Mutuum Finance (MUTM) Development Update: V1 Protocol Launch and Core Markets Explained

Mutuum Finance

DUBAI, United Arab Emirates, Jan. 28, 2026 (GLOBE NEWSWIRE) -- The decentralized finance (DeFi) sector continues to see new entries focusing on lending and borrowing infrastructure. One project currently moving through its technical roadmap is Mutuum Finance (MUTM). The project recently provided an update regarding its transition from a conceptual design to an active protocol. This update covers the upcoming V1 release, core market structures, and the current status of its security and distribution phases.

Overview of the Mutuum Finance Protocol

Mutuum Finance is an Ethereum-based protocol designed to facilitate decentralized lending. Its primary goal is to allow users to access liquidity without selling their long-term digital asset holdings. The protocol is structured around a non-custodial model, meaning users retain control over their funds through smart contracts rather than relying on a centralized intermediary.

The system is built on two core lending environments, referred to as the dual-market model. This structure is intended to accommodate different types of users and asset classes within a single framework.

Peer-to-Contract (P2C) Market: This model uses shared liquidity pools. Lenders deposit assets such as ETH or USDT into these pools to earn interest. Borrowers can then draw liquidity from these pools by providing over-collateralized deposits. Interest rates in this market are dynamic, adjusting automatically based on supply and demand.

Peer-to-Peer (P2P) Market: This environment is designed for direct lending arrangements. It allows lenders and borrowers to agree on specific terms, such as interest rates and duration. This model is often used for niche or more volatile assets that may not fit the parameters of a standardized liquidity pool.

V1 Protocol and mtTokens

A significant development in the project’s timeline is the launch of its V1 protocol on the Sepolia testnet. This test version allows for the evaluation of the protocol’s core logic in a live environment without risking real capital. The V1 release includes several essential components:

The foundational markets are the Liquidity Pools, which support initial assets like ETH and USDT for both lenders and borrowers. When a user provides assets to these pools, they receive mtTokens, such as mtETH, which act as interest-bearing receipts. These tokens are essential because they track the user’s initial deposit while also automatically accounting for the interest that accumulates over time.

On the borrowing side, the system uses Debt Tokens to represent an individual's outstanding loan balance and monitor interest obligations directly on the blockchain. To protect the entire ecosystem, the protocol employs an automated Liquidator Bot. This is a critical risk-management tool designed to maintain protocol solvency by automatically closing out positions that become under-collateralized due to market volatility.

Roadmap and Future Plans

Looking beyond the V1 launch, Mutuum Finance has outlined plans for further expansion. This includes the development of an over-collateralized stablecoin. Users will be able to mint this stablecoin against their holdings, providing a way to access dollar-pegged liquidity while maintaining exposure to their original assets.

Additionally, the team has indicated a move toward Layer-2 integration. By supporting Layer-2 networks, the protocol aims to reduce transaction costs and improve execution speed, which is often a barrier for retail users on the Ethereum mainnet.

Presale and MUTM Distribution Status

The project is currently conducting a structured MUTM presale to distribute its native token, MUTM. The total supply of MUTM is fixed at 4 billion tokens, with 45.5% (1.82 billion tokens) allocated to the presale.

According to recent project data, the total funding for Mutuum Finance has officially surpassed $20.1 million. This financial milestone is supported by a rapidly expanding community, with the investor base now grown to over 19,900 individual holders. The distribution phase is also moving quickly, as more than 835 million tokens have already been sold to early participants.

The presale is currently in Phase 7, with the token priced at $0.04. The project has stated that the official launch price is set at $0.06. This phased approach reflects a 300% increase in the token price since the initial phase began at $0.01 in early 2025.

As Mutuum Finance transitions into its V1 testnet phase in Q1 2026, the project is moving from a development stage to a functional utility phase. By combining a dual-lending model with verified security measures and a structured distribution plan, the protocol is positioning itself as a new participant in the DeFi sector. The testnet period will serve as a final validation step before the protocol proceeds toward its full mainnet launch and token listing.

For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance

J. Weir
Contact@mutuum.com

Mutuum Finance (MUTM) Development Update: V1 Protocol Launch and Core Markets Explained

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