Mutuum Finance, a decentralized lending and borrowing cryptocurrency protocol currently operating on the Sepolia testnet, has reported that the total value locked (TVL) of the testnet has exceeded $150 million. The team also announced ongoing development activities, including new features scheduled to be released next week.
Mutium Finance (MUTM)
The current price of MUTM token is $0.04. Of the total capped supply of 4 billion tokens, approximately 1.82 billion tokens were allocated to the sale phase. According to project disclosures, approximately 850 million tokens have been sold to more than 19,000 holders, bringing the total amount of funds raised to date to more than $20.6 million.
The team recently implemented a new feature and announced the launch of safe mode preset borrowing in X. Borrowing within the Testnet V1 protocol was structured as a one-click process with predefined risk presets targeting specific stability factor levels (Safe, Balanced, Aggressive). Adding these presets allows users to select a predefined risk profile when opening a borrow position in a test environment.
For example, if a user deposits $1,000 worth of ETH as collateral and the maximum loan-to-value (LTV) ratio is 75%, the user can borrow up to $750 in stablecoins. In the Safe preset, the system maintains a higher collateral buffer by targeting a stronger stability factor. In other words, the user borrows less than the maximum LTV. This reduces liquidation risk during price fluctuations. The Balanced and Aggressive presets allow you to borrow closer to your maximum LTV, increasing capital efficiency while proportionately increasing your exposure to market risk.
Lending and borrowing benefits within the protocol
Many investors may wonder why they need to put up more collateral to borrow crypto assets. The reason is that instead of selling their current holdings, such as Ethereum, users can deposit it as collateral without selling it and borrow USDT for other expenses, while maintaining their exposure to Ethereum and potentially benefiting from price appreciation. In other words, while using the borrowed funds, your Ethereum position will remain intact and you will continue to participate in market movements.
Another element that benefits users is lending within the protocol. When users supply assets to Mutuum Finance, those assets are deposited into a liquidity pool and made available to borrowers. Instead, the protocol issues mtTokens on a 1:1 basis as proof of deposit. These mtTokens represent a user’s share of the pool and generate revenue over time based on borrowing demand and pool utilization.
For example, if a user supplies $10,000 worth of USDT to the protocol and the average annual yield (APY) is around 5-6%, that position could generate a yield of around $500-600 per year, depending on the usage level. The yield is reflected in the increase in the value of mtToken, allowing users to earn passive income while their assets remain in the liquidity pool.
mtToken can also be staked within the protocol, allowing users to receive dividends in MUTM tokens. According to the project’s model, a portion of the fees generated by protocol activity will be used to purchase MUTM tokens from the open market and distribute them to eligible stakers, tying the use of the platform to token-based incentives over time.
Mutuum Finance’s recent testnet milestones and feature updates reflect ongoing development ahead of mainnet deployment. In addition to continued codebase improvements, the project has reported over $20.6 million in funding and over $150 million in total testnet value locked (TVL).
