Mutuum Finance is set to revolutionize the decentralized finance landscape with the launch of its new lending and borrowing protocol, scheduled to debut on the Sepolia Testnet in the fourth quarter of 2025. This initiative promises to introduce a suite of innovative features designed to enhance user experience and security in the DeFi space. The source reports that the protocol aims to address key challenges faced by users in the current market.
Introduction to Mutuum Finance Protocol
The initial version of the protocol will incorporate essential functionalities such as:
- liquidity pools
- mtTokens
- debt tokens
- a liquidator bot
Users will be able to utilize ETH and USDT as collateral for lending and borrowing activities, providing flexibility and accessibility for a wide range of participants in the ecosystem.
Risk-Adjusted Loan-to-Value Approach
A key highlight of Mutuum Finance's protocol is its risk-adjusted Loan-to-Value (LTV) approach. This method ensures that the maximum collateral allowed for each asset is determined by its associated risk level, effectively shielding users from the impacts of market volatility. By prioritizing the overall health of the ecosystem, Mutuum Finance aims to create a more stable and secure environment for its users.
The Hyperliquid HYPE network has activated the HIP3 upgrade, enhancing its decentralization and allowing users to create perpetual futures markets without permission. This significant development contrasts with the upcoming launch of Mutuum Finance's lending protocol. For more details, see read more.
