Pyth Network, a company that provides real-time market data for blockchain applications, has joined forces with decentralized finance (DeFi) focused development teams Morpho and Gauntlet to enhance lending and borrowing experiences on Ethereum and Base.
The partnership is aimed at offering more efficient and secure lending protocols by utilizing Pyth’s low-latency price data. According to Michael Cahill, the co-founder and CEO of Douro Labs, a key contributor to Pyth, the collaboration is set to bring significant improvements to the lending platform.
Morpho is set to introduce a lending platform that supports permissionless market creation. This platform will enable entity pre-approval to create customized vaults with specific risk management criteria. The goal is to simplify DeFi yield management for investors and provide flexibility to DeFi protocols in setting liquidation loan-to-value (LTV) ratios, price oracles, collateral selection, caps, and more.
Gauntlet, a creator of yield farming primitives and one of Morpho’s first approved vault operators, will operate a USD Coin (USDC) Core MetaMorpho Vault on Morpho. Their aim is to enhance price data accuracy and reliability by integrating Pyth’s pull method price oracle, which actively acquires data from a source instead of passively receiving it.
Cahill emphasized the importance of real-time price data and how it can significantly impact the lending and borrowing experience. Pyth’s data feeds, known for their low-cost and high-frequency updates, can help secure and stabilize the informational feed provided to decentralized applications.
Currently, Pyth has $7 billion in total value locked and provides price feeds to over 350 DeFi protocols across various blockchains. This partnership is set to bring about significant improvements in the DeFi lending and borrowing space.