New cryptocurrency Mutuum Finance advances decentralized lending on Ethereum network

Mutuum Finance raises more than $20.6m as it builds a non-custodial lending protocol on Ethereum.

Mutuum Finance (MUTM), a new cryptocurrency project building decentralized lending infrastructure on Ethereum, continues expanding its protocol development as fundraising surpasses $20.6 million. The non-custodial platform is designed to allow users to lend and borrow digital assets directly through smart contracts, without relying on centralized intermediaries.

The MUTM token is currently priced at $0.04, with more than 19,000 holders participating in the ongoing token distribution. According to project data, the protocol’s Sepolia testnet environment has now exceeded $150 million in simulated total value locked (TVL), reflecting user engagement during the testing phase.

Mutuum Finance V1 protocol live on testnet

Mutuum Finance’s V1 protocol is currently live on the Sepolia testnet, where users can simulate lending and borrowing by supplying supported assets to liquidity pools for yield or locking collateral to access other tokens. The system executes these functions through smart contracts with predefined risk parameters, allowing users to interact directly with on-chain lending markets in a test environment.

Safe-mode borrow presets introduced

The team announced the release of Safe-Mode Borrow Presets. The feature introduces one-click borrowing options aligned with predefined Stability Factor targets labeled Safe, Balanced, and Aggressive. The preset system adjusts borrowing capacity automatically based on the selected risk profile.

The team also shared a short demonstration video illustrating how the feature operates within the interface. According to the update, additional releases and protocol improvements are planned in the coming period.

In the current version of the protocol, users can mint testnet assets such as ETH, USDT, LINK, and WBTC. After minting, these assets can be supplied into the platform to participate in lending or borrowing activity, and they can also be used within the staking module available in the test environment.

When a user deposits an asset such as USDT, the protocol issues a corresponding mtToken, for example, mtUSDT, representing proof of deposit on a 1:1 basis. These mtTokens reflect the user’s position in the liquidity pool. By staking mtTokens, users become eligible to receive MUTM tokens distributed as part of the protocol’s dividend model.

The current release also includes debt tokens, which are minted when a user borrows and track the outstanding principal along with accrued interest. An automated liquidator bot monitors collateral positions and initiates liquidation if required thresholds are breached. In addition, a stability factor metric provides a real-time indicator of how well-collateralized a borrowing position is relative to protocol requirements.

Before the V1 protocol launch, the team announced that the Halborn security audit had been completed. The team stated, “HalbornSecurity has completed the independent audit of Mutuum Finance’s V1 lending & borrowing protocol.”

With fundraising exceeding $20.6 million and the protocol now live on testnet, Mutuum Finance continues to expand its decentralized lending infrastructure on Ethereum. Ongoing feature releases, including risk-based borrowing presets, indicate continued development as the project progresses through its roadmap toward a planned mainnet launch.