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DUBAI, United Arab Emirates, March 16, 2026 (GLOBE NEWSWIRE) -- Mutuum Finance is a lending and borrowing protocol currently operating on the Ethereum Sepolia testnet. According to project information, testnet liquidity has surpassed $250 million in total value locked (TVL) as development of the V1 protocol continues. Alongside this progress, the project reports over $20.8 million raised and more than 19,000 holders participating in the ecosystem.
Mutuum Finance (MUTM) has continued sharing product updates as development of the protocol advances. In a recent protocol update, the team stated it has been working on position alerts, which will notify users through email, Telegram, or Discord when their Stability Factor changes or falls below a defined safety threshold. The team also noted that the next feature update has already been finalized and is currently being reviewed through an internal audit before it is released.
Protocol Update and Stability Factor
The new alert feature is closely tied to the protocol’s collateral monitoring system. In decentralized lending systems, users deposit crypto assets as collateral and borrow against them. The Stability Factor is the metric used to track the safety of a borrowing position by measuring the relationship between collateral value and the borrowed amount.
When collateral remains significantly above the required threshold, the position is considered more stable. If collateral value decreases or the borrowed amount becomes less safely backed, the Stability Factor declines. When the metric drops too far, the position approaches liquidation conditions.
The alert feature is designed to give users clearer visibility into this risk. Instead of manually monitoring their positions, users can receive notifications and respond by adding collateral or reducing debt if necessary.
Another recent addition is the one-click borrow preset, a borrowing feature intended to simplify how positions are opened. Rather than manually adjusting settings, users can select from predefined borrowing profiles that target a specific Stability Factor.
The feature includes three presets:
- Safe: targets a Stability Factor of 2.0 or higher
- Balanced: targets a Stability Factor of around 1.7
- Aggressive: targets a Stability Factor of around 1.4
These presets allow users to select a borrowing structure based on their preferred risk level. A higher Stability Factor provides a greater margin of safety before liquidation becomes a risk, while a lower Stability Factor allows borrowing closer to the protocol’s maximum permitted limit. By turning the configuration process into preset options, Mutuum Finance simplifies the borrowing flow and reduces manual adjustments.
Core Features in V1
Mutuum Finance V1 includes the core components required for an on-chain lending and borrowing system. Liquidity pools allow users to deposit supported assets into the protocol, making those funds available for borrowers while depositors earn yield generated from borrower interest. Collateralized borrowing enables users to supply one asset as collateral and borrow another without needing to sell their original holdings.
When assets are deposited, the protocol issues mtTokens, which represent the user’s share of the liquidity pool and track the yield accumulated over time. Borrowed balances are tracked through built-in debt accounting, allowing users to monitor their positions and accrued interest directly within the protocol. Risk controls operate alongside the Stability Factor metric to monitor collateral levels and maintain position safety as market conditions change.
Testnet Activity, Token Metrics, and Audits
Mutuum Finance reports that testnet liquidity has surpassed $250 million in TVL. While this represents activity in a development environment rather than mainnet capital, it reflects significant usage of the protocol’s testing framework during the build phase.
The protocol’s native asset is the MUTM token, currently priced at $0.04. According to project data, the ecosystem includes over 19,000 holders and has raised more than $20.8 million.
The project also states that the MUTM token contract underwent a CertiK audit, receiving a 90/100 token scan score, while the protocol’s lending and borrowing smart contracts were reviewed through a Halborn security audit.
Long-Term Development Plans
The roadmap outlined by Mutuum Finance includes plans to introduce a native stablecoin and expand the protocol across multiple blockchain networks.
A native stablecoin would extend the protocol’s product offering beyond lending and borrowing by introducing a stable asset tied to the ecosystem’s collateral framework. Meanwhile, multichain expansion would allow the protocol to operate across additional blockchain networks, potentially increasing liquidity access and broadening the user base.
Mutuum Finance continues to release protocol updates while expanding its development roadmap. As new features are deployed and the V1 platform evolves, the team remains focused on refining the lending system and growing the protocol’s ecosystem.
For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance
Markets Insider and Business Insider Editorial Teams were not involved in the creation of this post.
