DeFi Saver Newsletter: September 2026

August was another busy month at DeFi Saver, with plenty of new tools, product upgrades, and some ecosystem developments to keep things interesting.

Let’s get into it.

1. Ecosystem news: weETH is no longer a restaking token; PT-reUSD liquidation event and risk management in DeFi.
2. DFS news and updates: Morpho Midnight integration, Aave Position Simulator launch, Polymarket triggers and Chase orders at Hyperliquid x DFS; DFS goes to ETH Belgrade.
3. DeFi Saver Stats for August.
4. Position of the month.

Risk management in DeFi: A feature or a bug?

At the very beginning of August, ether.fi announced it was removing all restaking exposure from weETH, ultimately making its flagship asset a straightforward liquid staking token. 

Unlike traditional LSTs (like stETH or rETH), Ether.fi would automatically plug deposited ETH directly into EigenLayer. This allowed holders to stack base staking rewards alongside EigenLayer and ether.fi points to boost overall yield.

What changes for users? Ultimately, not much. Your positions will continue to operate normally. However, expect supply APYs to reflect the removal of restaking yields. Keep this information in mind if you currently hold leverage with weETH as collateral.

In other news, a recent liquidation event made some serious waves across DeFi Twitter.

On August 25, roughly $36 million worth of loans were liquidated across Morpho markets using PT-reUSD (principal token) as collateral. The event, however, wasn't the result of an exploit. One user bought enough YT (the complementary yield token) to push the price of PT down by 2.8% and trigger liquidations for positions already operating dangerously close to their liquidation thresholds.

The episode sparked plenty of discussion around oracle design, liquidity and just how much risk can quietly build up when a large lending market relies on relatively shallow underlying liquidity. In this case, some of the riskiest positions reportedly had less than a 3% liquidation buffer, not exactly the kind of buffer you want when markets decide to get interesting.

The bigger takeaway here is that risk in DeFi isn't limited to exploits and private key compromises. DeFi has always been a space that tends to reward those willing to take on substantial risk. Nevertheless, higher potential returns inevitably come with higher exposure to things that can go wrong.

The best thing you can do is stay as informed as possible about the variables that matter: the type of asset you're using, the market you're entering, and the basic mechanisms underpinning the protocols and strategies involved.

We do recommend giving this article a read for more context and greater insight into risk management considerations in DeFi.

And, just to be clear, the affected market mentioned above is not supported or integrated by DeFi Saver, so no DFS users were affected by this event. 

DeFi Saver news & updates

August was a busy one, with a few new integrations, some new tools, and a couple of things happening outside the app too. Here’s a quick look at what we’ve been working on.

We’ve integrated Morpho Midnight

We’ve added support for Morpho Midnight on Base, as well as all currently available  Morpho and Tenor markets.

Midnight gives borrowers and lenders more predictability: borrowers know their borrowing cost upfront, while lenders know their expected return for the duration of the position.

On DFS, users can browse available Morpho and Tenor markets in one place, filter by collateral and debt assets, and compare fixed rates and maturity dates before choosing a market. Once you find a suitable one, you can enter a leveraged position in a single transaction, with control over leverage, borrow rate, and slippage.

Managing positions is covered too, with Boost & Repay available from day one, including options to adjust positions using collateral or the orderbook.

Worth noting, however, that for now Morpho Midnight actions require a smart wallet, with EOA support and DFS Automation support coming later.

DeFi Saver launches historical Aave position simulator

Ever wondered whether using more leverage would have made your Aave position more profitable? Or maybe you got liquidated during the February crash and wondered what you could have done differently?

Well, now you can rewind the tape and check! 

Our new Aave Position Simulator lets you create a simulated Aave position from scratch or enter a wallet address to recreate an existing position. Just choose a historical timeframe and see how that position would have performed based on actual market data.

You can also replay the same position with DFS Liquidation Protection, Automated Leverage Management, or Stop Loss/Take Profit enabled, and calculate how much/whether it would affect your profit.

Polymarket signals meet Hyperliquid 

DeFi Saver now lets you use Polymarket odds to trigger automated Hyperliquid trades.

Set conditions based on an event’s probability crossing a certain threshold or moving by a set percentage, and let Automation handle the trade automatically. You can also use Polymarket Close to partially or fully exit a position when the odds move.

