Crypto News Today: This Lending Protocol Hits $290M in Testnet Liquidity Ahead of Mainnet

A decentralized lending and borrowing protocol has recorded over $290 million in testnet total value locked on the Sepolia network ahead of its scheduled mainnet launch - a figure that places Mutuum Finance (MUTM) among the more active DeFi deployments currently in pre-launch testing. The milestone arrives as the project advances through the final stages of its development roadmap and prepares for the transition from testnet to a fully live protocol.

What $290M in Testnet Liquidity Actually Means

Testnet liquidity is simulated - users interact with test versions of supported assets rather than real capital. But the scale of participation reflects something real: an active community that has taken the time to understand and engage with the protocol's mechanics before mainnet deployment. Over $290 million in testnet TVL means thousands of test transactions, collateral deposits, borrow positions, and liquidation events have already run through the system. The automated liquidator bot has been tested under realistic load conditions. The Stability Factor calculations have been validated across multiple asset pairings. The interest rate models have been stress-tested against shifting utilization scenarios.

For a protocol approaching its mainnet launch, that level of pre-deployment activity is a meaningful quality signal. It means the system has been exercised at scale before real capital is at risk.

Core Features Running on Sepolia

The V1 protocol currently live on Sepolia supports four assets: ETH, USDT, LINK, and WBTC. Users interacting with the testnet can access the full suite of core features, including liquidity pools where assets can be deposited to earn yield, mtTokens which are minted on deposit and automatically accumulate interest in real time, debt tokens which track borrowed principal and accrued interest continuously,

Safe-Mode Borrow Presets giving users one-click access to risk tiers targeting Stability Factors of 2.0, 1.7, and 1.4, the Stability Factor metric which monitors the ratio between collateral value and outstanding debt, and the automated liquidator bot which continuously scans all open positions and executes liquidations when thresholds are breached. A position alert feature delivering Health Factor notifications via email is completing internal review and is scheduled for release imminently.

The deposit mechanic is worth explaining concretely. When a user supplies USDT into one of the protocol's P2C pools, they receive mtUSDT tokens in return - a 1:1 representation of their deposit. As borrowers draw on that pool and pay interest, the redeemable value of each mtUSDT token increases automatically. A user who deposits $10,000 in USDT into a pool generating an average 8% APY will find their mtUSDT can be redeemed for approximately $10,800 at the end of twelve months, with every increment of that increase accrued passively without manual action.

Presale Progress and Security Record

Mutuum Finance has raised over $20.8 million from more than 19,000 holders across seven presale phases, with the token climbing from $0.01 in Phase 1 to $0.04 in the current Phase 7. The confirmed launch price is $0.06, meaning the current entry point sits 33% below the listing price before open-market demand is introduced. Over 850 million of the 1.82 billion presale tokens have been sold. A $100,000 community giveaway is active alongside a $500 daily leaderboard bonus refreshing every 24 hours.

Two independent security reviews back the protocol ahead of mainnet. Halborn Security - which has previously audited major industry participants including Coinbase and the Solana ecosystem - completed an independent audit of the lending and borrowing smart contracts. CertiK reviewed the MUTM token contract and awarded a 90/100 score. Together, these audits cover both the protocol layer and the token contract, providing dual-layer verification that most pre-launch DeFi protocols do not carry.

The Road to Mainnet

Phase 4 of the roadmap delivers the mainnet launch, exchange listings, and the MUTM token claim process - the transition from presale asset to publicly traded protocol token. Beyond the initial launch, the team has outlined development of an overcollateralized stablecoin, Layer 2 integration targeting reduced transaction costs on rollup networks, and multi-chain expansion beyond Ethereum. Each of these additions creates a new revenue stream that feeds the buy-and-distribute mechanism, increasing the volume of MUTM purchased from the open market and redistributed to stakers as the protocol's user base grows.

The $290 million testnet milestone is not the destination. It is the evidence that the system is ready for the next step.

For more information about Mutuum Finance (MUTM) visit the links below:
Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance

About Mutuum Finance

Mutuum Finance (MUTM) is an Ethereum-based, non-custodial decentralized finance (DeFi) protocol designed for lending and borrowing digital assets without intermediaries.

Contact Information
J. Weir
Contact@mutuum.com

This release was published on openPR.