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DUBAI, United Arab Emirates, Jan. 30, 2026 (GLOBE NEWSWIRE) -- Mutuum Finance has recently announced the achievement of several technical and community milestones as it moves through its 2026 development roadmap. The project, which focuses on decentralized lending and borrowing, has officially activated its V1 protocol on the Sepolia testnet. This transition from conceptual design to a functional testing environment coincides with the project surpassing 19,000 individual holders and raising over $20.1 million through its phased token distribution.Overview of Mutuum Finance (MUTM) ArchitectureThe core of Mutuum Finance is a decentralized, non-custodial protocol designed to facilitate credit markets on the blockchain. The system utilizes a dual-market framework to serve different user needs within a single ecosystem. This design consists of Peer-to-Contract (P2C) and Peer-to-Peer (P2P) lending models.In the P2C model, users contribute assets like ETH or USDT to shared liquidity pools. These pools allow for immediate borrowing, with interest rates that adjust automatically based on supply and demand.In contrast, the P2P model is designed for direct matching, where lenders and borrowers can define specific terms for more customized loan agreements. All borrowing within the protocol is over-collateralized, meaning users must provide digital assets of higher value than the amount they borrow to ensure system solvency.This safety mechanism is managed through the Loan-to-Value (LTV) ratio, which determines exactly how much a user can borrow against their deposited collateral. A higher LTV allows ...Full story available on Benzinga.com