DUBAI, United Arab Emirates, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Mutuum Finance (MUTM), an Ethereum-based DeFi crypto project developing a structured lending protocol, has announced new progress across its roadmap as the team continues advancing through Phase 2. With development moving steadily and community participation expanding to more than 18,400 active investors, the project is gaining more attention as it approaches the next major release scheduled for Q4 2025.
Development Progress and the Growing Framework
Mutuum Finance is focused on building a decentralized lending system that supports predictable and transparent financial activity. The protocol is being designed with two connected lending environments. Users are able to supply assets such as ETH or USDT and receive mtTokens. These mtTokens increase in value as borrowers repay interest. This mechanism aims to give lenders predictable yield that reflects real protocol usage.
Borrowers use a system with adjustable interest levels that respond to the amount of liquidity available in the pool. When liquidity is strong, borrowing can remain more affordable. When the pool becomes tighter, borrowing costs increase. Loan-to-value requirements create structure for collateral. If the collateral value drops too far, liquidation may occur. Liquidators repay part of the loan and receive a portion of the collateral. Mutuum Finance states that this helps stabilize the system during volatile periods.
Phase 2 of the roadmap has focused on refining these functions. The team reports steady progress with contract behavior updates, interest recalculations, collateral logic adjustments and internal testing for liquidation events. Interface changes have also been made to prepare for user testing during the upcoming V1 release.
Expanding Community and Consistent Funding Flow
Mutuum Finance continues to see rising participation. Funding has reached $19.250M, and the number of active investors has climbed past 18,400. The team states that this steady growth reflects the project’s visibility and continued engagement around development updates.
The presale began in early 2025 with a starting price of $0.01. The token now sits at $0.035, showing a 250% increase as the project moves closer to its testnet launch. This increase reflects broad participation rather than short cycles of interest. Mutuum Finance reports that user activity has remained consistent throughout each roadmap stage.
Out of the 4B total token supply, 1.82B MUTM were allocated for the presale. This equals 45.5% of all tokens. More than 815M tokens have already been purchased. The distribution model aims to give early users a meaningful share of the supply ahead of the protocol’s V1 testing period.
Phase 6 allocation has now passed 96%, leaving only a small amount of supply at the current price. Mutuum Finance reports that demand has increased as the available supply continues to shrink.
mtToken Yield and Protocol Design
A major part of the project’s design is centered around mtTokens. When a user supplies ETH or USDT, they receive mtTokens that grow in value as borrowers repay interest. This gives users a clear way to track earnings and helps ensure that the protocol’s yield is tied to actual activity inside the system rather than external incentives.
The team is preparing mtTokens to play a larger role in later phases. Future tools will expand how users interact with mtTokens once borrowing activity increases. Mutuum Finance states that the goal is to create a lending ecosystem where rewards reflect the protocol’s real growth rate.
Mutuum Finance is also developing a USD-pegged stablecoin supported by borrower interest. Stablecoins are important for lending protocols because they give borrowers predictable loan values and increase liquidity. The planned stablecoin will function as one of the central assets inside the protocol once V1 is live.
Layer-2 expansion is another part of the roadmap. The team intends to deploy Mutuum Finance onto multiple L2 networks to improve speed and reduce gas costs. Lending platforms rely on rapid updates for collateral, interest levels and liquidation checks. Lower transaction costs and faster execution times make these processes more efficient. The project states that L2 expansion will help support long-term adoption once activity grows.
Halborn Security Review and Roadmap Alignment
Security has been one of Mutuum Finance’s top priorities. The team completed a CertiK audit and received a 90 out of 100 Token Scan score. Halborn Security is reviewing the protocol’s smart contracts. This review includes interest behavior, liquidation logic, collateral thresholds and the internal math that governs borrowing and lending functions.
Halborn’s audit is focused on ensuring that each part of the system responds correctly under different market conditions. Mutuum Finance reports that Halborn Security is testing potential edge cases, stress events and interactions between interest movement and collateral behavior. A $50,000 bug bounty is active to allow outside developers to report potential issues ahead of the testnet launch.
Mutuum Finance confirmed on its official X page that the V1 testnet remains on schedule for Q4 2025. V1 will introduce the full lending pool, mtTokens, repayment activity, liquidation triggers and the debt engine. ETH and USDT will be supported at launch.
Users will be able to track collateral levels, borrow positions and mtToken growth during the testnet period. The team plans to gather feedback from this stage to refine the protocol before moving toward the next roadmap phase.
Phase 2 development has prepared the codebase for the transition from internal testing to community usage. Mutuum Finance states that final refinements are ongoing and that additional documentation will be released before V1 becomes available.
Mutuum Finance continues to advance through Phase 2 as its user base grows and security reviews progress. With $19.250M raised, 18,400 active investors, a refined lending structure, mtToken yield mechanics, planned stablecoin integration, L2 expansion and an upcoming Q4 V1 testnet, the project is positioning itself as a notable entry within the DeFi top crypto category. More updates are expected as the team completes the remaining technical steps and prepares for public testing.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
