Mutuum Finance sets stage for major Q4 updates with Sepolia V1 launch, $17.6m raised

Mutuum Finance is entering a key phase in its roadmap, preparing to launch its V1 lending and borrowing protocol on the Sepolia testnet as its $17.6m presale nears completion.

Decentralized finance is entering another pivotal stage, with several projects preparing to move from early funding to full-scale deployment. Among them, Mutuum Finance (MUTM) has started to capture growing attention as it approaches a crucial development milestone in the final quarter of 2025.

The project is preparing to launch its V1 lending and borrowing protocol on the Sepolia testnet, marking its transition from crypto presale preparation to live testing. This next phase will serve as a key indicator of how the platform’s technology performs in a real DeFi environment, a moment many investors see as a defining step toward Mutuum Finance’s broader mainnet rollout. Early signs of progress suggest the project is maintaining a rare balance between transparency, delivery, and community growth ahead of its debut.

Presale progress and investor growth

The presale is currently in Phase 6, with 70% of tokens already allocated at $0.035 per MUTM, ahead of the planned $0.06 launch price. This structured model has proven highly effective in driving participation and transparency throughout each stage. Every phase offers a fixed token supply and price, and once one stage sells out, the next opens at a higher valuation. This creates a clear and predictable progression that rewards early supporters while maintaining fairness for later participants.

Since the start of the sale in Phase 1, when MUTM was priced at just $0.01, the token’s value has already increased by 250%, underscoring both the strength of market demand and the effectiveness of Mutuum Finance’s staged approach. Investors who entered early have already seen substantial paper gains, while new buyers are still positioning themselves ahead of the upcoming listing price, which remains attractively below projected market levels.

To date, over 770 million tokens have been sold, contributing to a total raise of $17.6 million. Participation has continued to expand globally, with more than 17,300 investors now part of the growing community. The consistent progress across each stage demonstrates confidence not just in the presale’s structure but in the underlying fundamentals of the project itself.

Protocol architecture, X statement, and core design

According to Mutuum Finance’s official X announcement, the DeFi crypto project is entering its most critical development phase. The team confirmed that the V1 protocol will launch on the Sepolia testnet in Q4 2025, featuring essential components such as a Liquidity Pool, mtToken, Debt Token, and Liquidator Bot. The first supported assets, ETH and USDT, will serve as the foundation for lending, borrowing, and collateral operations.

The system is built on a dual-market model. In the Peer-to-Contract (P2C) market, users deposit assets into shared liquidity pools that automatically generate yield as borrowers draw from them. For tokens that require customized terms or are less liquid, the Peer-to-Peer (P2P) market connects lenders and borrowers directly, allowing them to negotiate individual loan parameters.

Depositors receive mtTokens, which function as interest-bearing receipts representing their share of the pool. These tokens can later be redeemed for the original asset plus any accumulated yield.

To ensure long-term value alignment, Mutuum Finance operates a buy-and-distribute model. A portion of the protocol’s revenue from lending fees is used to buy MUTM tokens on the open market and redistribute them to mtToken stakers in the safety module. This approach ties platform success directly to token demand and incentivizes long-term participation.

Maintaining accurate asset pricing is essential for any lending protocol, and Mutuum Finance achieves this through decentralized oracles. The design anticipates using Chainlink data feeds to deliver reliable pricing information across multiple blockchains. Additional fallback and aggregated oracle feeds will provide redundancy, while time-weighted average data from decentralized exchanges will help prevent price manipulation and ensure fair valuations during liquidations.

How borrow rates, LTV, and APY function in the system

Mutuum Finance employs a utilization-based interest-rate model that dynamically adjusts according to available liquidity. When capital is plentiful in the pool, borrow rates remain comparatively low to encourage users to take loans. As utilization rise, meaning a larger share of the available liquidity is borrowed, the interest rate increases, encouraging repayments and attracting new deposits seeking higher yields.

Borrowers can also select between variable and stable rate options. Variable rates fluctuate based on real-time market utilization, while stable rates provide predictable repayment terms at slightly higher starting rates. These stable rates may be rebalanced under certain conditions, for instance, if the current supply rate drops below 90% of what it would be in a fully variable model, to maintain fairness and protect liquidity.

The system enforces over-collateralization to safeguard lenders and the protocol itself. Each asset supported by Mutuum Finance has defined Loan-to-Value (LTV) limits and liquidation thresholds that reflect its volatility. For example, lower-volatility assets like ETH or USDT may offer LTV ratios of up to 75%, while more volatile tokens would have stricter caps around 40%.

Depositors benefit through variable annual percentage yields (APYs) that reflect pool activity and utilization. As borrowing demand rises, APYs adjust upward to reward liquidity providers, ensuring that incentives remain balanced across both lending and borrowing sides.

$100K giveaway and daily leaderboard

Beyond technical development, Mutuum Finance has built a community-driven presale experience. Its 24-hour leaderboard ranks contributors by their daily deposits, rewarding the top buyer with $500 worth of MUTM every day. The leaderboard resets at 00:00 UTC, promoting consistent engagement and a transparent reward cycle.

Additionally, the team launched a $100,000 giveaway, distributing $10,000 in MUTM to each of ten randomly selected participants. This initiative not only rewards early supporters but also reinforces Mutuum Finance’s reputation for fairness and inclusivity within its ecosystem.

Together, these programs have strengthened investor engagement while keeping presale activity visible and verifiable, features that are often lacking in early-stage DeFi projects.

Final outlook

With the Sepolia testnet launch of V1 on the horizon and funding surpassing $17.6 million, Mutuum Finance (MUTM) is steadily moving toward full functionality. Its combination of a dual lending model, oracle-based security measures, flexible interest-rate system, and strong community incentives illustrates a well-rounded approach to DeFi crypto innovation.

The coming months will be crucial as the team prepares for real-world testing and expands development into stablecoin and Layer-2 integrations later in its roadmap. For now, Mutuum Finance stands as one of the few new crypto presale-stage projects of 2025 delivering measurable progress, verifiable audits, and a transparent framework that investors can monitor in real time.

To learn more about Mutuum Finance, visit the official website and its socials.