DUBAI, United Arab Emirates, Feb. 16, 2026 (GLOBE NEWSWIRE) — Mutuum Finance (MUTM) has officially confirmed a key development milestone as its V1 protocol goes live on the Sepolia testnet. The update marks a clear transition from roadmap planning to functional delivery. While many new crypto projects remain in the conceptual stage, Mutuum Finance is now allowing users to interact with its core lending framework in a live, risk-free environment.
The activation of the V1 protocol signals measurable roadmap progress and strengthens confidence among early participants. As the project advances through its structured distribution phase, investors are closely tracking how these technical milestones align with its long-term vision of building a professional, non-custodial lending and borrowing hub.
What Is Mutuum Finance (MUTM)?
Mutuum Finance is a decentralized liquidity protocol designed to facilitate digital asset lending through smart contracts. Its primary goal is to provide a transparent environment where users can earn yield or access liquidity while retaining ownership of their assets.
The system is built to handle transactions, risk management, and interest rate adjustments through code, reducing the reliance on manual oversight. The protocol uses a dual-market structure to accommodate different user needs. This framework includes two distinct lending models:
Peer-to-Contract (P2C): This is a pool-based model where lenders deposit assets like ETH or USDT into shared liquidity reserves. Borrowers draw from these pools by providing overcollateralized assets. This system allows for instant borrowing without waiting for a direct counterparty.
Peer-to-Peer (P2P): This model is designed for more direct interactions. It allows for the lending of assets that may not fit the standard pool parameters, providing flexibility for varied risk profiles and specialized borrowing terms.
Key Technical Features
A central component of the Mutuum Finance ecosystem is the mtToken system. When users supply liquidity to the pools, they receive mtTokens in return. These function as a digital receipt of the deposit but also act as interest-bearing assets. Instead of requiring users to manually claim rewards, the protocol is designed to increase the value of mtTokens relative to the underlying deposited asset as borrowers repay their loans with interest.
To maintain the safety of the protocol, Mutuum Finance has implemented several automated risk controls. These include:
The protocol includes an Automated Liquidator Bot that runs continuously to protect liquidity pools. If a borrower’s collateral drops below a defined safety threshold, the system can trigger a liquidation to help maintain solvency. Each supported asset is governed by clear Loan-to-Value (LTV) limits, restricting how much can be borrowed relative to the collateral provided in order to manage volatility. In addition, the protocol plans to integrate decentralized oracle infrastructure to supply accurate, real-time pricing data that supports fair valuations and reliable liquidation triggers.
Roadmap Progress: V1 Launch and Future Plans
The activation of the V1 protocol on the Sepolia testnet represents the start of Roadmap Phase 2 for Mutuum Finance. This version allows users to interact with the core lending engine, test the issuance of mtTokens, and observe the liquidation logic in a risk-free environment.
According to the development team, this phase is essential for gathering data and fine-tuning performance before the mainnet deployment. Looking ahead, the project has outlined several long-term roadmap goals for the remainder of 2026. These include:
- Native Stablecoin: Plans are in place to launch an overcollateralized stablecoin backed by the protocol’s interest flows.
- Layer-2 Expansion: To improve scalability and reduce transaction costs, Mutuum Finance intends to integrate with Ethereum Layer-2 networks. This is expected to make frequent tasks like depositing and repaying loans more accessible for smaller users.
- Buy-and-Distribute Model: The protocol design includes a mechanism where a portion of generated fees is used to purchase MUTM tokens on the open market, which are then redistributed to those participating in the safety module.
Security Audits and Presale Details
Security remains a central priority as Mutuum Finance prepares for broader adoption. The protocol has completed a manual smart contract audit with Halborn Security, a firm known for its work in DeFi risk assessment.
The native MUTM token is being distributed through a structured, multi-phase presale that began in 2025. As of February 2026, the project reports over $20.5 million raised and a community exceeding 19,000 individual holders. The total supply is fixed at 4 billion tokens, with 45.5% (1.82 billion) allocated to the presale. More than 840 million tokens have reportedly been sold so far.
The token is currently in Phase 7 at a price of $0.04, following scheduled increases from the initial $0.01 starting price. The team has stated a confirmed launch price of $0.06. To improve accessibility, Mutuum Finance supports direct card payments in addition to crypto transfers. While the V1 testnet remains active, development efforts are focused on refining technical components ahead of a future mainnet release.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
