Mutuum Finance (MUTM) is developing a decentralized lending and borrowing ecosystem on the Ethereum network, having raised over $20M in funding to date. The project is building non-custodial lending infrastructure that enables users to supply and borrow digital assets via smart contracts.
Mutuum Finance
Mutuum Finance operates as a decentralized lending and borrowing protocol on Ethereum. Users can deposit supported crypto assets into liquidity pools to potentially earn variable yield, or use those assets as collateral to borrow other tokens. The system follows an overcollateralized model, where borrowing capacity is determined by the value of deposited collateral.
When users supply assets, the protocol mints mtTokens as proof of deposit. These tokens represent the user’s share of the liquidity pool and may accrue variable yield over time, depending on pool utilization. . Borrowers deposit collateral and access liquidity within predefined loan-to-value (LTV) limits, while liquidation mechanisms and stability metrics monitor risk levels.
According to the project, MUTM is the protocol’s utility token with a fixed supply. To date, the project has secured over $20.7 million in funding, with more than 19,000 supporters.
The V1 protocol is live on the Sepolia testnet, allowing users to test lending, borrowing, and staking functions ahead of the planned mainnet launch. According to project data, simulated liquidity on the testnet has reached over $180 million in total value locked (TVL), demonstrating the potential of the protocol.
The team recently introduced Safe-Mode Borrow Presets on the testnet. This feature enables users to choose predefined risk levels—Safe, Balanced, or Aggressive—when borrowing. For example, a user depositing $10,000 worth of ETH as collateral may select the “Safe” preset, which limits borrowing to a lower percentage of the maximum LTV to reduce liquidation risk. The “Balanced” option allows moderate borrowing, while the “Aggressive” preset permits borrowing closer to the maximum LTV, increasing capital efficiency alongside higher exposure to volatility.
Price Discovery and Oracle Infrastructure
Mutuum Finance plans to use decentralized oracle infrastructure to determine fair market values for supported assets. The design anticipates integration with Chainlink data feeds, which provide pricing in USD and native blockchain assets.
The roadmap includes fallback oracles to maintain pricing continuity if a primary source experiences delays. The protocol may also aggregate multiple oracle services to reduce reliance on a single data provider. Where sufficient liquidity exists, time-weighted average price (TWAP) data from decentralized exchanges could serve as an additional reference for valuations. These measures are intended to support accurate collateral pricing and timely liquidations.
From a security standpoint, the MUTM token smart contract has been reviewed by CertiK. The lending and borrowing smart contracts have undergone an independent audit conducted by Halborn.
With more than $20.7 million raised, over 19,000 token supporters, and a live protocol on testnet surpassing $180 million in simulated liquidity, Mutuum Finance continues advancing its lending framework as development progresses toward mainnet deployment.
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