DUBAI, United Arab Emirates, Feb. 13, 2026 (GLOBE NEWSWIRE) — The decentralized finance (DeFi) sector has seen a new entry with the development of Mutuum Finance (MUTM). As of February 2026, the project has transitioned into a new stage of its technical roadmap following the activation of its V1 protocol on the Sepolia testnet.
This move signals a shift from the project’s early conceptual design to a phase of public system validation. The protocol is designed to provide a non-custodial environment for lending and borrowing digital assets, using smart contracts to manage transactions and risk without traditional intermediaries.
Core Architecture and Dual Lending Markets
The primary goal of Mutuum Finance is to address capital efficiency in the decentralized credit market through a dual-market architecture. This system is designed to accommodate a variety of user needs by offering two distinct environments: Peer-to-Contract (P2C) and Peer-to-Peer (P2P) lending.
The P2C model operates through pooled liquidity. In this setup, lenders supply major assets like ETH, USDT, WBTC, and LINK into shared smart contract pools. Borrowers can then access these funds immediately by providing over-collateralized assets. Interest rates in the P2C model are dynamic and adjust automatically based on pool utilization. When demand for borrowing increases, the interest rates rise to encourage more deposits.
In contrast, the P2P model is designed for direct agreements between individual participants. This allows lenders and borrowers to negotiate specific terms, such as interest rates, collateral types, and repayment schedules. This model is particularly useful for assets with higher volatility or those that do not fit into large, shared liquidity pools. By combining these two models, Mutuum Finance aims to support both conservative yield-seeking strategies and more flexible, individualized credit agreements.
The Role of mtTokens and Yield Mechanics
A central feature of the Mutuum Finance’s whitepaper is the mtToken. When a user supplies liquidity to the protocol’s pools, they receive mtTokens as a digital receipt of their deposit. These tokens function as interest-bearing assets. Rather than requiring users to manually claim rewards, the protocol is designed so that mtTokens increase in value relative to the underlying asset as borrowers repay their loans with interest.
The protocol’s roadmap also incorporates a “buy-and-distribute” mechanism to link platform activity to the native MUTM token. Under this framework, a portion of the fees generated by lending activity is used to purchase MUTM on the open market. These tokens are then redistributed to participants who stake their mtTokens in the protocol’s safety module. This design intends to align the growth of the platform’s utility with the value of the native token.
Security remains a primary focus for the development team as the protocol moves toward its mainnet debut. Mutuum Finance recently completed a manual security audit of its smart contracts with Halborn, a well-known blockchain security firm. The audit involved an extensive review of the code to identify and remediate potential vulnerabilities in the lending logic and collateral management systems.
In addition to the Halborn audit, the project maintains a high security score from CertiK, reflecting results from continuous automated monitoring. To encourage ongoing safety, the team has also established a $50,000 bug bounty program. This program invites independent researchers to find and report vulnerabilities in the code, providing an extra layer of protection before the system handles live market capital.
Roadmap Milestones
The activation of the V1 protocol on the Sepolia testnet represents the first public environment where users can test the core lending and borrowing flows. This version includes essential modules such as liquidity pools, mtToken issuance, debt tracking, and an automated liquidator bot designed to maintain protocol solvency.
Looking ahead, the Mutuum Finance roadmap includes plans for several major ecosystem expansions. One significant goal is the development of a native, over-collateralized stablecoin. This asset is intended to be minted against the interest-earning collateral held within the protocol, providing users with a stable medium of exchange.
Furthermore, the project plans to integrate with Layer-2 networks to reduce transaction costs and improve settlement speeds. The platform also intends to use decentralized oracles, such as Chainlink, to ensure accurate price data for its automated risk management systems.
Presale Progress and MUTM Distribution
The distribution of the MUTM token has followed a structured, phased model that began in early 2025. Currently, the project is in Phase 7 of its presale. The MUTM token is priced at $0.04, following a series of scheduled increases from the initial starting price of $0.01. The total supply of MUTM is capped at 4 billion tokens, with 45.5% (1.82 billion tokens) allocated specifically for the presale.
To date, the project reports having raised over $20.5 million and surpassing 19,000 individual holders. More than 845 million tokens have been sold through the presale phases so far. Accessibility has been a focus, with the project supporting both cryptocurrency transfers and direct card purchases. As the project progresses through Phase 7, it moves closer to its confirmed launch price of $0.06.
The transition to the current roadmap phase highlights the move from conceptual development to functional testing. With a live testnet environment and completed security audits, Mutuum Finance is positioning itself within the DeFi crypto space as a new crypto protocol focused on building a comprehensive decentralized lending infrastructure.
