Pyth Network, a leading provider of real-time market data for blockchain applications, has joined forces with decentralized finance (DeFi) focused teams Morpho and Gauntlet in a collaborative effort to enhance lending and borrowing experiences on Ethereum and Base.
Through this partnership, the goal is to create more efficient and secure lending protocols utilizing Pyth’s low-latency price data.
In a recent interview with Cointelegraph, Michael Cahill, the co-founder and CEO of Douro Labs and a key contributor to Pyth, emphasized the significance of this collaboration.
Morpho, in particular, is introducing a groundbreaking lending platform to support the creation of permissionless markets. This platform will streamline the process of entity pre-approval, enabling the launch of customized vaults with tailored risk management specifications. The overarching objective of Morpho is to simplify DeFi yield management for investors while providing DeFi protocols the flexibility to set various parameters such as liquidation loan-to-value (LTV) ratios, price oracles, collateral selection, caps, and more.
Regarding Morpho’s role in this partnership, Cahill elaborated on the innovative contributions they are bringing to the table.
Gauntlet, known for its expertise in yield farming primitives, has been approved as one of Morpho’s initial vault operators and will manage a USD Coin (USDC) Core MetaMorpho Vault on the platform. By integrating Pyth’s pull method price oracle, Gauntlet aims to enhance price data accuracy and reliability through active data acquisition from sources.
Cahill underscored the importance of real-time price data in today’s fast-paced market environment.
Pyth’s data feeds, known for their cost-effectiveness and high-frequency updates, play a vital role in securing and stabilizing the flow of information to decentralized applications.
Pyth currently boasts $7 billion in total value locked and provides price feeds to over 350 DeFi protocols spanning various blockchains.