The DeFi risk management company swiftly transitioned to partnering with Morpho shortly after ending its collaboration with Aave, another DeFi lending platform. Gauntlet’s new alliance with Morpho, announced on February 27, involves the creation of lending products on MorphoBlue, a platform enabling firms to establish their own lending and borrowing pools called “vaults.” Unlike Aave, where lending pools are accountable to the AaveDAO, MorphoBlue allows risk managers to independently develop and oversee lending protocols. Gauntlet’s decision to part ways with Aave, as articulated by co-founder John Morrow in a February 21 AaveDAO forum post, was influenced by challenges in navigating inconsistent guidelines and objectives of major stakeholders. The move to Morpho clarifies Gauntlet’s strategic direction following its separation from Aave and aligns with Morpho’s ambitions to compete with industry giants like Aave and Compound in the DeFi lending sector. Despite Aave’s market leadership, Morpho aims to distinguish itself by offering transparent incentives and advanced risk management features through its Blue protocol. Morpho’s total value locked (TVL) trails behind Aave’s, but the partnership signals Morpho’s determination to expand its presence and challenge established players in the DeFi space.
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