Mutuum Finance (MUTM) is a decentralized lending and borrowing protocol currently operating on the Sepolia testnet, where its core functionality is being tested ahead of the planned mainnet launch. The team reports continuous improvements to the protocol’s codebase, and the total amount of funding raised exceeds $20.65 million, according to project disclosures.
Mutium Finance (MUTM)
Recently at X, the team published a “Weekly Update” outlining continued improvements to the protocol. The update states, “The team is working on several upcoming features while improving important parts of the codebase, including stability factor optimizations.” The post also states, “We’ll be rolling out new features next week. Stay tuned.”
A few days ago, the team reported that over $20.6 million had been raised, highlighting current participation metrics including over $150 million in Testnet Total Value Locked (TVL). The MUTM token is currently priced at $0.04 and over 850 million tokens have been sold to over 19,000 holders.
How do I lend or borrow with Mutuum Finance?
Ahead of the planned mainnet release, users can test the core functionality of the protocol on the Sepolia testnet. The current beta application allows users to connect to their wallets and create testnet assets such as WBTC, ETH, LINK, and USDT. These assets can be provided to the protocol along with mtTokens that are issued on their behalf as proof of deposit, allowing users to observe how lending and borrowing mechanisms work within the platform.
For example, supplying WBTC will generate mtWBTC. These mtTokens can also be staked, allowing users to observe how MUTM token dividends are distributed within the system.
Besides mtToken and liquidity pools, the team also outlined additional core features that are currently integrated into the testnet version of the platform.
Debt Token – When a user borrows an asset, a corresponding debt token is minted. This token represents the amount borrowed and tracks the principal and accumulated interest over time.
Liquidator Bot – An automatic mechanism that monitors borrowing positions and triggers liquidation if collateral levels fall below a required threshold, helping to maintain the solvency of the protocol.
Stability Coefficient – ​​A risk indicator that measures how secure a borrowing position is by comparing the value of the collateral to the amount borrowed. A higher stability factor indicates a safer position.
The lending and borrowing protocol smart contracts underwent a security audit conducted by Halborn prior to the testnet release. According to the company’s public information, Halborn is a blockchain security company that also audits major projects such as Coinbase.
While the current focus remains on improving the core protocol, the whitepaper outlines additional long-term development plans. This includes multi-chain expansion to increase network compatibility and ecosystem reach.
The document also mentions the introduction of a future native super-collateralized stablecoin. The proposed stablecoin aims to maintain a 1:1 alignment with the US dollar and will be issued against collateral provided within the protocol.
Mutuum Finance continues to develop its lending and borrowing protocols while reporting funding and participation milestones during the testnet phase. With core mechanics running on Sepolia and additional upgrades underway, the project remains focused on refining the infrastructure ahead of the planned mainnet launch.
Future expansion plans, including multi-chain integration and a native stablecoin, point to a broader roadmap, with further progress expected as development progresses towards the planned mainnet deployment.
