DeFi Player Gauntlet Shifts to Morpho for Dynamic Lending Pool

Gauntlet’s research firm has just announced its collaboration with Morpho, a lending protocol. This collaboration has been a turning point for Gauntlet as the company is identified for risk management and the creation of a lending vault in the DeFi part.

The move to Morpho, effected by Gauntlet, came after it had already cut ties with AaveDAO, resolving the issue of heterogeneity in the industry. At the same time, it did it to play it safe and not to engage in any platform that does not offer a flexible approach to risk management.

Embracing a New Paradigm in Lending

Morpho, Gauntlet’s associate for loan pools, brings a new vision into play when it comes to vault management of loans. Deploying the framework of Metamorpho, an open protocol, the Gauntlet team is working on the lending vaults that bring single markets together with the pool of multi-asset items. By such means, platform users can use the same token for various purposes, such as boosting asset yield via an unrestricted lending environment.

Nick Cannon, VP of Growth at Gauntlet, highlighted the integration benefits of Gauntlet’s quantitative skills and Metamorpho’s adaptive structure. He added, “Such a collaborative arrangement is a once-in-a-lifetime opportunity to employ the Gauntlet risk management system in real-time market situations.”

Gauntlet’s Departure from Aave

This collaboration follows Gauntlet’s decision to leave its partnership with AaveDAO, which was linked to problems that emerged when navigating the operational issues of the decentralized autonomous organization. Unlike Morpho, which primarily focuses on the DAO’s credit risk management, Gauntlet working alongside Morpho instead of opening up the option of the DAO engaging in a sole or small quantity of risk managers is a completely new trend.

Consequently, in Morpho’s system, rather than having to seek permission from Morpho, it seems possible for entities like Gauntlet to design their vaults and directly manage risks associated with them without paying any amount to Morpho. This determination of rates will allow the developers of DeFi solutions to implement more productive risk strategies, and they will contribute to the decentralized nature of DeFi.

A Focus on Risk Management Innovation

As MetaMorpho Vaults, the credit provision capability gets transformed to a fractional provisioning due to the implementation of the Morpho credit at Gauntlet. In order to secure special risk parameters, including its own fee structure, Gauntlet can choose to contact nodes directly responsible for lending pools, making its risk management process more automatic and instantaneous.

Rather than the centered management through traditional platforms where lending is a kind of voting by the wider community or DAO, this model introduces a new method board with a risk management society that you can buy to take a chance. Consequently, this teamwork with Morpho will result in the rise of risk management, which is prompt and will lead to a new era of the DeFi market.

Along with their Morpho orientation, Gauntlet is playing quite a huge role in the insurance development of the DeFi industry. By combining the analytical abilities of Gauntlet in the quantitative market and the decentralized finance (DeFi) of Morpho with lending facilities and a sophisticated platform, the partnership promises users with secure and reliable repayment alternatives. Additionally, this relocation illustrates an increasing trend in the DeFi space of more decentralized and agile risk control systems as the sector grows and develops.

Read Also: IOTA Foundation Partners with WEF and Global Trade Leaders in Abu Dhabi