DUBAI, United Arab Emirates, Feb. 20, 2026 (GLOBE NEWSWIRE) — Mutuum Finance (MUTM) has recently entered a new crypto stage of its development cycle, marking the transition into Roadmap Phase 2. This update follows the deployment of the V1 protocol on the Sepolia testnet, a milestone that allows for the public evaluation of the platform’s core lending and borrowing infrastructure. The move into Phase 2 represents a shift toward technical validation and system refinement as the project prepares for its eventual mainnet release.
Understanding the Mutuum Finance (MUTM)
Mutuum Finance (MUTM) is building a decentralized, non-custodial protocol built on the Ethereum network. The project is designed to facilitate digital asset lending and borrowing through the use of automated smart contracts.
At the center of its technical design is a dual-market architecture consisting of Peer-to-Contract (P2C) and Peer-to-Peer (P2P) models. This structure is intended to serve different user needs within a single ecosystem.
The P2C model operates through shared liquidity pools. In this environment, participants can supply major digital assets to earn a yield based on market utilization. Conversely, the P2P market is designed for direct agreements between individual lenders and borrowers, allowing for more customized loan terms, such as specific interest rates and collateral types.
Technical Components
A key part of the Mutuum Finance accounting system is the mtToken. When a user supplies liquidity to a pool, the protocol issues mtTokens as a digital receipt of the deposit. These tokens are interest-bearing, meaning they are designed to grow in value relative to the underlying asset as interest from borrowers is collected.
To maintain the solvency of the lending pools, the protocol includes an Automated Liquidator Bot. This system runs continuously to monitor the health factor of all open loan positions. If the value of a borrower’s collateral falls below a predefined safety threshold, the bot triggers a liquidation to ensure the protocol remains balanced and lenders are protected.
The project’s roadmap includes a “buy-and-distribute” model, where a portion of the protocol’s generated fees is used to purchase MUTM tokens on the open market for redistribution to users who participate in the safety module.
Security Infrastructure and Development Progress
As Mutuum Finance advances through Roadmap Phase 2, security remains a primary focus of the development team. The protocol has completed a manual security audit of its smart contracts with Halborn Security, a firm known for its work in evaluating DeFi risks. To further strengthen the code, the team has established a $50,000 bug bounty program, inviting independent security researchers to identify and report potential vulnerabilities.
The current V1 protocol testnet release on Sepolia includes support for high-utility assets such as WBTC, LINK, USDT, and ETH. This live environment allows users to test the issuance of mtTokens, collateral management, and liquidation logic in a risk-free setting. According to the roadmap, future plans include the launch of an over-collateralized native stablecoin and integration with Ethereum Layer-2 networks to improve scalability.
Presale Data and Token Distribution
The native MUTM token is currently being distributed through a multi-phase presale that began in early 2025. The project has reported total funding of over $20.6 million from a community of more than 19,000 individual holders.
The presale follows a fixed-price and fixed-allocation model, with the token currently in Phase 7 at a price of $0.04. This represents a 300% surge from the initial Phase 1 price of $0.01, as the project moves toward a confirmed launch price of $0.06.
The total supply of MUTM is fixed at 4 billion tokens. According to the distribution plan, 45.5% of the total supply—equivalent to 1.82 billion tokens—is allocated for the presale. Reports indicate that over 845 million tokens have been sold to date. To facilitate broader participation, the project supports various payment methods, including cryptocurrencies and direct card purchases.
Future Milestones and Scalability
As the protocol concludes the initial stages of Roadmap Phase 2, the focus remains on gathering data from the testnet to fine-tune the interest rate models and risk parameters. The successful activation of the V1 protocol provides a benchmark for the project’s ability to deliver on its technical timeline.
Looking ahead, the integration of Layer-2 solutions is expected to be a major step in making the DeFi crypto more accessible by reducing transaction costs. The planned introduction of a native stablecoin is also intended to provide more predictable borrowing options for users. With the security audits completed and the V1 testnet operational, Mutuum Finance continues to progress through its planned DeFi crypto development stages as it moves closer to a full mainnet deployment.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
