DUBAI, United Arab Emirates, December 14, 2025 (GLOBE NEWSWIRE) — Mutuum Finance (MUTM) continues to move forward in its development cycle as the project reports progress in Phase 2 of the roadmap while total funding has passed the $19 million mark. As an Ethereum-based DeFi crypto focused on lending and borrowing infrastructure, Mutuum Finance is now entering a phase where technical preparation, token distribution, and community growth converge ahead of its planned release from the V1 testnet.
Phase 2 of the roadmap: from design to execution
Phase 2 of the roadmap focuses on building and finalizing the basic architecture of the protocol. During this phase, the Mutuum Finance team worked on the smart contract logic that underpins the lending, borrowing, interest calculation and liquidation processes.
According to project updates, this phase includes the completion of the Liquidity Pool contracts, the mtToken framework, debt accounting systems and the automated Liquidator Bot. These components are designed to work together so that deposits, loans, accrued interest and liquidations can operate without intermediaries.
Phase 2 also covers internal testing, parameter tuning, and alignment between the protocol’s back-end contracts and its front-end interface. As this phase progresses, the project moves from a theoretical design to a working system that can be deployed in a public testing environment.
Pre-sale funding and community expansion
Alongside development progress, Mutuum Finance has seen steady participation in its token distribution. The project has now raised approximately $19.30 million, reflecting continued inflows across multiple phases rather than isolated spikes. More than 18,400 incumbents are currently participating, giving the project a large early adopter base ahead of live protocol testing.
The MUTM token entered the market in early 2025 at an initial price of $0.01. Since then, the token’s price has increased through a structured phase model and now stands at $0.035 in phase 6. This represents a 250% increase from the initial phase, achieved through gradual progression rather than sudden price movements.
Phase 6 has become a focal point for observers tracking the progress of Mutuum Finance. The phase would now be over 98% allocated, leaving only a small portion of the tokens available at the current price level. At the end of each phase, the price of the token moves to the next predefined level, which has helped maintain constant demand as availability tightens.
This allocation stage is often considered a transition point, where participation accelerates as remaining supply becomes limited. The structured nature of the pre-sale means that price increases are directly linked to the progression of the phases rather than external market conditions.
Token supply and distribution structure
Mutuum Finance has defined a total supply of 4 billion MUTM tokens. Of this amount, 45.5%, or 1.82 billion tokens, are allocated to the presale. To date, approximately 820 million tokens have been sold.
This distribution model aims to build a large base of early participants before the protocol becomes operational. By spreading the allocation over several phases, the project avoided concentrating supply in a small number of portfolios during the early stages.
Accessibility also played a role in participation. MUTM tokens can be purchased via card payment, allowing users to register without the need for centralized exchanges or complex on-chain transactions. This approach helped onboard participants who may be new to DeFi environments.
At the heart of the Mutuum Finance protocol are mtTokens, which function as interest-bearing representations of the assets provided. When users deposit assets into the liquidity pool, they receive mtTokens whose redeemable value increases as borrowers repay interest.
This model allows interest to accrue automatically, without requiring manual claims. The value of mtTokens reflects actual borrowing activity rather than inflationary rewards, aligning user returns with protocol usage.
Borrowers interact with the system through secured loans governed by defined risk parameters. Loan-to-Value limits vary based on asset volatility, and liquidation thresholds are set to protect the solvency of the protocol. When a position becomes undercollateralized, the Liquidator Bot is designed to execute partial liquidations in an orderly manner.
Security reviews and tests
Security remains a central element of phase 2 of the roadmap. Mutuum Finance completed a CertiK audit and received a 90/100 Token Scan score. At the same time, Halborn Security is conduct an independent review finalized loan and borrowing contracts.
To further strengthen code quality, the project launched a $50,000 bug bounty program focused on identifying smart contract vulnerabilities. These multi-layered security measures aim to reduce risks before the protocol is exposed to broader testing and possible mainnet use.
Community participation continues to be encouraged through a 24-hour leaderboard system. The top daily contributor receives $500 in MUTM, which has helped maintain consistent activity as Phase 6 progresses.
Preparing the V1 test network
Mutuum Finance has confirmed that its The launch of the V1 protocol is planned on Sepolia Testnet in Q4 2025. This release will introduce Liquidity Pool, mtToken System, Debt Token and Liquidator Bot, with ETH and USDT as initial supported assets.
The V1 testnet marks the first opportunity for users to interact with the protocol in a live environment, but with test assets. It represents the transition from development to functional demonstration, which is a key milestone for infrastructure-focused DeFi projects.
Progress on phase 2 of the roadmap is a prerequisite for this launch. As prime contracts are finalized and audits continue, the project aligns its technical readiness with the testnet schedule.
As a new crypto focused on lending infrastructure, Mutuum Finance enters a competitive segment of the DeFi market. The focus on incremental development, phased token distribution, and multiple security reviews reflects a measured approach rather than rapid deployment.
With phase 6 almost complete and phase 2 of the roadmap moving forward, Mutuum Finance is moving closer to its first public testing phase. The combination of funding levels, holder growth, and allocation tightening made this milestone notable for observers tracking upcoming crypto projects in the lending space.
For more information on Mutuum Finance (MUTM), visit the links below:
Website: https://www.mutuum.com
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