Mutuum Finance’s DeFi platform navigates both innovation and risk as its $18 million presale approaches its final stages

Mutuum Finance (MUTM), a decentralized finance (DeFi) platform based in Dubai, is moving quickly toward the release of its V1 lending and borrowing protocol as it advances through the second phase of its development plan. The project has become one of the most prominent DeFi ventures of 2025, gaining significant interest from both individual and institutional backers, according to a

.

The platform’s two-pronged lending system—featuring Peer-to-Contract (P2C) pooled markets for assets such as

and alongside Peer-to-Peer (P2P) isolated markets for specialized tokens—has played a major role in its popularity. P2C enables users to add assets to liquidity pools to earn returns, while P2P offers tailored lending agreements for individual borrowers. This blended model leverages smart contracts and over-collateralization to maintain transparency and reduce risks in unpredictable markets, according to a . The platform also features a buy-and-distribute system that shares protocol earnings with stakers, encouraging ongoing participation, as noted in a .

Mutuum has prioritized security and openness throughout its development. The project recently passed a CertiK audit, earning a Token Scan score of 90 out of 100, and introduced a $50,000 bug bounty to attract ethical hackers, according to a

. These steps have increased investor trust, especially as Phase 6 approaches 80% completion and large investors have contributed over $100,000 in a single day, as highlighted in the previous GlobeNewswire release.

The V1 protocol is expected to debut on the Sepolia Testnet in the fourth quarter of 2025, featuring essential elements such as liquidity pools, mtTokens, and an automated liquidator bot for risk management, according to the GlobeNewswire report. Lending and borrowing will initially be available for stable assets like ETH and USDT, with loan-to-value (LTV) ratios capped at 75% to ensure liquidity. For more volatile tokens, LTVs will be set between 35% and 65%, with specific liquidation thresholds to safeguard lenders, as detailed in a

.

The project’s organized roadmap and emphasis on security and scalability have drawn parallels to conventional lending services, while still delivering the efficiency of DeFi, as observed in the GlobeNewswire release.

As the platform gears up for its beta launch and eventual mainnet deployment, investors are watching closely to see how it manages innovation and risk in the competitive DeFi sector, according to the GlobeNewswire update.