DUBAI, United Arab Emirates, Jan. 14, 2026 (GLOBE NEWSWIRE) — Mutuum Finance (MUTM), a new crypto project in the decentralized finance sector, has continued to report progress on development and participation ahead of its V1 protocol launch. The project is building a lending and borrowing system designed to operate on-chain, with a dual market structure and collateral mechanisms. The team has also completed third-party security assessments and is preparing for testnet activity followed by mainnet release.
Building a Dual Lending Market Protocol
Mutuum Finance aims to establish a DeFi lending environment in which users can lend and borrow through two distinct market models. The first is a pooled lending market, and the second is a direct matching market between users.
The pooled market functions as a Peer to Contract system. Users supply assets into liquidity pools and receive mtTokens that represent their deposit position. These mtTokens accrue yield based on borrowing activity and pool utilization. For example, a user who deposits 1,000 USDC into the pool would receive mtUSDC. If borrowing demand increases, interest paid by borrowers increases the return for mtUSDC holders.
The second market is a Peer to Peer model. In this system, lenders and borrowers interact directly, with borrowers posting collateral to secure loans. Loan to Value (LTV) ratios determine how much a borrower can draw against the posted collateral. If the collateral value decreases below the required threshold, liquidation mechanisms are triggered. During liquidation, a portion of debt is repaid and collateral is transferred at a discount to liquidators. This design aims to protect solvency within the system while offering structured borrowing options for users.
Together, these two markets are intended to provide flexibility for different types of users, ranging from passive lenders to borrowers seeking tailored credit terms. This system places Mutuum Finance in the category of new DeFi crypto projects focusing on infrastructure rather than speculative tokens.
mtTokens and Protocol-Level Yield
mtTokens serve as a key component of the protocol’s system. They act as deposit receipts for assets supplied into the lending pools. Their value increases as interest paid by borrowers is distributed across the pools. This design follows the structure used by established DeFi lending platforms, where yield is tied to real borrowing activity rather than emissions alone.
In addition to interest rates, Mutuum Finance plans to introduce a buy-and-distribute mechanism. Under this system, a portion of protocol revenue will be used to purchase MUTM tokens on the market, which are then distributed to users who stake their mtTokens. This creates a link between protocol revenue and token distribution.
Stablecoin and Layer-2 Expansion Plans
The roadmap published by the development team outlines further infrastructure features scheduled for later stages. One of these features is stablecoin integration. Stablecoins are expected to serve as liquidity assets for borrowing and lending activities, allowing users to borrow in assets with minimal price volatility. This is a common feature in next crypto lending projects focused on usage rather than speculation.
Mutuum Finance is also preparing for Layer-2 expansion after V1. Layer-2 networks offer lower transaction costs and higher throughput compared to Ethereum mainnet, making them suitable for borrowing and liquidation transactions that may require more frequent interaction. The development team has stated that migration to Layer-2 networks will depend on market activity and technical readiness after launch.
The protocol has undergone external security assessment. Mutuum Finance completed an audit with Halborn Security, a noted firm that has reviewed smart contracts for major DeFi platforms. The project also received a 90 out of 100 Token Scan score from CertiK. In addition, a $50,000 bug bounty program has been launched to identify potential vulnerabilities prior to full deployment.
Security evaluation has become an important requirement for lending platforms due to the need to handle collateral, price feeds and liquidation logic reliably. Without these layers, lending protocols are vulnerable to cascading liquidations and asset mispricing during market volatility.
Presale Distribution and Participation Metrics
Mutuum Finance is currently conducting a presale as part of its initial token distribution model. The presale is split into multiple phases, each with fixed token prices and allocations. The current token price is $0.04, while the confirmed listing price has been set at $0.06. The presale began in early 2025 and has progressed through several pricing tiers.
The project has reported that more than $19.7 million has been raised so far. The investor base has grown to over 18,800 holders, indicating broad early participation for a project still in its pre-launch stage. According to the published token supply model, the total supply for MUTM will be 4 billion tokens, with 45.5 percent allocated to the presale. This equals approximately 1.82 billion tokens. Phase 7 is currently active with a defined allocation structure.
According to the project’s official communication, V1 Protocol will first deploy on Ethereum’s Sepolia testnet. Following successful testing, the mainnet release is scheduled for public access. V1 will activate the core functionality for borrowing, lending, collateral rules, liquidation logic and mtToken yield flow.
As V1 approaches, the project continues to present itself as part of the next crypto category tied to DeFi infrastructure rather than speculative trading cycles. Whether market activity aligns with these plans will depend on adoption and usage once V1 is live.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
