Mutuum Finance continues to progress through its development roadmap, reporting steady participation growth and advances within Phase 2 of its planned rollout. The project is positioned as a DeFi initiative focused on building a decentralized lending and borrowing protocol designed for long-term functionality rather than short-term deployment. As of the latest update, Mutuum Finance has expanded its investor base to more than 18,600 holders.
Mutuum Finance is developing a dual lending system that allows users to supply assets to liquidity pools while borrowers access capital through collateral-based loans, with interest rates designed to respond to liquidity and borrowing demand. A core feature is mtTokens, which represent deposits and accrued yield and remain transferable while assets stay active within the protocol. The lending system also incorporates defined loan-to-value limits, liquidation thresholds, and incentive mechanisms for liquidators to help maintain protocol stability during price volatility.
Mutuum Finance has outlined plans related to stablecoin usage and layer-2 integration to reduce volatility and lower transaction costs. Layer 2 networks are expected to improve execution speed, supporting broader daily usage of the platform. Phase 2 focuses on live testing and broader exposure, with finalizing smart contracts, implementing core lending logic, and conducting security reviews.
The codebase for the lending and borrowing system has been completed and is under review, with a V1 deployment targeted on Sepolia in Q4 2025. The initial release is planned to include liquidity pools, mtTokens, debt tokens, and a liquidator bot, with ETH and USDT as the first supported assets. This testnet phase is intended to allow users to interact with the protocol in a controlled environment before any further expansion.
Security remains a central focus, complemented by a CertiK audit scoring 90/100 and Halborn’s ongoing detailed review, plus a $50,000 bug bounty program. The growth to over 18,600 holders indicates broad participation across the holder base, with a distribution pattern viewed as balanced. Additional features such as a 24-hour leaderboard rewarding top contributors and card payments for MUTM aim to drive ongoing participation and broaden accessibility.
Mutuum positions itself as DeFi lending infrastructure, emphasizing dual lending markets and staged deployment in line with trends from established protocols. With Phase 2 progress and a defined V1 timeline, the project is moving from planning toward execution even as it awaits live testing.
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