Pyth Network has partnered with Morpho and Gauntlet, two development teams specializing in decentralized finance (DeFi), to enhance lending and borrowing on Ethereum and Base.
The partnership’s objective is to provide lending protocols that are more secure and efficient by utilizing Python’s low-latency price data.
Michael Cahill, the co-founder and CEO of Douro Labs, a core contributor to Pyth, stated in a written Q&A with Cointelegraph:
“Pyth Network’s low-latency price data provides DeFi protocols with the most current market prices, significantly reducing the risk of outdated information that can lead to incorrect pricing and transaction execution.”
Morpho Lending Restructuring
Morpho is introducing a lending platform to facilitate the creation of permissionless markets.
“The platform enables entities to pre-approve the launch of bespoke vaults with customized risk management specifications.”
Morpho’s objective is to streamline DeFi yield management for investors and provide DeFi protocols with the flexibility to establish “liquidation loan-to-value (LTV) ratios, price oracles, collateral selection, caps, and more.”
Cahill elaborated on Morpho’s involvement in the partnership:
“Morpho’s Blue implements isolated lending vaults, enabling it to decouple from underlying incumbents such as Aave and Compound. It also builds on this concept by modularizing risk management, separating it from the underlying protocol and enabling curators to parameterize risk for each isolated vault.”
Gauntlet’s Optimization Output
Gauntlet, a creator of yield farming primitives and one of Morpho’s first approved vault operators, will be operating a USD Coin Core MetaMorpho Vault on Morpho.
The objective of Gauntlet is to enhance the accuracy and reliability of price data by incorporating Pyth’s draw method price oracle, which actively acquires data from a source rather than passively receiving it.
In discussing the significance of real-time price data, Cahill stated:
“The availability of real-time, high-frequency price data has driven the recent surge in high-throughput DeFi applications, including perpetual futures and onchain derivatives.”
The influence of Python data streams
Pyth’s data feeds, distinguished by their high-frequency and low-cost updates, can assist in the security and stabilization of the informational feed provided to decentralized applications.
Regarding the implications of data feeds, Cahill described:
“Lending protocols, such as Morpho, are more secure through the use of data that aggregates a large number of primary sources to provide robust and trustworthy price measurements. Such prices can be reliably used for collateral valuation, liquidation triggers and yield settings.”
Pyth is presently supplying price feeds to over 350 DeFi protocols across various blockchains and has a total value of $7 billion locked.
