Decentralized Finance Protocol Compound marches ahead with plans to tap his competitor Morho with the launch of new credit hires on Polygon.
The new safes went live on March 13 at 11.30 am Eastern.
It comes after one proposal Focused on bringing Morpho (Morpho) printed safes to Polygon (Pol). Gauntlet and Compound (Compound (Comp) launch the new credit hires with $ 3 million in incentives – each $ 1.5 million from compound and polygon.
Although this step has already been an important point of discussion for Compholders and the wider Defi community, the announcement indicates an important shift in the decentralized credit space. In essence, compound passes from its own technological stack to the infrastructure of Morpho – an important development in the Defi landscape.
Co-founder and CEO of Morpho, Paul Frambot, described the development as a ‘full-circle moment’.
“We are the circle with compound to build on Morpho. Morpho started as an optimizer on top of compound before evolving to a completely independent loan primitive. Now Compound is about to build on Morpho, ‘Rambot noted.
In January, Gauntlet introduced the proposal aimed at the new credit hires on Polygon. The platform considered cooperation as a strategy to improve risk control, to accelerate assets and to offer a sustainable path ahead for connection.
1/ Compound Vaults (USDC, USDT, WETH) usher in a new era for @compoundfinance. Each partner in this collaborative effort adds invaluable benefits to Compound:
Gauntlet — risk-optimized curation@0xpolygon — low fees + high throughput@MorphoLabs — scalable infrastructure https://t.co/8bSDHTvAzK pic.twitter.com/J4Ta9QsYU3
— Gauntlet (@gauntlet_xyz) March 13, 2025
It is striking that Compound has seen its market share fall as an Aave (Aave) and Morpho grow, with Aave’s V4 seen as an upgrade that would further reduce compound the turnover and market size.
Use morpho to generate the yield, criticized By others, there is a path to take advantage of benefit holders, according to the management proposal.
Compound will use the credit infrastructure of Morpho, the risk management framework of Gauntlet and the low costs of Polygon POs and deep liquidity to reform the loan landscape on the chain.
Morpho, which has collected $ 50 million in a financing round, supported by Coinbase Ventures and A16Z in 2024, has currently locked a total value of more than $ 3 billion. The Defi Giant Aave’s TVL per Defillama is more than $ 17 billion and Compound’s is $ 2.3 billion.
