DUBAI, United Arab Emirates, Jan. 31, 2026 (GLOBE NEWSWIRE) —
The decentralized finance (DeFi) sector is seeing a shift toward more technical milestones as we move through 2026. Mutuum Finance (MUTM), a protocol focusing on non-custodial lending and borrowing, has recently reached a major development phase. The activation of its V1 protocol marks a transition from conceptual design to functional testing. This update provides a closer look at the tools and systems that will define the project’s ecosystem once it moves to the mainnet.
Core Infrastructure and the Dual Lending Model
Mutuum Finance is built on the Ethereum network and aims to provide a structured environment for on-chain lending and borrowing. The protocol’s primary innovation is its dual lending market, which addresses different market needs.
Peer-to-Contract (P2C): This model uses shared liquidity pools. Lenders deposit assets like ETH or USDT into these pools, and smart contracts manage the allocation to borrowers. This ensures that liquidity is always available and that interest rates adjust automatically based on how much of the pool is being used.
Peer-to-Peer (P2P): For users with specific needs, the P2P marketplace allows for direct agreements. This is particularly useful for niche or volatile assets that may not fit into larger liquidity pools. Lenders and borrowers can negotiate their own terms, including interest rates and collateral requirements.
mtTokens and Debt Management
The V1 activation on the Sepolia testnet has revealed the mechanics behind user positions. When a user supplies assets to the protocol, they receive mtTokens (such as mtETH or mtUSDT). These tokens act as yield-bearing receipts.
Unlike traditional systems that send periodic payouts, mtTokens increase in value relative to the underlying asset as interest is repaid by borrowers. This creates a compounding effect for the supplier.
On the other side, borrowers receive Debt Tokens, which represent their outstanding obligations. To maintain the safety of the protocol, Mutuum Finance uses an automated Liquidator Bot. This bot monitors the health of all loans and can trigger liquidations if a borrower’s collateral value drops below a certain safety threshold, protecting the liquidity pools from insolvency.
Roadmap Expansion
Looking beyond the initial V1 release, Mutuum Finance has outlined plans for long-term scalability. A central part of this strategy is the development of a native, over-collateralized stablecoin. This asset will be pegged to the US Dollar and backed by the interest-generating collateral within the protocol. This stablecoin is intended to provide more predictable borrowing conditions and reduce exposure to market volatility.
The team also plans to integrate with Layer-2 (L2) networks. By moving transactions off the main Ethereum layer, the protocol can offer faster settlement times and significantly lower gas fees. This is a critical step for a DeFi crypto project that requires frequent updates for collateral checks and interest rate adjustments.
MUTM Distribution and Presale Progress
The development of Mutuum Finance has been supported by a structured token distribution that began in early 2025. The MUTM token is the utility asset for the platform. The Mutuum Finance (MUTM) presale has reached a major milestone by raising over $20.1 million from a growing community of more than 19,900 holders.
This steady growth is reflected in the token’s price, which started at $0.01 and has climbed 300% to its current Phase 7 level of $0.04. These numbers show strong market interest as the project prepares for its official launch at $0.06. By reaching these funding and holder targets, the protocol is moving closer to its goal of providing a decentralized ecosystem for lending and borrowing.
The total supply of MUTM is fixed at 4 billion tokens, with 45.5% (1.82 billion) dedicated to the presale. Reports show that over 835 million tokens have already been sold. This distribution phase allows early participants to secure a position before the confirmed launch price of $0.06.
By combining third-party security audits with a functional testnet and a clear path toward Layer-2 expansion, Mutuum Finance is positioning itself as a notable next crypto entry in the lending space. While the project is still in its pre-launch stages, the activation of V1 provides a clear signal that the development is moving from theoretical design into operational reality.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
