Mutuum Finance Reports New Milestones as Phase 2 Development Accelerates Toward Q4 2025 Testnet

Mutuum Finance (MUTM), an Ethereum-based DeFi project developing a structured decentralized lending protocol, has announced significant progress across its roadmap as the team moves through Phase 2. With more than 18,400 active investors and growing visibility, the project is approaching its next major deliverable: the V1 testnet scheduled for Q4 2025.

The platform is built around two linked lending environments designed to provide predictable and transparent financial activity. Users supplying assets like ETH or USDT receive mtTokens, which increase in value as borrowers repay interest. This mechanism is intended to give lenders a yield directly tied to real protocol usage.

Borrowing dynamics are driven by adjustable interest levels that react to available liquidity. When a pool is filled, borrowing remains cost-efficient; when liquidity tightens, interest rates rise. Loan-to-value rules structure collateral requirements, and liquidation is triggered if collateral value drops too far. Liquidators cover part of the loan and receive a share of the collateral, helping to stabilize the system during high-volatility conditions.

Phase 2 has centered on refining these internal mechanics. The team reports steady progress on contract behavior, interest recalculation updates, collateral logic tuning, and liquidation scenario testing. Interface adjustments have also been completed in preparation for V1 user testing.

Growing Community and Expanding Capital Flow

Participation in Mutuum Finance continues to increase, with total funding reaching $19.250M and more than 18,400 active investors. According to the team, the rise reflects consistent engagement and stable momentum across each roadmap stage.

The presale began in early 2025 at $0.01, and the token now sits at $0.035—a 250% increase as the project nears its testnet phase. Out of a total 4B supply, 1.82B MUTM (45.5%) were allocated to the presale, and more than 815M tokens have already been purchased. Phase 6 allocation has crossed 96%, leaving only a small amount of supply available at the current price.

mtTokens and Protocol Architecture

mtTokens play a central role in the protocol’s design. Users who supply ETH or USDT receive mtTokens that rise in value based on borrower interest repayments, offering a clear and transparent way to track earnings. In later stages, mtTokens will integrate with additional tools as borrowing activity grows. The project’s goal is to build a lending ecosystem where yields mirror the real expansion of the protocol rather than external reward cycles.

The team is also developing a USD-pegged stablecoin backed by borrower interest, which will act as a core asset once V1 is live. Stablecoins provide predictable borrowing values and deepen overall liquidity—key elements for a lending platform.

Layer-2 expansion remains another major roadmap component. Mutuum Finance plans to deploy on multiple L2 networks to reduce gas fees and increase transaction speed, both of which are essential for lending functions like collateral checks, interest updates, and liquidation triggers.

Security Reviews and Roadmap Alignment

Security remains a top priority. Mutuum Finance recently completed a CertiK audit, earning a 90/100 Token Scan score, and Halborn Security is now conducting an in-depth review of the protocol’s smart contracts. The audit covers interest behavior, collateral thresholds, liquidation logic, and core mathematical functions. Halborn is testing edge cases, stress conditions, and interactions between borrowing activity and collateral movement.

A $50,000 bug bounty is live to allow external developers to report vulnerabilities ahead of the testnet release.

Mutuum Finance confirmed via its official X channel that the V1 testnet remains on schedule for Q4 2025. V1 will introduce the complete lending pool, mtTokens, repayment dynamics, liquidation triggers, and the debt engine. ETH and USDT will be supported at launch, and users will be able to monitor collateral levels, borrowing positions, and mtToken performance throughout the testing phase.

Phase 2 development has prepared the code for the transition from internal testing to community access. Final refinements and additional documentation will be released before the testnet becomes available.

Positioning for the Next Stage

With $19.250M in funding, 18,400 active investors, a refined lending architecture, mtToken-driven yield mechanics, a planned stablecoin, Layer-2 expansion, and a Q4 2025 testnet on the horizon, Mutuum Finance is positioning itself as a notable upcoming project within the DeFi sector. Further updates are expected as development moves toward public testing and the next phases of the roadmap.