled environment.
Participants can test the issuance of mtTokens, observe the automated liquidator bot, and monitor how interest rates respond to changes in pool liquidity. This phase is intended to gather performance data and ensure system stability before a full mainnet deployment.
Security has been a central focus during the development of these features. Mutuum Finance has completed a manual code audit with Halborn Security, a firm known for evaluating complex blockchain architectures. Furthermore, the protocol holds a 90/100 trust score from CertiK, reflecting ongoing monitoring of the token’s configuration.
To further safeguard the system, the project has introduced a $50,000 bug bounty program, encouraging independent researchers to review the code and report any potential vulnerabilities before the next crypto development stages.
Presale Progress and Tokenomics
The distribution of the MUTM token is being managed through a structured, multi-phase presale that began in early 2025. Since its start, the token has seen a price increase of 300% as it moved through various allocation stages.
The project has reported raising over $20.6 million in funding, supported by a holder base of more than 19,000 individuals. This broad distribution suggests a decentralized start for the protocol’s governance and utility.
Currently, the presale is in Phase 7, with the token priced at $0.04. The total supply of MUTM is fixed at 4 billion tokens, with 45.5% (1.82 billion tokens) allocated for the community presale. To date, approximately 850 million tokens have been sold. The project has stated that the final launch price for the token will be $0.06.
To support accessibility, Mutuum Finance allows for both cryptocurrency payments and direct card purchases, facilitating participation for a wide range of users as the project prepares for its broader entry into the DeFi crypto market.
Looking Ahead to Roadmap Phase 2
As the V1 testnet phase proceeds, the focus of the development team is moving toward the requirements for the full mainnet debut. This transition will mark the beginning of “Roadmap Phase 2,” which focuses on scaling the protocol’s reach and integrating the planned L2 solutions.
By moving through these technical milestones in a structured manner, Mutuum Finance is positioning itself as a utility-focused project in an increasingly crowded altcoin ecosystem. The shift toward public validation through the Sepolia testnet is a key step in demonstrating the protocol’s readiness for wider adoption.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
