Dubai, UAE, November 27th, 2025, FinanceWire
Mutuum Finance (MUTM), a decentralized finance (DeFi) protocol, has announced the completion of Phase 2 of its development roadmap. According to the project team, core protocol features have been finalized and are currently undergoing additional review. The V1 Testnet launch remains scheduled for Q4 2025. Ongoing development efforts include enhancements to the platform’s lending infrastructure, user accessibility, and security framework.
Building a Dual-Market DeFi Lending Framework
Mutuum Finance is developing a decentralized lending protocol built around two distinct lending environments: Peer-to-Contract and Peer-to-Peer markets.
In the Peer-to-Contract market, users supply assets into liquidity pools and receive mtTokens in return. These tokens increase in value as borrowers repay interest, offering yield that reflects actual protocol usage. This structure is designed to support users seeking a more automated and transparent lending model.
Simultaneously, the Peer-to-Peer market enables lenders and borrowers to establish custom loan agreements. Participants can select between variable interest rates—adjusted according to market utilization—or fixed rates for predictable repayment terms. The system integrates loan-to-value (LTV) limits, collateral management, and liquidation safeguards to maintain operational integrity.
By combining these two lending frameworks, Mutuum Finance aims to provide greater structural flexibility compared to single-model DeFi lending protocols.
mtToken Mechanics and Yield Structure
mtTokens serve as the principal yield-bearing instrument within Mutuum Finance’s economic model. When users supply assets to the protocol, they receive mtTokens as representations of their deposits. These tokens accrue value over time as borrowers repay interest, reflecting actual lending activity rather than relying on inflationary incentives.
The system is structured to offer a more transparent approach to yield generation by directly linking returns to protocol utilization. This model is intended to address challenges seen in other DeFi platforms, such as reliance on unsustainable token emissions or artificially elevated APYs.
In addition to their role in yield accrual, mtTokens also contribute to the protocol’s safety infrastructure. Users can stake mtTokens in a dedicated safety module, through which they become eligible to receive redistributed MUTM tokens via a buy-and-distribute mechanism. This dual function supports long-term protocol engagement and aims to strengthen systemic resilience.
Expansion Strategy
Mutuum Finance is finalizing development plans for an on-demand minted and burned stablecoin, pegged to the US dollar. The asset is intended to provide a consistent unit of account for borrowing and lending transactions within the protocol.
Stablecoins are a foundational component of decentralized finance (DeFi) lending systems, offering users a means to access liquidity while mitigating exposure to price volatility. Mutuum Finance’s planned stablecoin is being designed to contribute to liquidity depth and support lending market functionality upon activation.
As part of its broader roadmap, the project also intends to deploy its protocol across multiple layer-2 networks. The expansion aims to reduce transaction costs, enhance processing speed, and broaden accessibility. Layer-2 scalability solutions have become increasingly relevant for DeFi platforms addressing the limitations of high-fee environments.
Mutuum Finance plans to introduce its lending functions across several L2 solutions after V1, giving it the ability to reach broader user segments and encourage cross-chain participation. This strategy is aligned with the increasing shift toward L2 protocols across the industry.
Security Progress and Halborn Review
Security continues to be a major focus as Mutuum Finance progresses through Phase 2. Earlier this year, the project completed a CertiK audit with a 90/100 Token Scan score, confirming the strength of its initial contract structure. As part of Phase 2, the team delivered the finalized protocol code to Halborn Security, which is performing deeper analysis on the contract logic and interaction models.
Halborn’s review covers collateral controls, mtToken behavior, the borrowing engine, liquidation rules and oracle connectivity. With the code now finalized, the project states that it is preparing for the next audit phase to ensure protocol integrity before V1 launches.
Mutuum Finance confirmed the upcoming launch of its V1 protocol on the Sepolia Testnet, scheduled for Q4 2025. The testnet deployment will include core components such as the liquidity pool, mtTokens, the debt-token mechanism, and the automated liquidation bot. At launch, ETH and USDT will be the initial supported assets for borrowing and lending functions.
The V1 release will represent the first real-world demonstration of the protocol’s dual-market lending design. Users will be able to interact with the system, test its mechanics and provide feedback ahead of the mainnet rollout. V1 also serves as a foundation for the additional features planned in later roadmap phases, including expanded asset support, enhanced risk modeling and cross-chain connectivity.
Presale Activity and Community Growth
Mutuum Finance began its presale in early 2025 at a price of $0.01. As interest increased through later stages, the token price rose to $0.035, representing a 250% increase. Funding has now surpassed $19M, and the community continues to expand with more than 18,200 holders.
The total supply of MUTM is 4B tokens, with 1.82B tokens allocated toward the presale. More than 800M of those tokens have already been purchased. The presale is currently in Phase 6, which has progressed past 92% allocation.
Mutuum Finance also maintains a 24-hour leaderboard that rewards the top daily contributor with $500 in MUTM. This mechanism helps maintain steady engagement and broad participation.
By building key components of its lending engine, mtToken mechanics, stablecoin framework and revenue model, Mutuum Finance has advanced steadily through its roadmap and is now completing Phase 2 with core protocol features finalized.
With the V1 Testnet launch confirmed for Q4 2025, Mutuum Finance continues to progress toward operational readiness. The project reports ongoing security audits by CertiK and Halborn, alongside sustained participation in its presale and growth in community engagement. These developments mark continued steps in the protocol’s roadmap toward functionality and broader ecosystem integration.
About Mutuum Finance (MUTM)
Mutuum Finance (MUTM) is a decentralized finance platform developing a dual-market lending protocol that combines pooled liquidity mechanisms with peer-to-peer lending structures. The project’s design incorporates mtTokens, collateral rules and automated risk controls, with additional features such as a stablecoin framework and Layer-2 expansion included in its roadmap. Its upcoming V1 Testnet release on Sepolia will present the protocol’s core lending components for public testing as the project progresses toward broader functionality.
For more information about Mutuum Finance (MUTM), users can visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance