Pyth Network Collaborates with Morpho and Gauntlet to Enhance DeFi Lending and Borrowing
Summary:
Pyth Network, a real-time market data provider for blockchain applications, collaborates with DeFi development teams Morpho and Gauntlet to enhance lending and borrowing operations on Ethereum and Base platforms. Morpho is launching a lending platform to simplify DeFi yield management, while Gauntlet will manage a USD Coin Core MetaMorpho Vault on Morpho, using Pyth’s active data gathering price oracle for better price accuracy. Pyth's low-cost, high-frequency data feed updates aim to secure and stabilize information supplied to decentralized applications. Pyth currently manages $7 billion in total locked value, delivering price feeds to more than 350 DeFi protocols across various blockchains.
Pyth Network, a real-time market data provider for blockchain applications, has joined forces with decentralized finance (DeFi) development teams Morpho and Gauntlet to enhance lending and borrowing practices on Ethereum and Base platforms. The collaboration seeks to introduce more secure and efficient lending protocols using Pyth's high-speed price information. Michael Cahill, co-founder and CEO of Douro Labs, and a major contributor to Pyth, said in a Q&A session with Cointelegraph, that using up-to-the-minute price data from Pyth reduces the risks associated with out-of-date information, leading to more precise pricing and transaction execution.
Morpho is launching a lending platform design to promote unregulated market creation. The platform enables entities to get pre-approved to establish customized vaults with specific risk-management parameters. Morpho’s objective is to make DeFi yield management less complicated for investors and to offer DeFi protocols more flexibility to define liquidation loan-to-value ratios, price oracles, collateral selection, caps, and more.
Morpho's Blue introduces independent lending vaults, allowing it to separate from underlying establishments like Aave and Compound. It goes a step further by segmenting risk management, detaching it from the underlying protocol, and letting curators set risk parameters for each distinct vault.
Gauntlet, a yield farming primitives developer and one of Morpho's initial approved vault operators, will manage a USD Coin (USDC) Core MetaMorpho Vault on Morpho. Gauntlet integrates Pyth's pull method price oracle, which gathers data actively instead of a passive reception, to enhance the accuracy and reliability of price data.
Michael Cahill highlighted the relevance of instantaneous price data. He said that the availability of high-frequency, real-time price data has triggered the growth of high-volume DeFi applications such as perpetual futures and on-chain derivatives.
Pyth data feeds’ low-cost, high-frequency updates are designed to secure and stabilize information distributed to decentralized applications. Michael Cahill emphasized that lending protocols, like Morpho, increase their security by using data that consolidates numerous primary sources, delivering robust and reliable price measurements, which can be used confidently for collateral valuation, liquidation triggers, and yield settings.
Currently, Pyth has a total of $7 billion locked in value and delivers price feeds to over 350 DeFi protocols across multiple blockchains.
Published At
6/21/2024 3:00:00 PM
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