Paiz leverages DeFi loan refinancing with Morpho, a Gauntlet partnership
Pit Network, a provider of real-time market data for blockchain applications, has partnered with decentralized finance (DeFi)-centric development teams Morpho and Gauntlet to improve lending and lending experiences on Ethereum and Base.
The partnership aims to provide more efficient and reliable lending protocols using Paiz's low-latency pricing information.
In a Q&A with Cointelegraph, Doro Labs founder and CEO Michael Cahill, chief contributor to Paige, said:
“Pyth Network's low-latency price information provides DeFi protocols with the most up-to-date market prices, greatly reducing the risk of outdated information leading to incorrect pricing and transaction execution.”
Related: Pyth Network Launches Real-Time Market Data on Hedera
Morpho loan modification
Morpho is introducing a lending platform to support unlicensed market innovation.
The platform facilitates entity approval to “launch anonymous vaults” using custom risk management specifications.
Morpho aims to simplify DeFi product management for investors and provide flexibility to DeFi protocols by setting “liquidity loan-to-value (LTV) ratios, price negotiations, collateral selection, caps and more”.
On the topic of Morpho's contribution to collaboration, Cahill explained:
“Morpho Blue implements credit warehouses, allowing it to break away from existing incumbents such as Ave and Compound. It also builds on this concept by streamlining risk management, separating it from the core protocol and allowing regulators to determine risk for each of the isolated treasuries.
Related: DeFi Devs Get Real-Time Bitcoin ETF Data on Pyth Network
Gauntlet product optimization
Gauntlet, creator of Crop Primitives and one of Morpho's first accredited operators, operates the USD Coin (USDC) Core MetaMorpho Vault on Morpho.
Gauntlet aims to improve the accuracy and reliability of price information by integrating Pyth's Puth method Price Oracle, which acquires information from the source rather than actively receiving it.
Cahill talks about the importance of real-time price information:
“The availability of real-time, high-frequency price data has led to a significant increase in high-end DeFi applications, including near-term futures and onchain derivatives.”
Related: UwU Lend suffers second hack during $20M payment process
The impact of Pyth data feeds
Characterized by low-cost and high-frequency updates, Piez data feeds help secure and stabilize the data feed provided by decentralized applications.
On the topic of data stewardship implications, Cahill explains:
“Lending protocols like Morpho are safer by using data that includes multiple primary sources to provide robust and reliable pricing metrics. Such pricing can be reliably used for collateral pricing, liquidity triggers, and product combinations.”
Paiz is currently locked in a total value of $7 billion and offers more than 350 DeFi protocols on different blockchains.
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