Mutuum Finance (MUTM) Development Update: V1 Protocol Advancing with Security Audit Completed

DUBAI, United Arab Emirates, Feb. 04, 2026 (GLOBE NEWSWIRE) -- Mutuum Finance (MUTM) has recently reached several technical milestones. These updates include the activation of its initial protocol version on a public testnet and the completion of a formal security review. As the project progresses through its scheduled roadmap, it is transitioning into a phase focused on system validation and ecosystem expansion.

Mutuum Finance (MUTM) Development Update: V1 Protocol Advancing with Security Audit Completed2

Understanding the Mutuum Finance (MUTM)

Mutuum Finance is developing a non-custodial lending and borrowing platform on the Ethereum blockchain. The project's primary goal is to address capital inefficiencies within the decentralized credit market by offering a dual-market system. This architecture is designed to accommodate different user needs through two distinct environments: the Peer-to-Contract (P2C) and Peer-to-Peer (P2P) models.

The P2C model utilizes pooled liquidity, where lenders supply assets like ETH or USDT into shared smart contract pools. Borrowers can then access these funds immediately by providing over-collateralized assets. Interest rates in this model are dynamic, adjusting automatically based on the utilization of the pools.

In contrast, the P2P model is designed for direct agreements between participants. This allows lenders and borrowers to negotiate specific terms, such as interest rates and collateral types, which is particularly useful for assets with higher volatility.

The Role of mtTokens and Utility Mechanics

A central component of the protocol's functionality is the mtToken. When a user supplies liquidity to the platform's pools, they receive mtTokens as a digital receipt of their deposit. These tokens are interest-bearing assets; their value increases relative to the underlying deposited asset as borrowers repay their loans with interest. This mechanism allows suppliers to track and earn yield directly through the token itself.

To support the ecosystem's long-term sustainability, Mutuum Finance’s whitepaper has outlined a buy-and-distribute mechanism. Under this framework, a portion of the protocol's generated fees is used to purchase the native MUTM token on the open market. These tokens are then redistributed to participants who stake their mtTokens in the protocol's safety module. This design aims to link the growth of the platform's lending activity to the utility of the MUTM token.

New Milestones Achieved

The project has officially entered its public testing phase with the launch of the V1 protocol on the Sepolia testnet. This version introduces the core engine of the platform, including live liquidity pools for assets such as ETH, USDT, WBTC, and LINK. The testnet release allows the development team and the community to monitor debt tracking, collateral health, and the performance of the automated liquidator bot in a simulated environment.

Mutuum Finance (MUTM) Development Update: V1 Protocol Advancing with Security Audit Completed1

Security remains a focal point for the development team. Mutuum Finance recently completed a comprehensive security audit of its smart contracts with Halborn, a prominent blockchain security firm. The audit involved a manual and automated review of the code to identify and remediate potential vulnerabilities. Additionally, the project maintains a high security score from CertiK and has established a $50,000 bug bounty to encourage ongoing vulnerability research.

Future Roadmap Catalysts

Looking ahead, Mutuum Finance’s roadmap intends to expand its service offerings through several planned upgrades. One significant addition to the roadmap 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 borrowers with a stable medium of exchange while their original assets continue to accrue yield.

Furthermore, the protocol plans to integrate with Layer-2 networks. By expanding to these environments, Mutuum Finance aims to reduce transaction costs and improve settlement speeds.

These factors are critical for efficient liquidation processes and overall user experience in a decentralized lending environment. The platform is also designed to rely on Chainlink Oracles to provide the real-time price feeds necessary for accurate collateral valuation.

MUTM Distribution

The distribution of the MUTM token began in early 2025 through a structured, phased model. The project has a fixed total supply of 4 billion tokens, with 45.5% (1.82 billion tokens) allocated to the community through the presale stages. This distribution strategy is intended to ensure broad ownership and a decentralized foundation before the protocol's mainnet launch.

Currently, the project reports having raised over $20.2 million with a community of more than 19,000 holders. More than 840 million tokens have been sold across the various stages. The presale is presently in Phase 7, with the token priced at $0.04. Since the initial phase, which started at $0.01, the valuation has increased by 300%. The team has confirmed an official launch price of $0.06. To facilitate participation, the project supports various payment methods, including direct card purchases.

As the V1 protocol undergoes testing and the presale moves toward its final stages, Mutuum Finance is positioning itself as a high-utility entrant in the DeFi sector. The transition from a testnet environment to a full mainnet release will mark the next crypto significant step in the project's attempt to establish a new altcoin digital lending infrastructure.

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

Media Contact Information

J. Weir
Contact@mutuum.com

Mutuum Finance (MUTM) Development Update: V1 Protocol Advancing with Security Audit Completed

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