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MorphoUnderstanding Morpho Vaults: Intro & Simplifying Isolated Markets
Morpho Vaults combines the best of isolated markets and multi-asset lending pools to create a better way to lend. In time, we believe Morpho Vaults will become the default lending solution. Today, we are introducing a four-part series explaining why, starting with Part One: Intro to the Morpho Approach & Simplifying Isolated Markets.The Morpho ApproachThere are two main approaches to structuring lending markets in decentralized finance: lending pools and isolated markets. The former excels in...
MorphoAligning Around MORPHO — The Only Asset For Morpho
TL;DRMorpho will have only one asset—the MORPHO token. This single-asset approach ensures complete alignment between the network of contributing entities and the Morpho DAO (MORPHO token holders). To clarify this alignment, Morpho Labs is becoming a wholly-owned subsidiary of the Morpho Association to eliminate any perceived conflicts with equity value and ensure that token holders and these contributing entities share the same incentive. As the Morpho DAO explores introducing protocol fees t...
MorphoUnderstanding Morpho Vaults: Enabling Diverse Risk Profile
Morpho Vaults (formerly known as MetaMorpho Vaults) combines the best of isolated markets and multi-asset lending pools to create a better way to lend. In time, we believe Morpho Vaults will become the default lending solution. Last week, we introduced the Understanding Morpho Vaults article series with Part One: Intro to the Morpho Approach & Simplifying Isolated Markets. Today, we share Part Two: Enabling Diverse Risk Profiles to explain how, unlike the traditional one-size-fits-all approac...
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MorphoUnderstanding Morpho Vaults: Intro & Simplifying Isolated Markets
Morpho Vaults combines the best of isolated markets and multi-asset lending pools to create a better way to lend. In time, we believe Morpho Vaults will become the default lending solution. Today, we are introducing a four-part series explaining why, starting with Part One: Intro to the Morpho Approach & Simplifying Isolated Markets.The Morpho ApproachThere are two main approaches to structuring lending markets in decentralized finance: lending pools and isolated markets. The former excels in...
MorphoAligning Around MORPHO — The Only Asset For Morpho
TL;DRMorpho will have only one asset—the MORPHO token. This single-asset approach ensures complete alignment between the network of contributing entities and the Morpho DAO (MORPHO token holders). To clarify this alignment, Morpho Labs is becoming a wholly-owned subsidiary of the Morpho Association to eliminate any perceived conflicts with equity value and ensure that token holders and these contributing entities share the same incentive. As the Morpho DAO explores introducing protocol fees t...
MorphoUnderstanding Morpho Vaults: Enabling Diverse Risk Profile
Morpho Vaults (formerly known as MetaMorpho Vaults) combines the best of isolated markets and multi-asset lending pools to create a better way to lend. In time, we believe Morpho Vaults will become the default lending solution. Last week, we introduced the Understanding Morpho Vaults article series with Part One: Intro to the Morpho Approach & Simplifying Isolated Markets. Today, we share Part Two: Enabling Diverse Risk Profiles to explain how, unlike the traditional one-size-fits-all approac...
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We are thrilled to announce that Gauntlet, DeFi’s leading risk management firm, is joining Morpho.
Having worked with all the largest DeFi protocols, Gauntlet brings a wealth of capabilities to Morpho. Gauntlet will use these to curate various lending vaults on top of Morpho Blue using MetaMorpho.
Morpho Blue takes a fundamentally different approach to lending by externalizing risk management. Morpho Blue creates an open marketplace for risk management, enables diverse risk profiles, and establishes clear alignment between risk experts, users, and the protocol.
The Morpho approach is catalyzing a paradigm shift within DeFi lending, and Gauntlet joining Morpho further accelerates the transition.
Gauntlet is a DeFi-native quantitative research firm specializing in risk management with $9 Billion in client assets protected. They use battle-tested techniques from the algorithmic trading industry to help protocols manage risk.
Gauntlet will use their expertise to curate a series of MetaMorpho vaults on top of Morpho Blue and contribute the sophistication of the Morpho Ecosystem. The lending vaults will give users a simple and optimal way to earn yield on their assets.
Gauntlet works with an advanced team of quants used to trade in milliseconds and has always looked for faster paths to proactively manage risk and capture scalable growth opportunities. Morpho’s infrastructure presents the best option for Gauntlet and their capabilities.
