Gauntlet will become a Morpho Labs Risk Curator days after its fallout with Aave

Morpho Blue is designed in a way where risk management is externalized, Morpho Labs’ CEO said

article-image

Gauntlet and Adobe Stock modified by Blockworks

share

Gauntlet, a blockchain analytics company, is joining lending protocol Morpho Labs as a Risk Curator, days after it decided to leave open-source liquidity protocol Aave.

This decision also follows growing tensions between Aave and Morpho, where Morpho’s CEO, Paul Frambot, recently accused Aave in a post on X of “attempting to prevent the growth of Morpho by introducing Merit, a rewards program.”

Loading Tweet..

Frambot told Blockworks that in its latest renewal proposal, Aave delegates mentioned that they did not want to see Gauntlet working with Morpho Labs.

Read more: Why Gauntlet is leaving Aave after 4 years as ‘risk steward’

“Upon ending their contract, they were free to start building on top of Morpho. For Gauntlet, this is a more scalable growth/revenue opportunity. One that they fully own and that does not involve any politics,” Frambot said. “For Morpho, the expertise and reputation of Gauntlet will surely strengthen Morpho’s network.”

Frambot noted that unlike Aave and Compound where risk experts are paid as consultants to manage a monolithic pool of liquidity, Morpho Blue is designed in a way where risk management is externalized to risk-managed vaults which are built on top. 

“Anyone can build such a vault to offer lending opportunities with any risk and compliance profile. For example, a vault could replicate the risk profile of Aave v3, or of Compound v3. Risk-managed vaults earn their own fees on their own risk management. Morpho takes no cut,” Frambot said.

Teams including BlockAnalitica, B.protocol/Risk DAO, SteakHouse Financial and RE7, are already building various vaults with different collateral exposure on Morpho Blue. 

The addition of Gauntlet will likely bring a “better outcome for the Morpho ecosystem and users as they will compete on performance, fees and transparency,” Frambot added.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

Institutional staking providers specialize in offering secure, compliant, and scalable solutions for organizations, asset managers, and individuals who wish to stake large volumes of digital assets. Staking-as-a-Service Providers (SaaSPs) act as intermediaries, running blockchain nodes and managing the technical complexities of staking on behalf of clients, often providing custody, reporting, and yield optimization features across a broad range of assets and networks.

article-image

The plan is to scale PayPal USD with Spark’s liquidity framework, building sustainable stablecoin markets

by Blockworks /
article-image

The company introduced a dollar-backed stablecoin to power instant payments and microtransactions for AI-driven web platforms

by Blockworks /
article-image

The plan is to make GameShift the “consumer portal” that bridges non-crypto gamers into Web3

article-image

Google backs $1.4B of obligations and takes 5.4% stake as Cipher expands AI data center footprint

by Blockworks /
article-image

Nine banks plan MiCA-regulated token to challenge dollar dominance and strengthen Europe’s payments autonomy

by Blockworks /
article-image

Sponsored

The FAIR L1 embeds encrypted execution into the consensus layer and removes the transparency window that makes MEV possible

by Sponsored /