Pyth Network, a provider of real-time market data for blockchain applications, has…
Pyth Network, a real-time market data provider for blockchain applications, has partnered with decentralized finance (DeFi)-focused development teams Morpho and Gauntlet to improve lending and borrowing experiences on Ethereum and Base .
The partnership aims to offer more efficient and secure lending protocols using low-latency Pyth price data.
In a written Q&A with Cointelegraph, Michael Cahill, co-founder and CEO of Douro Labs, one of Pyth’s largest shareholders, said the following:
“The Pyth network’s low-latency price data provides DeFi protocols with the latest current market prices, significantly reducing the risk of outdated information that can lead to incorrect pricing and trade execution.”
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Morpho loan reform
Morpho offers a lending platform to support permissionless marketplace creation.
The platform makes it easy to obtain pre-approval for an entity to “launch custom vaults” with custom risk management specifications.
Morpho aims to simplify DeFi yield management for investors and give DeFi protocols the flexibility to set “loan to liquidation value (LTV) ratios, price indices, collateral choice, caps and more” .
On Morpho’s contribution to the partnership, Cahill explained:
“Morpho’s Blue implements isolated loan vaults, which allows it to dissociate itself from incumbents like Aave and Compound. It also builds on this concept by standardizing risk management, separating it from the underlying protocol, and allowing custodians to set risk parameters for each isolated vault.
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Improved performance in Gauntlet
Gauntlet, creator of production farming alternatives and one of the first Morpho-certified vault operators, will manage the Core MetaMorpho Vault USD Coin (USDC) on Morpho.
Gauntlet aims to improve the accuracy and reliability of price data by integrating the price oracle with Pyth’s drag method, which actively obtains data from the source rather than passively receiving it.
Speaking about the importance of real-time price data, Cahill said:
“The availability of high-frequency, real-time price data has led to the recent increase in high-throughput DeFi applications, including perpetual futures and on-chain derivatives.”
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Impact of Python Data Flows
Featuring low-cost, high-frequency updates, Pyth data feeds can help secure and stabilize the flow of information delivered to decentralized applications.
On the implications of data feeding, Cahill explained:
“Lending protocols, such as Morpho, are made more secure through the use of data that combines a large number of primary sources to provide robust and reliable pricing metrics. These prices can be reliably used to evaluate collateral, liquidation triggers and return metrics.
Pyth currently has a total value locked of $7 billion and provides price feeds for over 350 DeFi protocols on various blockchains.
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