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The Watchdog Committee of the Arbitrum ecosystem (composed of Entropy Advisors and others) submitted a proposal to the governance forum on September 3, requesting a permanent ban on the projects Good Entry, Limitless, and APX Finance, as well as their founders, prohibiting their participation in all future ArbitrumDAO initiatives. The committee determined that these three projects engaged in grant abuse within the STIP and LTIPP incentive programs, involving a total amount of 457,553 ARB (approximately $76,000).Specifically, Good Entry received 200,000 ARB in the first round of STIP, of which 142,839 ARB flowed to 1,032 ineligible users, and there is evidence of self-farming by associated addresses, with the team refusing to cooperate with the investigation; Limitless exchanged all 75,000 ARB for USDC and cross-chain to Base, being classified as suspected theft; APX Finance was approved for 525,000 ARB, of which 239,714 ARB involved issues related to funds being held in the treasury, delayed distribution, and witch cluster problems. APX later merged with Astherus and rebranded as Aster, with approximately 70% of its assets located on the BNB Chain.According to the proposal, the three projects may defend themselves in the forum post before September 10. If the explanations are not accepted and the funds are not returned, the committee will initiate three separate Snapshot votes to decide whether to permanently ban the relevant projects and founders.

The re-staking protocol Renzo Protocol announced its name change to Renzo Finance and launched its first on-chain structured yield product Renzo Basis, which will go live on Hyperliquid, initially supporting BTC and HYPE. Lucas Kozinski, founder of Renzo Labs, stated that basis trading earns funding rate income by simultaneously holding a spot long and a perpetual contract short. Since the long and short positions hedge each other, asset price fluctuations do not affect the yield, and users earn the fees paid by perpetual traders every hour.Renzo stated that the product achieves automation through a triple protection mechanism, including hedge protection, yield protection, and safety buffer. Currently, the product does not use AI automation but instead conducts trading and strategy monitoring through Hyperliquid's proxy wallet (API wallet) with user authorization, without holding user funds. The relevant protection parameters can be customized by users. Renzo emphasized that its product differs from competitors such as Ethena and Bitwise's Superstate in that it is fully on-chain, self-custodied, and allows depositors to choose their own assets, trading venues, and risk parameters.Renzo Basis plans to support all assets on Hyperliquid that have both spot and perpetual markets and expand to other DeFi platforms, with the next stop being Lighter on Robinhood, where on-chain stock perpetual basis trading will be introduced.

According to Cryptopolitan, the latest data from Token Terminal shows that the supply of euro stablecoins reached $848.1 million on September 7, marking an annual growth of approximately 22.6%, with a net increase of about $156 million. In the same period, US dollar stablecoins only saw a net increase of about $159 million, but their base was as high as $298.5 billion, which is 350 times the market size of euro stablecoins.In terms of market concentration, EURC and EURCV together account for 82% of the euro stablecoin supply, with EURCV issued by SG-Forge, a digital asset subsidiary of Société Générale, holding a MiCA-compliant license and accounting for 19.6%. It is the first stablecoin led by a licensed European bank subsidiary.In terms of on-chain distribution, Ethereum absorbed about $125 million of the incremental supply this year, achieving a market share of 69.4%; Solana added about $30 million, with a market share of 14.7%; together, they contributed almost all of the annual increment. Base, on the other hand, saw a decline, dropping from $73.9 million to $58.7 million. Analysis indicates that the growth of euro stablecoins is primarily driven by supply from issuers rather than demand from users, and liquidity for euro trading pairs in DeFi lending pools and perpetual contracts remains weak, with the supply-demand gap yet to be bridged.

According to DeFiLlama data, as of September 9 at 13:30, Huobi HTX had a net capital inflow of approximately 447 million USD in the past 24 hours, ranking first among the centralized exchanges in their statistics. During the same period, the platform's total assets were approximately 4.232 billion USD, Clean Assets were about 4.218 billion USD, the 24-hour spot trading volume reached 1.036 billion USD, and the contract open interest was approximately 3.948 billion USD.As of September 8 at 9:00, Huobi HTX had a net capital inflow of approximately 437 million USD in the past 24 hours, also ranking first among CEX.

