One of the most important problems encountered when lending and borrowing on DeFi platforms is outdated price data. Outdated or inaccurate pricing information can lead to inaccurate pricing and incorrect transaction execution. This can cause serious losses to both lenders and borrowers.

Pyth Network solves this problem by providing real-time and high-quality market data. The low-latency price data offered by Pyth provides DeFi protocols with the most up-to-date market prices. In this way, the risks of incorrect pricing and transaction execution are significantly reduced.

Michael Cahill, co-founder and CEO of Douro Labs, a major contributor to Pyth, says: “Pyth Network’s low-latency price data provides DeFi protocols with the most up-to-date market prices, preventing mispricing and transaction execution.” Significantly reduces the risk of outdated information that could lead to

Another important player of the partnership is Morpho. Morpho is an innovative lending platform that supports permissionless market making. This platform allows investors to create “specific pools of assets” with special risk management features. In this way, investors can develop the most suitable lending and borrowing strategies for themselves.

Morpho also aims to simplify DeFi yield management for investors. The platform allows users to determine many parameters themselves, such as liquidation rates, price oracles and collateral selections. In this way, investors have the potential to increase their returns by better managing their risks.

Cahill explains Morpho’s contribution to the project: “Morpho’s Blue system allows it to differentiate itself from underlying established protocols such as Aave and Compound by implementing isolated lending pools. It also builds on this concept, separating it from the underlying protocol by modularizing risk management and It allows curators to parameterize risk for each isolated pool.”

The last link of the partnership is Gauntlet. Gauntlet is a major company building the foundations of yield farming and one of Morpho’s first approved pool operators. Gauntlet will operate a USD Coin Core MetaMorpho Pool on Morpho. The most important feature of this pool is that it uses Pyth’s withdrawal method price oracle.

Pull method oracles actively pull data from a source rather than passively retrieving data. In this way, the accuracy and reliability of the data increases significantly. Real-time and accurate price data helps significantly increase the reliability and stability of DeFi platforms.

The Pyth Network, Morpho and Gauntlet partnership has the potential to radically change the lending and borrowing experience in the DeFi ecosystem. With real-time and reliable price data, platforms can become more secure and stable. This may increase the trust of both investors and lenders in DeFi platforms, paving the way for further growth and development of this ecosystem.

However, this partnership also faces some challenges. The DeFi sector is still a new and developing field. Therefore, problems such as lack of regulation and security risks remain. The collaboration of leading companies such as Pyth, Morpho and Gauntlet can contribute to solving these problems and making the DeFi ecosystem more mature.