Monolithic designs enshrine risk management into lending platforms. To scale, these platforms must list more and more collateral assets. However, the risk associated with each collateral is shared across the entire protocol, amplifying the overall risk exposure for users with each new addition.
On the one hand, a monolithic platform needs to enable as many use cases as possible by listing various collateral. On the other hand, the more collateral listings there are, the higher the overall risk borne by the protocol and users. This tension between growth and risk management makes it difficult to scale such platforms safely.
Morpho Blue steps away from the one-size-fits-all approach and removes the trade-off between growth and risk by externalizing risk management from the protocol. The separation creates an open marketplace for risk management, granting users the freedom to adopt or create a diverse set of risk profiles. More specifically, risk experts like Gauntlet can design and curate various lending vaults, reporting, and other products direct to end-users.
Importantly, the Morpho approach results in clearly aligned incentives between risk experts, users, and the protocol:
Risk experts provide value-add products such as automated lending vaults that do risk management for users.
Performance fees effectively align incentives among vault curators and depositors.
Products/services built by risk experts create a sophisticated risk-managed ecosystem that can be trusted with greater liquidity.
Gauntlet joins a cohort of exceptional risk experts - Steakhouse Financial, Block Analitica, B.Protocol, and RE7 Labs - who are already curating vaults on top of Morpho Blue.
Gauntlet’s capabilities will help scale the set of user-friendly lending vaults and grow liquidity on a common base layer that is Morpho Blue.
Follow Morpho to keep up to date on the launch of Gauntlet’s first vaults.
We are thrilled to announce that Gauntlet, DeFi’s leading risk management firm, is joining Morpho.
Having worked with all the largest DeFi protocols, Gauntlet brings a wealth of capabilities to Morpho. Gauntlet will use these to curate various lending vaults on top of Morpho Blue using MetaMorpho.
Morpho Blue takes a fundamentally different approach to lending by externalizing risk management. Morpho Blue creates an open marketplace for risk management, enables diverse risk profiles, and establishes clear alignment between risk experts, users, and the protocol.
The Morpho approach is catalyzing a paradigm shift within DeFi lending, and Gauntlet joining Morpho further accelerates the transition.
Gauntlet is a DeFi-native quantitative research firm specializing in risk management with $9 Billion in client assets protected. They use battle-tested techniques from the algorithmic trading industry to help protocols manage risk.
Gauntlet will use their expertise to curate a series of MetaMorpho vaults on top of Morpho Blue and contribute the sophistication of the Morpho Ecosystem. The lending vaults will give users a simple and optimal way to earn yield on their assets.
Gauntlet works with an advanced team of quants used to trade in milliseconds and has always looked for faster paths to proactively manage risk and capture scalable growth opportunities. Morpho’s infrastructure presents the best option for Gauntlet and their capabilities.
Monolithic designs enshrine risk management into lending platforms. To scale, these platforms must list more and more collateral assets. However, the risk associated with each collateral is shared across the entire protocol, amplifying the overall risk exposure for users with each new addition.
On the one hand, a monolithic platform needs to enable as many use cases as possible by listing various collateral. On the other hand, the more collateral listings there are, the higher the overall risk borne by the protocol and users. This tension between growth and risk management makes it difficult to scale such platforms safely.
Morpho Blue steps away from the one-size-fits-all approach and removes the trade-off between growth and risk by externalizing risk management from the protocol. The separation creates an open marketplace for risk management, granting users the freedom to adopt or create a diverse set of risk profiles. More specifically, risk experts like Gauntlet can design and curate various lending vaults, reporting, and other products direct to end-users.
Importantly, the Morpho approach results in clearly aligned incentives between risk experts, users, and the protocol:
Risk experts provide value-add products such as automated lending vaults that do risk management for users.
Performance fees effectively align incentives among vault curators and depositors.
Products/services built by risk experts create a sophisticated risk-managed ecosystem that can be trusted with greater liquidity.
Gauntlet joins a cohort of exceptional risk experts - Steakhouse Financial, Block Analitica, B.Protocol, and RE7 Labs - who are already curating vaults on top of Morpho Blue.
Gauntlet’s capabilities will help scale the set of user-friendly lending vaults and grow liquidity on a common base layer that is Morpho Blue.
Follow Morpho to keep up to date on the launch of Gauntlet’s first vaults.
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