DUBAI, United Arab Emirates, Jan. 29, 2026 (GLOBE NEWSWIRE) -- The decentralized finance (DeFi) sector has seen a steady introduction of new protocols designed to automate lending and borrowing. Mutuum Finance (MUTM) is one such project that has been developing an Ethereum-based platform for non-custodial asset management. As of late January 2026, the project has reached several technical and distribution milestones, including the transition into its seventh presale phase and the activation of its V1 protocol on the Sepolia testnet.
Architecture of Mutuum Finance (MUTM)
Mutuum Finance (MUTM) is building a decentralized mechanism that allows users to interact with digital assets through two distinct lending models. This dual-market approach is intended to provide flexibility for different types of participants, ranging from those seeking stable yield to those looking for customized borrowing terms.
The first model is the Peer-to-Contract (P2C) system. In this environment, lenders supply assets like ETH or USDT into shared liquidity pools. These pools allow borrowers to access funds immediately based on algorithmically determined interest rates.
These rates adjust automatically according to the utilization of the pool. When demand for borrowing is high, interest rates rise to encourage more deposits. When liquidity is abundant, rates decrease to make borrowing more accessible.
The second model is the Peer-to-Peer (P2P) system. This market is designed for more individualized lending agreements. It allows participants to negotiate specific terms, such as interest rates and collateral requirements, directly with one another.
This is particularly useful for niche or higher-volatility assets that might not be suitable for large, shared liquidity pools. By combining these two models, Mutuum Finance aims to create a unified platform that addresses various liquidity and risk management needs.
The Role of mtTokens and Utility Mechanics
A central component of the Mutuum Finance ecosystem is the mtToken. When users supply liquidity to the P2C pools, they receive mtTokens in return. These serve as a digital receipt of the deposit. However, they also function as interest-bearing assets.
As borrowers repay their loans with interest, the value of mtTokens increases relative to the underlying deposited asset. This allows suppliers to earn a yield that is tracked directly through the token itself.
The protocol also includes a buy-and-distribute mechanic. A portion of the fees generated by the lending activity is used by the protocol to purchase MUTM tokens on the open market. These tokens are then distributed to users who participate in the protocol’s safety and staking mtTokens. This design is intended to link the performance of the native token to the actual usage and revenue generation of the lending platform.
V1 Launch and Future Roadmap
The V1 protocol has officially activated its public testing phase on the Sepolia testnet. This version includes core features such as liquidity pools, mtToken issuance, debt tracking, and an automated liquidator bot. The testnet period allows the development team to monitor the system's performance in a simulated environment before deploying it to the Ethereum mainnet.
Looking beyond the V1 launch, the Mutuum Finance roadmap includes plans for a native, over-collateralized stablecoin. This asset is intended to provide borrowers with a stable medium of exchange that is backed by the interest generated within the protocol.
Furthermore, the team is exploring integration with Layer-2 networks. By expanding to these networks, the protocol aims to reduce transaction costs and increase processing speeds, which are essential for efficient collateral management and liquidation.
Presale Progression and Distribution
The MUTM token is currently being distributed through a structured multi-phase presale. This process began in early 2025 at an initial price of $0.01 per token. The project is now in Phase 7, with the token priced at $0.04. This reflects a 300% increase across the previous six stages.
The project reports that over $20 million has been raised to date, with participation from more than 19,000 investors. This broad distribution is intended to prevent a high concentration of tokens among a small number of holders.
The project also features a 24-hour leaderboard that rewards the top daily contributor with $500 in MUTM tokens. Participation is accessible via several methods, including direct card payments, which simplifies the onboarding process for new users. As Phase 7 progresses, the project is moving closer to its confirmed launch price of $0.06, which will mark the transition from the presale stage to active launch.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
J. Weir Contact@mutuum.com
