New DeFi Alliance: Gauntlet Partners with Morpho After Ditching Aave

Gauntlet, a risk management firm within the decentralized finance (DeFi) sector, has announced joining forces with the lending protocol Morpho.

This collaboration comes less than a week after Gauntlet unexpectedly terminated its relationship with Aave.

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

Sidechains in Crypto Explained EASILY (Animated)

SUBSCRIBE

ON YOUTUBE

Gauntlet's co-founder, John Morrow, expressed facing challenges with Aave, including navigating "inconsistent guidelines and unwritten objectives." This led to the dissolution of their partnership despite a recent $1.6 million contract.

The new collaboration introduces Gauntlet's venture into developing its lending products through MorphoBlue.

This innovative platform enables firms to establish their lending and borrowing pools, or "vaults," which departs from traditional lending protocol operations where external firms are engaged for risk management advice.

This differs from Aave's model, which operates under the governance of the AaveDAO, a decentralized autonomous organization.

Morpho's co-founder, Paul Frambot, has openly criticized Aave, accusing it of stifling Morpho's growth through competitive tactics while also positioning MorphoBlue as a formidable competitor to the leading DeFi lending services.

Frambot emphasizes Morpho's commitment to transparent incentives and superior user risk management.

As the DeFi space continues to evolve, the partnership between Gauntlet and Morpho signifies a new chapter in the quest for more autonomous, efficient, and user-centric lending protocols.

Another recent crypto collaboration happened between FinTech company Revolut and Solana's memecoin BONK, aiming to educate users on crypto.