Chase orders are now available too, allowing limit orders to follow the market while staying at the top of the book.

Check out our previous blog post for a more detailed breakdown.

Extra incentive for USDC suppliers on the new Compound Institutional Market

Compound has just launched its new institutional Market, offering the highest LTV for blue-chip assets across all Compound V3 markets. And with it came a 20k incentive program for users depositing USDC to Compound through DeFi Saver.

Moreover, the rewards will be distributed at the end of the initial three months. You can find the Institutional Market within the Compound V3 dashboard on DeFi Saver.

DeFi Saver Events

Alongside meeting users, visitors, and fellow builders, we also brought back something we haven’t done in a while: not one, but three side events.

First up was Beers & DeFi, which has by now become a staple of ETH Belgrade. This year, we teamed up with the Ambire crew to make it the biggest one yet. And we’re pretty sure we delivered.

At the same time, another side event was happening just one floor above.  We partnered with the Yearn to organise a Chess Yearnament, with the help of a particular grandmaster from the Yearn team. 

The competition was fierce, but we had a great time and hope everyone enjoyed the games as much as we did.

And last, but certainly not least, we switched things up and hit the court for the Web3x3 basketball event. A more relaxed change of pace and some friendly competition. A pretty good way to wrap things up, might I say.

DeFi Saver August stats

August was a strong month for DeFi Saver, with 12,777 transactions routed through the platform and approximately $122.9M in total swap volume.

The recent ETH pump definitely helped push these numbers higher, as users tend to repay debt or increase leverage when the market moves. And being able to do both through DeFi Saver in a single transaction makes these moves much easier to execute.

Of the total volume, around $52.6M came from Aave V3 users, while another $23.5M came from Aave V4. This is a significant increase from the $6.6M recorded by V4 last month, though it is worth noting that this number coincides with the general increase in V4’s adoption in August.

Meanwhile, DeFi Saver Automation currently manages approximately $400M in collateralized assets in just over 1000 user positions. 

That’s the first time since the beginning of the year that the number of automated positions has crossed the 1,000 mark, so it’s lovely to see automation adoption picking up again.

Position of the month

As we mentioned earlier, the recent ETH price pump brought a noticeable surge in both the number and volume of transactions routed through DeFi Saver.

But, as we like to point out in this segment, not all of those transactions are necessarily necessary. Of course, you’re always in control of what you do with your assets and which actions you choose to take. Our job, however, is to make sure you know what your options are, and that includes how to perform those same actions while avoiding needless fees.

So for this month's edition of Alex’s unsolicited advice commentary, we’ll be looking at one Aave V4 position that managed to secure a $4,477 profit in a matter of just 3 days.

Here’s a quick recap of what happened:

• The user initially supplied 47.03 ETH (at $87.868) as margin and borrowed 68,000 USDC on August 4, quickly ramping up their collateral to 115.70 ETH while borrowing a total of 128,000 USDC at variable rates between 3.11% and 3.69%.
• They built a total position of over $216K worth of ETH exposure, giving them roughly 1.78x leverage on their initial capital.
• When the price surged on August 6, they manually repaid the position in back-to-back repayments, paying off their entire 128,000 USDC debt plus roughly $27 in accrued interest.

They closed on August 7, with a $4,477 profit (a 2.07% return in just 72 hours) after fully withdrawing their remaining 38.70 ETH.

On August 23, they longed yet again, with the position currently sitting at a $1,193.88 profit.

Now, we’d like to remind this user that they can, in fact, make all of these steps a little less arduous.

They can look into the available DFS Automation options and have the position automatically rebalanced as the market moves, or at the very least consider setting up notifications.

Our new Liquidation Protection option takes minimal effort to set up, but saves a lot of time and stress knowing it will use a minimal amount of your collateral to repay a part of the debt once your safety ratio hits 105%, to get you back up to 110%. Also, take advantage of our handy repay tool or the 1-tx close option, which can simplify these manual unwinds from 5 separate tx down to just a single one.

We hope you enjoyed this month’s Position of the Month segment. If you have any comments or ideas on what topics you’d like us to cover next, or want to share your thoughts on this month's Newsletter issue, we’re always happy to chat on our DFS Discord.

That would be all for this issue of the DFS Newsletter. See you again next month!

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