TL;DR
- Compound has launched new vaults on Polygon with Gauntlet and Morpho, aiming to regain market share in opposition to opponents like Aave.
- The collaboration makes use of Morpho’s infrastructure, which has sparked controversy because of the potential reliance on a direct competitor’s expertise.
- The deal has raised criticisms as a result of attainable conflicts of curiosity with Gauntlet and the dependence on exterior expertise.
Compound has launched a brand new collection of vaults on Polygon in collaboration with Gauntlet and Morpho, two acknowledged corporations within the DeFi business.
These vaults are designed for property like USDC, WETH, USDT, and WPOL, and are structured on Morpho’s expertise, a direct competitor of Compound. By way of this settlement, the protocol goals to regain market share in opposition to opponents like Aave, but it surely has additionally brought on vital controversy relating to the potential reliance on Morpho’s infrastructure.
Gauntlet, a key a part of this settlement, has been criticized by some members of the group. Whereas the partnership has the potential to generate substantial income, some imagine it places Compound’s autonomy in danger, as it should hand over a part of its core expertise. The collaboration will enable COMP to generate between $2 and $3 million in income over the following two to 3 years, however it should accomplish that utilizing exterior infrastructure, which some interpret as a lower within the protocol’s competitiveness in the long term.
The deal has raised questions relating to potential conflicts of curiosity with Gauntlet, which already has relationships with each Compound and Morpho. Some customers of the lending protocol query the choice to make use of Morpho’s infrastructure when it has already developed its personal expertise. Moreover, whereas Gauntlet claims it won’t take any charges from the vaults initially, there may be the likelihood that charges may very well be launched sooner or later, which may gain advantage Morpho.
Can’t Compound Innovate on Its Personal?
Morpho, which began as an optimizer on high of Compound, has grow to be an impartial protocol with a modular structure. This evolution has allowed it to supply a extra environment friendly technical different, which may very well be an incentive for COMP when going through extra trendy options.
The state of affairs highlights a actuality of the DeFi business: competitors and adaptation are key to survival. Though Compound’s technique seeks to revitalize its presence out there, the combination with Morpho’s expertise might elevate extra questions than solutions concerning the protocol’s future and its means to innovate on its personal