According to official news, the total value locked (TVL) in X Layer DeFi has reached a historic high of 232 million USD. Star, the founder and CEO of OKX, stated in a post on X that the TVL itself is not the end goal; more importantly, lending, stablecoins, RWA, yield markets, and on-chain capital markets are connecting and promoting each other on X Layer.It is reported that X Layer is continuously improving the DeFi and RWA infrastructure, promoting the development of more real-world assets, on-chain liquidity, and financial applications within the ecosystem.

According to The Block, Hyperliquid's total open interest (OI) reached $14.3 billion on Sunday, close to the level before the crash on October 10, 2025. On that day, Hyperliquid's OI dropped by about 56% in a single day, from $14.7 billion to $6.5 billion. The subsequent recovery occurred in two phases: HIP-3 increased its share of total OI from 18% to over 34% between March and August, with August HIP-3 OI setting a record of over $4.44 billion; however, in the past month, total OI increased by $3.57 billion, while HIP-3 OI decreased by $119 million, with its share dropping from 34% to 25%. The two catalysts driving growth include: Coinbase began directing Base App users to Hyperliquid in mid-August, and President Trump stated that the CFTC is working to bring Hyperliquid to the U.S. in a compliant manner. Notably, HIP-3 builders can retain up to half of the trading fees in the deployed market, which has impacted Hyperliquid's financial condition—its total revenue dropped from a peak of $457 million in Q3 2025 to $202 million in Q2 2026. Core crypto perpetual contracts allocate about 97% of fees to HYPE buybacks, so the OI returning to core business is far more valuable to HYPE than the OI generated through builders.

The Compound Foundation announced the launch of the Institutional Market, a lending market exclusively for whitelisted institutions, supporting borrowing of ETH, wstETH, WBTC, and cbBTC with USDC, with a maximum loan-to-value ratio of 87%. On its first day of launch, the market was oversubscribed, with participation from institutions such as DeFi Saver, K3/Nexo, KPK, and Yearn. The entry threshold is a deposit of 100,000 USDC, and Compound has reserved 200,000 USDC as supplier incentives, which will be proportionally distributed to whitelisted participants within three months, with a supply cap of 20 million USD.This market is the first product to be launched from the 52 million USD plan approved by the Compound DAO in August, described by the foundation as the Institutional Comet built on v3.5, independent of the DAO-funded V4 roadmap. Compound stated that v3 has been running for four years without any incidents. Currently, Compound's total locked value is 1.53 billion USD, with 1.42 billion USD on the Ethereum chain, ranking sixth among lending protocols on DefiLlama, with a 23% growth over the past 30 days.The Compound Foundation was relaunched on August 17 with a budget of 52 million USD, with a team from Coinbase, Anchorage, NEAR, and Maple.

According to The Defiant, the decentralized lending protocol Morpho deployed its fixed-term, fixed-rate lending agreement Midnight to Ethereum on September 8, expanding the product from the Base network to Ethereum, allowing Ethereum users to access USDC loans collateralized by WBTC or cbBTC. Morpho co-founder Merlin Egalite stated that the Ethereum launch will start with the "USDC | cbBTC and USDC | WBTC markets" and will gradually expand.The core difference between Midnight and Morpho Blue lies in interest rate certainty. Blue uses open loans where interest rates fluctuate according to a formula; Midnight, on the other hand, trades credit units at market-priced rates with fixed terms, allowing borrowers to determine financing costs in advance, and lenders can lock in returns instead of bearing interest rate changes with each block. Midnight lenders purchase credit units at prices below the one-to-one redemption value at maturity.However, the largest potential source of funds for Midnight remains constrained. The Morpho Vaults, holding approximately $5 billion in deposits, can only allocate to the Morpho Blue market until the DAO enables the Midnight configuration. Morpho co-founder and CEO Paul Frambot stated that enabling the Vault configuration requires just one DAO transaction, but Vault activation is expected to be achieved in the fourth quarter. At launch, the total deposits in the Ethereum Midnight market were approximately $7.41 million, with outstanding loans of about $2.63 million.

