Mutuum Finance is moving into a critical phase of its development, preparing for the launch of its V1 lending and borrowing protocol on the Sepolia testnet in the fourth quarter of 2025. The upcoming milestone follows a highly successful presale that has raised $17.6 million, signaling strong investor interest in its approach to decentralized finance (DeFi).

Presale Success Highlights Strong Market Demand

The project’s presale, now in its sixth phase, has sold over 770 million MUTM tokens to a global community of more than 17,300 investors. Its structured, multi-stage model has been a key driver of participation. The sale began with MUTM priced at $0.01 in Phase 1 and has since seen its value climb by 250% to the current price of $0.035. This tiered approach rewards early supporters while providing a transparent and predictable path toward its planned launch price of $0.06.

Inside the Protocol’s Dual-Market Design

According to the team, the V1 protocol will initially support ETH and USDT, introducing core components like a liquidity pool, mtTokens, debt tokens, and a liquidator bot. The platform is built on a dual-market model to accommodate different user needs. In its Peer-to-Contract (P2C) market, users deposit assets into shared liquidity pools to earn yield from borrowers. For less liquid assets or customized loan terms, a Peer-to-Peer (P2P) market allows lenders and borrowers to negotiate terms directly.

When users deposit assets, they receive mtTokens, which are interest-bearing tokens representing their share in a liquidity pool. To align the platform’s success with token value, a portion of protocol revenue is used to purchase MUTM on the open market and redistribute it to users staking in its safety module. To ensure accurate asset valuation and prevent price manipulation, the system is designed to use decentralized oracles, with plans to integrate Chainlink data feeds for reliable pricing.

Dynamic Lending and Borrowing Mechanics

Mutuum Finance uses a utilization-based interest rate model, where borrowing costs adjust dynamically based on the amount of available capital in a pool. Rates are low when liquidity is high to encourage borrowing and increase as utilization rises to attract new deposits. Borrowers can choose between variable rates that fluctuate with the market and stable rates that offer more predictable repayment terms.

To protect the protocol and its lenders, all loans are over-collateralized. Each asset has a defined Loan-to-Value (LTV) limit and a liquidation threshold based on its volatility. For example, stable assets like USDT might have an LTV of 75%, while more volatile tokens would have stricter limits, potentially around 40%.

Fostering Engagement with Community Incentives

Alongside its technical development, Mutuum Finance has focused on building an active community. The project launched a $100,000 giveaway, which will distribute $10,000 in MUTM tokens to ten randomly selected participants. It also runs a 24-hour leaderboard that rewards the top daily contributor with $500 in MUTM, promoting consistent engagement throughout the presale.

With its V1 testnet launch on the horizon, Mutuum Finance is steadily progressing from a fundraising phase to full deployment. The combination of a flexible lending model, robust security features, and strong community incentives has positioned the project for its next major step into the DeFi ecosystem.

Mutuum Finance is distinguishing itself among new presale projects in 2025 by delivering measurable progress, verifiable audits, and a transparent framework for investors. The team is now preparing for a crucial phase of real-world testing. Further along its roadmap, the project plans to expand development to incorporate stablecoin and Layer-2 integrations.