Mutuum Finance (MUTM) is a decentralized lending and borrowing protocol currently operating on the Sepolia testnet, where its core features are being tested ahead of a planned mainnet launch. The team has reported ongoing improvements to the protocol’s codebase, while total funds raised have surpassed $20.65 million, according to project disclosures.
Mutuum Finance (MUTM)
Recently on X, the team published a “weekly update” outlining ongoing improvements to the protocol. The update stated: “The team has been working on a few upcoming features, while also improving key parts of the codebase, including optimizations to the Stability Factor.” The post also noted, “Next week, we’re rolling out a new feature. Stay tuned.”
A few days earlier, the team reported that more than $20.6 million had been raised and highlighted current participation metrics, including over $150 million in testnet total value locked (TVL). While the MUTM token is currently priced at $0.04, with more than 850 million tokens sold to over 19,000 holders.
How to Lend and Borrow with Mutuum Finance?
Ahead of its planned mainnet release, users can test the core features of the protocol on the Sepolia testnet. In the current beta application, users can connect a wallet and mint testnet assets such as WBTC, ETH, LINK, and USDT. These assets can be supplied to the protocol, with mtTokens issued in return as proof of deposit, allowing users to observe how the lending and borrowing mechanics function within the platform.
For example, supplying WBTC results in the issuance of mtWBTC. These mtTokens can also be staked, allowing users to observe how MUTM token dividends would be distributed within the system.
Beside mtTokens and liquidity pools, the team has also outlined additional core features currently integrated into the testnet version of the platform.
Debt Token – When a user borrows assets, a corresponding debt token is minted. This token represents the borrowed amount and tracks the principal plus accumulated interest over time.
Liquidator Bot – An automated mechanism that monitors borrowing positions and triggers liquidations if collateral levels fall below required thresholds, helping maintain protocol solvency.
Stability Factor – A risk indicator that measures how safe a borrowing position is by comparing the value of collateral to the borrowed amount. A higher stability factor reflects a more secure position.
The smart contract for the lending and borrowing protocol underwent a security audit conducted by Halborn prior to its testnet release. Halborn is a blockchain security firm that has also performed audits for major projects, including Coinbase, according to the firm’s public disclosures.
While the current focus remains on improving the core protocol, the whitepaper outlines additional long-term development plans. These include multichain expansion to broaden network compatibility and ecosystem reach.
The document also references the introduction of a native overcollateralized stablecoin in the future. The proposed stablecoin is intended to maintain a 1:1 alignment with the U.S. dollar and would be minted against collateral supplied within the protocol.
Mutuum Finance continues to develop its lending and borrowing protocol while reporting funding and participation milestones during the testnet phase. With core mechanics live on Sepolia and additional upgrades in progress, the project remains focused on refining infrastructure ahead of a planned mainnet launch.
Future expansion plans, including multichain integration and a native stablecoin, indicate a broader roadmap, with further progress expected as development advances toward planned mainnet deployment.
