DUBAI, United Arab Emirates, Feb. 18, 2026 (GLOBE NEWSWIRE) —
As the decentralized finance (DeFi) sector continues to evolve in 2026, Mutuum Finance (MUTM) has reached a significant technical milestone. The project has officially launched its V1 protocol on the Sepolia testnet for public evaluation. This development follows the completion of a comprehensive manual security audit by Halborn, a well-known blockchain security firm. With the core lending engine now accessible for testing, the project is transitioning from its initial design phase into a functional environment where users can interact with its foundational smart contracts.
Understanding Mutuum Finance and the Dual Lending Model
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Mutuum Finance (MUTM) is building a non-custodial protocol designed to automate the lending and borrowing of digital assets. The primary goal of the project is to provide a transparent alternative to traditional banking by using smart contracts to manage transactions, interest rates, and risk management without intermediaries. The protocol is built around a dual-market architecture that aims to provide flexibility for different types of users:
Peer-to-Contract (P2C): This model uses shared liquidity pools. Users deposit assets like ETH, WBTC, LINK, and USDT into these pools to earn variable interest. Borrowers can access this liquidity instantly by providing over-collateralized assets as security.
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Peer-to-Peer (P2P): This model is intended for more direct, customized agreements. It allows lenders and borrowers to negotiate specific terms-such as interest rates and collateral requirements-directly with one another. This is particularly useful for assets that may not fit the standard parameters of a shared liquidity pool.
Yield Mechanics and mtTokens
A core feature of the Mutuum Finance’s whitepaper is the mtToken system. When a participant supplies liquidity to the P2C pools, they receive mtTokens (e.g., mtETH or mtUSDT) as a digital receipt. These are not just placeholders; they are interest-bearing assets.
As borrowers repay their loans with interest, the value of the mtTokens increases relative to the underlying deposited asset. This design allows liquidity providers to earn a passive yield that is tracked directly through the token itself, removing the need to manually claim rewards.
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Additionally, the protocol’s roadmap features a buy-and-distribute mechanism, where a portion of the fees generated by platform activity is used to purchase MUTM tokens from the open market for redistribution to community participants.
Security Foundations and Risk Management
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Security is a central focus for the Mutuum Finance team. Before the testnet launch, the protocol’s V1 smart contracts underwent a manual review by Halborn Security to identify and fix potential vulnerabilities.
This is in addition to a previously completed token audit by CertiK, where the project achieved a high trust score of 90/100. To protect the protocol from market volatility, the protocol’s developing system incorporates several risk management tools:
* Health Factor: This is a real-time score that monitors the safety of a borrowing position. It compares the value of the collateral against the borrowed debt.
* Automated Liquidator Bot: If a user’s Health Factor drops below a safe threshold, the bot can trigger a liquidation to ensure the protocol remains solvent and lenders are protected.
* Decentralized Oracles: The platform relies on real-time data from decentralized oracles to ensure accurate pricing for all supported assets.Presale Progress and MUTM Distribution
The distribution of the native MUTM token is currently being managed through a structured, multi-phase presale. The project has reported strong interest, having raised over $20.58 million with a community of more than 19,000 individual holders.
Currently, the project is in Phase 7, with the token priced at $0.04. This follows a series of scheduled price increases from the initial starting price of $0.01 in early 2025. Out of the total fixed supply of 4 billion tokens, 45.5% (1.82 billion) have been allocated to the presale, with over 845 million already distributed. The project has confirmed a launch price of $0.06 for when the token debuts on major exchanges.
As the V1 protocol continues its testing phase on the Sepolia network, the development team is focusing on fine-tuning the technical engine and gathering user feedback. This “technical-first” approach is intended to ensure a stable and secure environment for the eventual mainnet release of this next crypto lending infrastructure.
For more information about Mutuum Finance (MUTM) visit the links below:
