DUBAI, United Arab Emirates, Dec. 20, 2025 (GLOBE NEWSWIRE) -- Mutuum Finance (MUTM) has released new information outlining its development progress as the project prepares for a V1 launch targeted for Q4 2025. The update places focus on protocol design, security reviews, and the current status of the token distribution. As a new crypto project in the DeFi crypto sector, Mutuum Finance remains under development, with its first beta features planned for a Sepolia testnet environment. The update provides a clearer picture of what the protocol is building and how it is positioning itself ahead of its next crypto technical milestone.
What Mutuum Finance (MUTM) Is Building
Mutuum Finance is developing a decentralized lending and borrowing protocol designed to support dual lending markets. The goal is to allow users to supply assets, earn yield, and borrow liquidity without relying on centralized intermediaries.
The protocol is structured around two lending environments. One focuses on pooled liquidity, where users supply assets into shared pools. Borrowers draw from these pools, and interest rates adjust based on utilization. When borrowing demand increases, rates rise. When liquidity is abundant, rates remain lower. This structure aims to balance supply and demand over time.
The second lending environment allows for more direct matching between lenders and borrowers. This approach supports flexible borrowing terms and different interest rate preferences, depending on asset type and market conditions. Both environments are designed to operate within the same protocol framework.
When users supply assets, they receive mtTokens. These tokens represent a claim on supplied liquidity and grow in value as interest accrues. mtTokens are central to how users track yield within the system.
Borrowing, Risk Controls and Liquidations
Borrowing within Mutuum Finance is designed around overcollateralization. Users must supply collateral that exceeds the value of borrowed assets. This buffer is intended to protect the protocol against price volatility.
Loan-to-Value limits cap how much can be borrowed relative to collateral. If market conditions change and collateral value falls below a defined threshold, the position becomes eligible for liquidation. Liquidators repay part of the outstanding debt and receive collateral at a discount. This process is designed to maintain system solvency.
The protocol also includes asset-specific parameters. Deposit caps and borrow caps limit exposure to individual tokens. Certain assets may operate under restricted collateralization rules if liquidity or price stability is limited. These controls are intended to reduce systemic risk across the platform.
Stablecoin and Layer 2 Plans
Stablecoins are expected to play an important role in the Mutuum Finance ecosystem. Stable assets often drive borrowing demand, particularly during periods of market volatility. Supporting stablecoins allows users to access predictable borrowing costs and manage exposure more effectively.
Mutuum Finance has also outlined plans to support Layer 2 environments. Lower transaction fees and faster settlement are often critical for lending platforms. Layer 2 support is intended to improve usability and scalability as activity grows. These plans remain part of the longer-term roadmap and are not yet live.
Accurate pricing is essential for lending and liquidation systems. Mutuum Finance is designed to rely on robust oracle infrastructure, with plans to use Chainlink data feeds. These feeds can provide price data based on USD and native assets, supporting fair collateral valuation.
The roadmap also anticipates fallback oracle systems and aggregated pricing sources. These measures aim to maintain pricing accuracy if a primary data feed experiences delays or disruptions.
V1 Launch Timeline and Halborn Audit
According to official updates shared by the team, Mutuum Finance plans to deploy its V1 protocol on the Sepolia testnet in Q4 2025. The V1 release is expected to include core components such as liquidity pools, mtTokens, debt tokens, and an automated liquidator bot.
ETH and USDT are planned as the initial assets available for lending, borrowing, and collateral. The V1 deployment will represent a beta phase rather than a full mainnet launch. This stage is intended to allow testing, feedback, and further refinement.
Security remains a central part of the project’s development process. Mutuum Finance has confirmed that Halborn Security is conducting an independent audit of its lending and borrowing smart contracts. The codebase has been finalized and is currently under formal review.
In addition, the MUTM token has received a 90/100 score on the CertiK token scan. This assessment provides an external review of token-related risks and design considerations.
A $50k bug bounty focused on identifying code vulnerabilities is also active. The goal is to encourage external testing ahead of broader deployment.
Token Distribution and Presale Status
Mutuum Finance has raised $19.4M through its token distribution process. The project reports approximately 18,600 holders to date. The total supply of MUTM is fixed at 4B tokens.
Of this total supply, 45.5% has been allocated to the presale, which equals roughly 1.82B tokens. So far, around 820M tokens have been sold. The current token price is $0.035, corresponding to Phase 6 of the presale, which is now over 99% allocated.
The presale began in early 2025, with the initial token price set at $0.01. Since then, the token price has increased across phases in line with the project’s pricing structure. The official launch price is set at $0.06.
Mutuum Finance continues to develop as a new crypto project within the DeFi crypto space. Its focus remains on building lending infrastructure, completing security reviews, and preparing for the V1 testnet launch.
The project’s next major milestone is the Q4 2025 V1 deployment on Sepolia. Until then, development, auditing, and testing remain the primary areas of focus. As a next crypto candidate under active construction, Mutuum Finance is moving through a defined roadmap with publicly shared updates. The coming months are expected to center on finalizing technical components and preparing the protocol for its first live testing phase.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
