DeFi cryptocurrency Mutuum Finance has launched its V1 protocol on the Sepolia testnet, introducing the core mechanics of its lending and borrowing system. The staff additionally said that an extra function is scheduled to be rolled out subsequent week as improvement continues.
Mutuum Finance Protocol Improve
In a current assertion revealed on X, the staff confirmed that it’s engaged on a number of upcoming options whereas refining key parts of the codebase, together with optimizations to the Stability Issue. Based on the replace, a brand new protocol function is predicted to be launched within the coming week.
The mission has reported greater than $20.6 million raised to this point, with over 19,000 holders of its MUTM token, at present priced at $0.04. In the identical replace, the staff famous that the Sepolia testnet model of its lending and borrowing protocol has surpassed $90 million in testnet complete worth locked (TVL), reflecting simulated liquidity exercise throughout beta testing.
Lending and Borrowing with Mutuum Finance
Within the present beta model, customers can work together with the protocol’s core performance. The interface shows a protocol overview together with complete liquidity, obtainable liquidity, and complete variable debt. 4 property are at present supported for minting and interplay on testnet: ETH, USDT, LINK, and WBTC. The portfolio part offers knowledge on web value, web APY, Stability Issue, and complete equipped and borrowed balances, with mtTokens additionally built-in into the present model of the platform.
When customers provide property to the platform, they obtain corresponding mtTokens as proof of deposit. For instance, supplying WBTC leads to the issuance of mtWBTC. These tokens accrue worth over time based mostly on the relevant APY, which is set by pool utilization.
By depositing $10,000 value of USDT into the protocol, customers obtain mtUSDT in return. If the typical annual share yield (APY) is round 4–5% over a one-year interval, the place might generate roughly $400 to $500 in passive revenue, relying on pool utilization and borrowing demand. As well as, customers can stake their mtTokens inside the security module, the place eligible contributors obtain dividends denominated in MUTM tokens.
On the borrowing facet, collateral is required to safe loans and shield the protocol towards default danger. Fairly than promoting property, customers can put up them as collateral and borrow towards their worth. For instance, an investor holding $1,000 value of ETH who doesn’t want to liquidate the place can deposit that ETH as collateral and borrow USDT. The borrowed stablecoins can then be used for bills or deployed into different investments, whereas the person retains publicity to potential upside in ETH. As soon as the borrowed quantity and accrued curiosity are repaid, the total collateral might be withdrawn.
Audited Protocol
Mutuum Finance has undergone a safety audit of its lending and borrowing protocol carried out by Halborn, a blockchain safety agency that has additionally carried out audits for main initiatives resembling Solana. As well as, the MUTM token sensible contract was reviewed by CertiK, receiving a Token Scan rating of 90 out of 100.
In partnership with CertiK, Mutuum Finance has established a bug bounty program with a reward pool of as much as $50,000, geared toward figuring out potential vulnerabilities and strengthening protocol safety.
The entire provide of MUTM is capped at 4 billion tokens. A portion of this allocation is designated for incentives, together with giveaways, leaderboard bonuses, and different neighborhood reward packages.
Mutuum Finance continues to advance improvement of its lending and borrowing protocol as testing progresses on the Sepolia community. With further options scheduled for rollout and safety opinions accomplished, the mission stays centered on refining its infrastructure forward of full deployment.