DUBAI, United Arab Emirates, March 15, 2026 (GLOBE NEWSWIRE) — The decentralized finance (DeFi) sector is currently moving into a high-execution phase, where the focus has shifted from theoretical whitepapers to functional code. Leading this transition is Mutuum Finance (MUTM), an Ethereum-based non-custodial lending protocol. The project has recently officially entered Phase 3 of its development roadmap, marking a period of intense technical refinement and community expansion.
With over $20.8 million raised and a growing investor base of more than 19,000 holders, the project is demonstrating that there is a significant market demand for transparent, automated liquidity markets that operate without traditional bank intermediaries.
V1 Protocol
The most significant achievement in this current phase is the activation and performance of the V1 Protocol on the Sepolia testnet. This environment serves as a professional-grade testing ground where the protocol’s core lending and borrowing logic are open for public interaction. To date, the testnet has recorded an impressive Total Value Locked (TVL) of over $225 million.
This high volume of simulated capital allows the development team to stress-test the system’s ability to handle large-scale liquidity, interest rate adjustments, and automated liquidations before the transition to the Ethereum mainnet. The V1 protocol introduces several key features that are currently being refined:
mtToken System: Users who supply assets like ETH, WBTC, LINK, or USDT receive mtTokens. These are yield-bearing receipts that automatically increase in value relative to the original deposit as interest is collected from borrowers.
Automated Notifications: A recent major update includes the integration of a position alert system. Users can now receive real-time notifications via Email, Telegram, or Discord if their loan’s Health Factor changes or drops toward a liquidation threshold.
One-Click Safe-Mode: This feature simplifies the borrowing process by allowing users to select a risk profile—Safe, Balanced, or Aggressive. The protocol then automatically sets the safest Loan-to-Value (LTV) ratio based on the current market volatility of the collateral.
Roadmap Phase 3
As Mutuum Finance moves through Phase 3, the roadmap outlines several strategic additions designed to create a self-sustaining financial ecosystem. While the V1 protocol handles the core mechanics, the long-term vision involves building tools that increase the utility and stability of the MUTM token, which is currently priced at $0.04.
The team is developing a native, over-collateralized stablecoin that will be minted directly against the collateral held within the protocol. This asset is designed to be a decentralized medium of exchange, allowing users to unlock liquidity without selling their interest-bearing mtTokens. Every stablecoin in circulation will be backed by on-chain assets, ensuring it maintains its peg through transparent, smart-contract-governed mechanisms rather than centralized bank accounts.
Buy-and-Distribute Mechanism
To support the token’s economic health, Mutuum Finance is implementing a buy-and-distribute mechanism. Under this model, a portion of the transaction fees generated by every loan and deposit on the platform is used to purchase MUTM tokens from the open market. These tokens are then redistributed to users who stake their assets in the Safety Module.
This module acts as an emergency fund that provides a financial backstop for the protocol during periods of extreme market stress. By rewarding those who secure the network with protocol revenue, Mutuum Finance aims to align the interests of long-term holders with the platform’s actual usage.
Security Audits and Final Refinement
Security remains the primary pillar of the Mutuum Finance development strategy. The protocol has already completed a rigorous manual code audit by Halborn Security, a firm known for reviewing some of the most complex architectures in the DeFi space. The audit focused on the safety of the lending pools, the accuracy of the interest rate curves, and the reliability of the liquidation bots.
In addition to the Halborn review, the MUTM token smart contract has earned a high 90/100 safety score from CertiK. These layered security measures are essential for building trust among the 19,000 investors and preparing the protocol for institutional-grade capital.
Mutuum Finance’s progress through Phase 3 highlights a disciplined approach to building decentralized infrastructure. By combining a functional $225 million TVL testnet with automated safety tools like position alerts and Safe-Mode borrowing, the project is moving beyond the conceptual stage.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
