Gauntlet and Compound launched the Morpho-powered Polygon PoS lending vault, and a $3 million incentive program was launched

Decentralized finance (DeFi) lending is entering a new phase! Gauntlet and Compound DAO announced the launch of Morpho-powered lending vaults and the selection of Polygon PoS as the deployment platform. These vaults are live, and a $3 million incentive program will be released to attract early adopters and boost liquidity.

Through Polygon PoS's low transaction fees, high throughput and deep liquidity, these lending vaults managed by Gauntlet will set a new standard for the on-chain lending market. The partnership combines the power of Compound, Morpho's technology, and Gauntlet's risk management expertise to address efficiency and risk in the DeFi lending market, laying the foundation for the next generation of on-chain finance.

Innovative DeFi lending: speed and efficiency

Traditional DeFi lending faces problems such as slow asset listing and inefficient use of capital, and Morpho-driven vaults are designed to solve these pain points. The new system emphasizes real-time optimization and faster market deployment, and ensures market stability and liquidity through dynamic risk management.

These vaults will accelerate the growth and adoption of DeFi on Polygon PoS, drive a more efficient lending environment, and further enhance the overall competitiveness of the DeFi market.

$3 million incentive program to attract early adopters

To drive early adoption of the new vault, Compound DAO Community Governance has approved $3 million in incentive funding that will be disbursed over approximately 120 days to promote liquidity and ensure solid initial growth.

Polygon Labs offers $1.5 million (POL)

Compound DAO offers $1.5 million (COMP)

These incentives will be used to encourage lending activity, allowing users to adapt and participate in this DeFi lending revolution faster.

Lending technology innovation: a safer and more flexible lending mechanism

Unlike traditional lending protocols, Morpho-driven vaults provide a partial liquidation mechanism to avoid the liquidation of users' overall positions and reduce the impact of market volatility. In addition, carefully adjusted loan-to-value ratios (LTVs) and liquidation thresholds give borrowers greater security.

Gauntlet's Risk Management: Ensuring Market Stability

As a risk management specialist, Gauntlet will be responsible for adjusting liquidation incentives and penalties to maintain market health and reduce the risk of undercollateralized positions. These adjustments will help reduce tail events and ensure the stability and sustainability of the overall market.

Advantages of borrowing new vaults

These innovative vaults offer four core advantages over traditional DeFi lending platforms:

Faster market deployment: new assets can be listed within 24 hours Immutable treasury mechanism: reduce governance risk and improve DeFi composability Optimized clearing mechanism: strengthen security buffer and reduce liquidation risk Adaptive interest rate model: dynamically adjust interest rates according to market demand to improve capital use efficiency

A new generation of DeFi lending

The partnership is driven by four key players, each of whom plays a key role in the future development of the lending market:

Polygon PoS: Provides low-cost, efficient on-chain infrastructure to ensure liquidity and transaction speed

Compound DAO: Owns and manages the treasury to ensure the long-term sustainability of the DAO

Morpho: Provide an open lending infrastructure to improve market transparency and operational efficiency

Gauntlet: Responsible for treasury risk management, continuous optimization of market parameters, ensuring capital efficiency and market safety

This collaboration will not only enhance the DeFi lending experience on Polygon PoS, but will also bring a new standard of more secure, scalable, and efficient lending to the entire crypto ecosystem. With the promotion of technological innovation and incentives, the DeFi lending market will usher in more prosperous development in the future.

This article by Gauntlet and Compound launches the Morpho-powered Polygon PoS lending vault, and the $3 million incentive program first appeared on Chain News ABMedia.