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Mutuum Finance (MUTM), a new project building decentralized lending infrastructure on Ethereum, has surpassed $20.6 million in fundraising as it develops a non-custodial lending protocol. The platform is designed to let users lend and borrow crypto directly through smart contracts, removing reliance on centralized intermediaries.
The MUTM token is trading around $0.04 and has over 19,000 holders participating in the token distribution. Mutuum’s Sepolia testnet environment has recorded more than $150 million in simulated total value locked (TVL), signaling significant engagement during testing.
Mutuum Finance V1 protocol live on testnet
The V1 protocol is live on the Sepolia testnet, allowing users to simulate lending and borrowing by supplying supported assets to liquidity pools for yield or locking collateral to borrow other tokens. All actions are executed via smart contracts with predefined risk parameters, enabling interaction with on-chain lending markets in a test environment.
Safe-Mode Borrow Presets introduced
Mutuum recently released Safe-Mode Borrow Presets, offering one-click borrowing aligned with predefined Stability Factor targets labeled Safe, Balanced, and Aggressive. The presets automatically adjust borrowing capacity to match the selected risk profile. The team shared a short demonstration of the feature and plans further releases and protocol improvements.
Testnet assets and token mechanics
On Sepolia, users can mint testnet assets such as ETH, USDT, LINK, and WBTC, then supply them to the platform for lending or borrowing and use them in the testnet staking module. Deposits mint corresponding mtTokens (e.g., mtUSDT) at a 1:1 ratio, which represent positions in liquidity pools. Staking mtTokens makes users eligible for MUTM tokens distributed under the protocol’s dividend model.
The release also includes debt tokens that are minted when a user borrows; these track outstanding principal and accrued interest. An automated liquidator bot monitors collateral positions and initiates liquidations when thresholds are breached. A stability factor metric provides a real-time indicator of how well-collateralized a borrowing position is relative to protocol requirements.
Security and roadmap
Before the V1 launch, Mutuum announced completion of an independent audit by Halborn. With fundraising above $20.6 million and a live testnet protocol, Mutuum Finance is advancing its decentralized lending infrastructure on Ethereum. Ongoing feature releases, including risk-based borrowing presets, indicate continued development as the project works toward a planned mainnet launch.
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