The decentralized finance (DeFi) sector is moving through a period of technical transition as 2026 begins. For many emerging projects, the shift from conceptual roadmaps to functional code is a primary benchmark for progress. Mutuum Finance (MUTM), an Ethereum-based lending protocol, has recently reached this stage with the activation of its Version 1 (V1) protocol. This update provides an overview of the protocol’s current technical status, its structural design, and the broader roadmap as it moves toward a full market presence.
What Is Mutuum Finance (MUTM)?
Mutuum Finance is a non-custodial protocol designed to facilitate lending and borrowing directly on the blockchain. The platform aims to provide a decentralized alternative to traditional credit systems by allowing users to interact with liquidity through automated smart contracts. At its core, the protocol’s design aims to serve two different market needs through a dual lending model.
The first component is the Peer-to-Contract (P2C) market. This system relies on shared liquidity pools where users can supply digital assets to earn a return. These pools provide immediate liquidity for borrowers, who can access funds by providing collateral. Interest rates in the P2C model are dynamic, meaning they adjust automatically based on the supply and demand within each pool.
The second component is the Peer-to-Peer (P2P) market. This environment is designed for more customized lending arrangements. It allows lenders and borrowers to negotiate specific terms, such as interest rates and loan durations, which may be more suitable for niche or volatile assets that do not fit into the primary liquidity pools.
Key Technical Features
One of the central features of the Mutuum Finance ecosystem is the mtToken. When a user supplies assets to a liquidity pool, the protocol issues mtTokens as a receipt of the deposit. These tokens represent the user’s share of the pool and act as yield-bearing assets.
Instead of distributing interest as separate payments, the protocol is designed so that mtTokens increase in value relative to the underlying asset as interest is repaid by borrowers. To maintain the stability of these markets, the protocol’s roadmap incorporates several risk management tools:
The most recent technical milestone for the project is the launch of the V1 protocol on the Sepolia testnet. This release allows users and developers to interact with the core lending and borrowing logic in a controlled environment. The V1 version includes the initial liquidity pools, mtToken minting, and the liquidator bot functionality. Initial testing on the Sepolia network supports major assets, including ETH and USDT.
Security has been a significant part of the V1 development process. Mutuum Finance has completed an independent security audit of its lending and borrowing smart contracts conducted by Halborn Security. This review was intended to verify the integrity of the code and the logic behind the risk management systems.
In addition to the Halborn audit, the MUTM token contract was reviewed by CertiK, receiving a 90/100 Token Scan score. The project also maintains a $50,000 bug bounty program to encourage the ongoing identification of potential vulnerabilities by external researchers.
Progress and MUTM Distribution
The development of Mutuum Finance has been supported by a structured token distribution that began in early 2025. The total supply of MUTM is fixed at 4 billion tokens, with 45.5% (1.82 billion) allocated for the presale. As of the latest reports, the project has raised over $20.2 million and surpassed 19,000 individual holders.
The presale is currently in Phase 7, where the token is priced at $0.04. This follows a progression from the Phase 1 starting price of $0.01, representing a 300% increase across the different stages of the sale. The project has stated an official launch price of $0.06 for when the token reaches the public market. Participation in the presale has been supported by multiple payment options, including major cryptocurrencies and a direct card payment feature intended to simplify the onboarding process.
The team has also outlined plans for Layer-2 (L2) integration. By moving transaction processing to L2 networks, the protocol aims to offer faster settlement times and significantly lower gas fees for users. These technical updates are part of the transition toward a full mainnet launch, which the project indicates will coincide with the token listing.
