Gauntlet, a DeFi risk management company, has joined forces with Morpho, a DeFi lending platform, following its recent departure from Aave.
This collaboration, unveiled on February 27, entails Gauntlet developing its lending solutions on MorphoBlue, an innovative protocol enabling firms to establish custom lending and borrowing pools known as “vaults.”
Unlike conventional setups where lending platforms rely on external firms like Gauntlet for risk management, MorphoBlue empowers risk managers to independently build and oversee lending protocols.
Gauntlet will manage its MorphoBlue pools using a new feature called MetaMorpho, which allows “risk curators” (like Gauntlet) to create pools, manage their risk parameters, and earn associated fees.
Morpho and Aave differ in their approaches to borrowing and lending, particularly regarding governance. AaveDAO oversees lending pools, but Gauntlet parted ways due to challenges with unclear guidelines and stakeholder objectives.
Despite a recent $1.6 million contract, Gauntlet’s move to partner with Morpho clarifies its direction following the split from Aave.
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