Mutuum Finance Details Dual-Market DeFi Lending Protocol and Near-Term Testnet Launch as Presale Nears $20M

New updates have been reported about Mutuum Finance.

Mutuum Finance is advancing its decentralized lending and borrowing platform toward a V1 rollout, confirming that development remains on schedule and that a Sepolia testnet launch is targeted for Q1 2026. The protocol is built around a dual-market architecture: a pooled lending market where users supply assets, receive mtTokens representing their positions, and earn yield that scales with borrowing activity; and a peer-to-peer matching market that allows users to open collateralized loans directly with counterparties under the same collateral and liquidation rules. Both markets share a unified risk engine designed to manage loan-to-value thresholds—typically in the 60–75% range for borrowers—and to trigger liquidations during adverse price movements, with a focus on protecting lenders in volatile conditions. The mtToken accounting layer plays a central role, tracking principal and yield in the pool and enabling additional yield opportunities via staking in a safety module funded by protocol revenue used to repurchase MUTM tokens on the open market.

In parallel, Mutuum Finance is building an overcollateralized stablecoin tied to the same collateral and liquidation framework, allowing users to mint a stable asset without selling their underlying holdings and potentially increasing user stickiness within the ecosystem. Security has been a core emphasis: the protocol has completed an external audit with Halborn Security, holds a 90/100 token scan score from CertiK, and is running a $50,000 bug bounty program to identify vulnerabilities ahead of scaled borrowing activity. The upcoming Sepolia testnet is expected to include core components—collateral rules, liquidation logic, pooled and peer-to-peer lending, and risk systems—initially supporting ETH and USDT, before progression to mainnet preparation. On the capital formation side, Mutuum Finance’s structured presale continues, with the MUTM token currently priced at $0.04 in Phase 7 after starting at $0.01 in early 2025, implying a 300% gain for earliest participants. The project reports $19.9 million raised, 18,900 token holders, and 830 million tokens sold from a total 4 billion supply, of which 45.5% (1.82 billion tokens) is earmarked for early access. The presale also uses daily contribution leaderboards and card payment options to broaden participation. Overall, the latest update signals that Mutuum Finance is executing its roadmap across protocol design, risk management, and capital raising, with near-term technical validation on testnet as the next key milestone for stakeholders monitoring product-market fit and security robustness.