After parting methods with Aave on Feb. 21, citing clashes with the group, threat administration agency Gauntlet is now working with decentralized lending platform Morpho, one in every of Aave’s most important opponents.

The transfer intensifies tensions between Morpho, Aave, and Gauntlet after the previous’s CEO, Paul Frambot, claimed on Feb.19, “Aave is trying to forestall the expansion of Morpho by introducing Benefit, a rewards program.”

Morpho has seen a gradual rise in complete worth locked (TVL), in response to DefiLlama. It holds $909 million in TVL, up from $283 million a yr in the past. In the meantime, Aave is the main lending protocol with $8.9 billion in TVL.

In accordance with a press launch shared with The Defiant, Gauntlet’s transfer to Morpho goals to seize a few of Aave’s market share by specializing in newer lending protocols.

“Working with a workforce of quants used to buying and selling in milliseconds, Metamorpho is our greatest alternative but to immediately stress take a look at our capabilities,” mentioned Nick Gannon, VP of Progress for Gauntlet.

Morpho Labs touts itself as a brand new paradigm within the lending house by externalizing threat administration by way of its new lending protocol, Morpho Blue. The platform strikes threat administration to an open market, enabling various threat profiles.

The protocol has been busy including new crypto merchandise, having lately built-in PayPal’s new stablecoin, PYUSD, claiming it was the primary DeFi protocol to take action.

Aave’s group has already voted the token in however the protocol is but to launch the mixing.

Gauntlet dropped Aave final week after citing problem in “navigating the inconsistent pointers and unwritten aims of the biggest stakeholders.” The transfer, triggered by criticism from Aave’s group as a consequence of Gauntlet promoting its software program to different protocols, abruptly ended a $1.6 million two-year settlement.