Mutuum Finance Sets Q1 2026 Testnet Launch as It Advances Dual-Market DeFi Lending Protocol

New updates have been reported about Mutuum Finance.

Mutuum Finance is advancing toward a key technical milestone with the planned Q1 2026 release of its V1 decentralized lending and borrowing protocol on the Sepolia testnet, marking its shift from design to a functioning non-custodial asset management platform. The protocol is architected around a dual-market structure that combines pooled liquidity (Peer-to-Contract) with direct lending (Peer-to-Peer), aiming to improve capital efficiency and flexibility for digital asset users. Liquidity providers receive mtTokens representing their deposits, which are designed to accrue value as borrowers pay interest, while a buy-and-redistribute fee model uses protocol revenues to repurchase MUTM tokens on the market and distribute them to safety and staking participants, tying token economics directly to platform usage rather than pure speculation. The V1 testnet will focus on core lending mechanics such as collateral handling and interest rate models, with the test phase serving to validate smart contract robustness before any mainnet deployment.

Beyond the initial release, Mutuum Finance’s roadmap includes the development of a native over-collateralized stablecoin to give users a more predictable unit of account for managing debt within the protocol and plans to integrate Layer-2 networks to cut transaction costs and increase throughput. The team has placed notable emphasis on security, completing an independent audit by Halborn and maintaining a 90/100 score on CertiK’s token scan, alongside a $50,000 bug bounty program to incentivize external code review. On the capital formation side, Mutuum Finance has raised over $19.9 million from more than 19,000 holders in an ongoing presale, with 45.5% of its 4 billion MUTM token supply earmarked for presale stages; the token price has stepped up from $0.01 in early 2025 to $0.04 in the current Phase 7, with a stated launch price target of $0.06. As Q1 2026 approaches, the success of the Sepolia testnet, combined with its tokenomics, security posture, and scalability plans, will be central to assessing Mutuum Finance’s ability to compete within the DeFi lending market and deliver on its proposed infrastructure for institutional and retail users.