NASDAQ-listed company Hyperion DeFi (NASDAQ: HYPD) announced on September 8, 2026, an upward revision of its full-year guidance for 2026 and initiated a common stock repurchase plan of up to $20 million. The company claims to be the first publicly listed DeFi company in the U.S. built on Hyperliquid. The full-year adjusted gross profit guidance has been raised from the previous $5 million to $7 million to $7 million to $8 million.The company expects adjusted net operating cash flow to turn positive in the third quarter of 2026, earlier than the previous expectation of "turning positive by the end of 2026"; and it anticipates that core operating income will turn positive in the third quarter, with adjusted gross profit from the core DeFi business expected to exceed operating expenses after excluding equity incentives for the first time. The adjusted gross profit guidance for the third quarter is $2 million to $2.5 million, with operating expenses after excluding equity incentives at $2 million to $2.25 million, and core operating income at $0 to $500,000.The board has authorized the repurchase of up to $20 million of common stock in circulation within a maximum of 12 months, which can be conducted through open market purchases, private negotiations, block trades, and other methods, with no specific quantity guaranteed. The plan may be extended, suspended, or terminated at any time. CEO Hyunsu Jung stated that the DeFi business has accelerated recently, and the core business in the third quarter is expected to achieve breakeven in terms of profit and cash flow, noting that HYPD common stock is currently trading at a discount of about 20% to 30% relative to net assets.

According to CoinDesk, data from Curve Finance shows that its lending market has recorded a total of 704 "soft liquidation" events, involving 602 borrower addresses, with a median duration of 14.5 days, of which a quarter lasted at least 38.9 days, and some positions remained within the liquidation range for several months. Of these soft liquidations, 476 began in the first half of 2026. Unlike traditional lending protocols such as Aave and Compound, Curve's LLAMMA system does not sell off collateral all at once after the price drops below a threshold, but gradually converts collateral into borrowed assets within a price range. If the price rebounds before the loan completely fails, some or all of the conversions may be reversed. This means that borrowers are not in a grace period; their collateral has been partially liquidated during the loan's duration, but they still have the opportunity to restore their positions if the price reverses. However, soft liquidations are not without costs. Data shows that borrowers may still incur losses due to transaction fees, conversions, rebalancing, interest, and bid-ask price fluctuations, and if the market remains unfavorable, positions may still fall into hard liquidation. Curve Finance is a mainstream DeFi protocol focused on stablecoin exchanges and crvUSD lending, currently holding approximately $1.35 billion in deposits, with a DEX trading volume of about $3.4 billion over the past 30 days and active loans of about $46 million.

According to DefiLlama data, the DeFi TVL of the Robinhood chain is currently reported at 908.6 million USD, with a growth of 29.62% over the past week, ranking first among leading blockchains in growth rate.In terms of DEX trading volume, the network achieved 1.613 billion USD in transactions in the past 24 hours, ranking third across the network. The Robinhood chain went live in early July, and within just two months, it has become a mainstream blockchain in crypto in terms of TVL and trading activity.

Figure co-founder and Executive Chairman Mike Cagney tweeted that DeFi is more suitable for asset-backed finance (ABF), which can avoid double pledging, directly improve collateral, self-custody or autonomous venues, and liquidity collateral. He believes that Figure has brought ABF on-chain, but overall it is still in the early stages, with approximately $60 trillion of the market yet to migrate on a large scale.He also listed five reasons why traditional finance has been slow to enter on-chain applications: poor interface experience, which has allowed applications like Robinhood and SoFi to win on the retail side; the long-term difficulty of achieving qualified custody and recoverable self-custody; hedge funds and others requiring multiple wallets, multiple users, tiered permissions, and complete audits to be exported to fund administration and accounting; regulation is being streamlined, and the precedent for on-chain native securities is becoming clearer, with hopes for the CLARITY Act and guidelines; and KYC issues are easier to resolve than the outside world thinks, as on-chain programmatic screening and wallet-level permissions can be implemented.

