How Gauntlet Leveraged Its Risk Management Expertise to Curate Institutional-Grade Yield Vaults
63
$1B+
"Collaborating with Morpho on the Vault Curation business model has created new opportunities to build scalable yield opportunities in DeFi. For the first time, we can apply our years of DeFi research and risk management to drive risk-adjusted yield for users, whether institutions or individual DeFi explorers."Nicholas Cannon, VP of Growth at Gauntlet
The Opportunity
Gauntlet established itself as one of DeFi’s earliest and most trusted risk management and research firms, working with the largest DeFi protocols and building deep expertise in protocol analysis, growth optimization, and cryptoeconomic modeling.
The emergence of large-scale demand for sophisticated DeFi yield strategies enabled Gauntlet to leverage its proven risk expertise to build a scalable asset curation business.
The Solution
Gauntlet adopted Morpho’s infrastructure to launch its vault curation business.
Using Morpho Vaults, Gauntlet deployed and curated institutional-grade yield strategies through the Morpho Curator App. Launching each vault took just minutes with zero technical overhead – it is that simple.
With their vaults deployed, Gauntlet could focus on what they do best: curating risk-reward to offer the best risk-adjusted returns for vault suppliers. In exchange for managing these strategies, Gauntlet receives a performance fee from the interest generated by certain vaults, while others sport 0% performance fees.
Morpho’s built-in distribution network gave Gauntlet immediate access to liquidity suppliers through the Morpho App (which sees hundreds of millions in daily deposits) and integrations across the Morpho Ecosystem, DeFi native or Fintech in the front, DeFi in the back – eliminating the typical months-long process of building distribution relationships.
The Results
Gauntlet launched its first vault in minutes instead of the 6-12 months typically required to build infrastructure from scratch. Future vaults can be launched in the same timeframe, allowing Gauntlet to respond quickly to market opportunities.
Gauntlet Morpho Vaults’ total assets grew from $0 to just under $1B within one and a half years, making them the third largest curator on Morpho, according to DeFi Llama.
As a result of its recent success, Gauntlet has recentered its business around vault curation, with over 60+ vaults across 6+ chains, including Ethereum, Base, Katana, Unchain, and Arbitrum, and covering crypto-native assets and tokenized real-world assets such as treasuries and private credit funds.