Gauntlet network has partnered with all-in-one DeFi hub Acala in a move to bring more security to the fast-growing DeFi world.
The partnership means that Gauntlet, which builds financial models of blockchain apps, will help Acala optimize its solvency and capital efficiency.
It is the latest move by Gauntlet to provide security to the DeFi—a very new industry struggling with hacks and high costs. Last month, Gauntlet partnered with asset management platform, Balancer.
Acala, which runs on the parachain-based Polkadot, will use Gauntlet to essentially make trades smoother.
How the DeFi World Can Be Improved
DeFi (or decentralized finance) is exploding right now. It’s a big reason we’re in the spectacular bull run that kicked off last year.
But what is it?
For those who don’t know, DeFi is a term for a decentralized, non-custodial financial products that normally run on Ethereum. They allow people to borrow, lend and invest in crypto.
Sounds exciting? There can be some issues. Because the network (Ethereum) is being used by so many people, it can be expensive. There have been plenty of hacks, too.
Gauntlet and Acala want to change this.
So, what do they do?
Gauntlet is doing a lot in the DeFi world. It works to help make things safer by ensuring DeFi apps are resilient to attacks by bad actors and that those who use the network are rewarded fairly (another issue in the DeFi world).
Its platform is trusted by big DeFi projects like Compound, Aave and Celo. Coinbase has even invested in the project.
Acala is the DeFi Hub of Polkadot
It is Ethereum compatible, meaning that most DeFi apps can use its platform. But it is powered by Polkadot—a promising project that has seemingly blown out of nowhere to become one of the biggest cryptocurrencies by market cap.
The project is both a parachain platform on which other teams can build, and an application layer providing a suite of applications offering the financial products. On its platform, one can stake, swap, borrow, lend, earn crypto—but at the fraction of a cost.
Gauntlet will work with Acala to make its system even more secure and cost efficient. This comes just before Acala launches Karura, another DeFi trading platform soon to be deployed for use on Kusama— the “Bizzaro” to Polkadot’s Superman. A nearly identical alternate (code-based) world, where the threshold for wackiness is much higher than that of Polkadot’s!