Router Protocol, a cross-chain infrastructure project supported by Coinbase Ventures, announced that it will cease all operations by September 30 and plans to permanently destroy 303,333,198 ROUTE tokens held in its treasury, accounting for about 30% of the total supply of nearly 1 billion tokens. The team released a statement on X, stating that over the past year, they attempted commercialization, licensing, and acquisition negotiations, but failed to achieve sustainable operational results.Router identified the flow of funds from the cryptocurrency sector to artificial intelligence and the decline in cross-chain asset transfer fees as core challenges facing its operations. As activities concentrated on fewer networks and standardized infrastructure, the demand for its services has decreased. The team noted that bridging economic profits are thin, fees have been compressed, and costs have never stopped. As part of the closure, Router will negotiate with centralized exchanges to stop supporting ROUTE tokens, and the delisting arrangements and withdrawal processes may vary across exchanges.Router raised $4.1 million from investors including Coinbase Ventures and Polygon in 2021 and launched the proof-of-stake Layer 1 blockchain Router Chain in July 2024, but it was shut down in September 2025 due to infrastructure costs, validator expansion, and security risks. The team also disclosed two security incidents in 2025: in February, approximately 80% of the value was recovered through negotiations after a vulnerability incident, while losses from a chain-level vulnerability in July could not be recovered.

According to Bloomberg Intelligence's compilation of the first quarterly 13F holdings report for Hyperliquid ETF, a total of 30 institutions disclosed their holdings in Hyperliquid ETF, with a total amount of approximately 74.9 million USD. Brazilian institution Wealth High Governance Asset Management ranks first with nearly 24 million USD in holdings, owning 632,614 shares of the 21Shares HYPE fund (THYP), valued at 23,948,236 USD as of June 30.This list was published by Bloomberg Intelligence ETF analyst James Seyffart on the X platform. OLP Capital Management ranks second with 10.5 million USD, UBS ranks third with 7.5 million USD, Bank of Montreal ranks fourth with 6.7 million USD, and Jane Street ranks fifth with 4.4 million USD. Other listed institutions include Discovery Capital, Brevan Howard, Balyasny, and Boothbay. The top five institutions hold a total of approximately 53 million USD, accounting for 70.8% of the total disclosed amount.

According to GMGN data, the market capitalization of the Robinhood ecosystem Meme coin SHROOM has surpassed 30 million USD, with a 24H increase of over 330%. It is reported that SHROOM is a DeFi project on the Robinhood Chain focused on liquidity around stock tokens, with the core idea of using SHROOM as a liquidity connecting layer between different stock tokens.The project forms a trading pool by combining SHROOM with stock tokens such as NVDA, MSFT, GOOGL, SPY, AMD, and TSLA through its own LP protocol, and earns fees from the trading and price fluctuations of the related assets. The generated fees will be reinvested into the LP to deepen liquidity. According to market news, Meme coin prices are highly volatile and easily influenced by market sentiment and hot events, so please be aware of trading risks.

Connecticut Attorney General William Tong and State Banking Commissioner Jorge Perez issued a consumer alert: a resident lost $200,000 after depositing it into an unregulated DeFi crypto trading platform, and is currently unable to recover the funds. The alert lists seven offshore DeFi platforms: GMX, Gains Network, dYdX, Aevo, Drift Protocol, Vertex Protocol, and Hyperliquid, but does not state that the affected resident used any of them.Connecticut officials pointed out that some platforms offer leverage of 50x, 100x, and up to 250x; the related perpetual contracts also involve risks of liquidation, funding rates, smart contracts, and oracle risks. The alert also mentions perpetual contracts related to Apple, Tesla, Nvidia, and SpaceX, stating that they correspond to synthetic prices rather than actual stocks. Officials remind residents to verify the registration status of crypto services, keep records of transactions and communications, and report suspected fraud in a timely manner.

According to The Wall Street Journal, DeFi Development Corp. (NASDAQ: DFDV) announced that its variable rate C series perpetual preferred stock "CHAD Stock" has been priced for its initial public offering on September 3, with a total of 1.375 million shares issued at a price of $8 per share; the underwriters also received an option to purchase an additional 206,250 shares within 30 days.The company expects the gross proceeds from this offering to be approximately $11 million (before deducting underwriting discounts, commissions, and offering expenses), with the transaction scheduled to settle on September 8. The net proceeds will be used for general corporate purposes, including the purchase of Solana (SOL) and other digital assets, strategic transactions, and growth plans.