Independent Analysis of Euler V2 for the month of August. Deposits and loans come from DefiLlama’s public API; token quantities from the vault contracts on Ethereum and Monad; fees and revenue rebuilt from Euler’s own contracts across ten chains, because DefiLlama’s fee adapter stopped publishing after August 22; fee-share history from the ProtocolConfig contract.
Methodology and named gaps are at the end. Full report with charts and live terminal: Euler in August 2026: the deposits grew, the book did not | Datum Labs
Summary
- Monad ended August larger than Ethereum for the first time, $385.6M against $334.3M. It led on 7 of 31 days and continuously from August 28, after one day cut $47.7M from Ethereum’s book.
- Gross deposits averaged $950.5M, up 5.9% on July. Active loans averaged $591.3M, down 0.1%. Deposits grew and borrowing did not. Every major lender grew in August; the sector median was 7.0% and Euler ranked seventh of ten.
- The growth was not growth. Revaluing end-August collateral at August 1 prices removes $38.0M and turns +3.3% into -2.7% on the two chains holding three quarters of the book.
- Euler runs the most intensively lent book of the ten, 153.6% loans to net deposits and 60.6% utilization.
- Borrowers paid $2.0M of interest and the protocol accrued $51.7K, a 2.60% take rate, none of which reached it on Ethereum. The protocol’s share of the interest fee was set to zero on May 12, 2026 on Ethereum and Monad; Avalanche was never changed and still runs at 50%.
Monad and Ethereum
Monad added $81.1M over the month while Ethereum lost $58.4M and Plasma $24.7M. Monad closed at $385.6M, 40.6% of the book, against Ethereum’s $334.3M at 35.2%. It first led on August 23, gave the lead back on the 26th and 27th, and has led continuously since the 28th. On monthly averages Ethereum is still ahead, $370M against $344M; the crossover belongs to the last days of August.
The decisive move was one day. On August 28 Ethereum’s gross fell $47.7M, from $377.7M to $330.1M, with outstanding debt accounting for $42.9M and net deposits falling only $4.8M. Gross falls when the collateral leaves with the debt, which is the shape of a levered position closing.
The two deployments are different businesses. Ethereum runs at 72.5% utilization against Monad’s 35.9%, and Monad’s largest vaults hold collateral with no borrowing against it: vUSD $73.6M, wstETH $41.9M, a Pendle principal token $36.2M and gAUSD $24.7M, all at zero loans. Ethereum is a drawn lending book. Monad is a collateral warehouse where the borrowing has not arrived.
Deposits, and the peer set
Measured on the same gross basis (idle deposits plus active loans) across the ten largest lenders, every one grew in August. Euler grew 5.9%, seventh, behind Fluid (+7.1%), Compound V3 (+6.9%) and Venus (+9.3%). Aggregate deposits across the group rose 11.3%, from $54.66B to $60.84B. Euler remains the smallest of the ten at $950.5M against Aave V3’s $26.70B.
Deposits peaked at $4.21B on October 7, 2025, and August closed 77.4% below that. Roughly $53M arrived over the month and none of it was lent; utilization fell from 62% at the end of July to 60.6%.
The growth that was not growth
| Asset | Aug 1 | Aug 31 | Change |
|---|---|---|---|
| Ethereum | $1,864.93 | $2,445.02 | +31.1% |
| Bitcoin | $63,013.10 | $78,282.14 | +24.2% |
| XRP | $1.06 | $1.37 | +29.0% |
Deposits are counted in dollars and held in tokens, so single-digit dollar growth against a rally of that size does not establish that new capital arrived. For Euler it can be measured directly, because the vault contracts publish token quantities.
| Basis | Aug 1 | Aug 31 | Change |
|---|---|---|---|
| As reported (USD) | $697.2M | $719.9M | +3.3% |
| Price-neutral | $697.2M | $678.5M | -2.7% |
End-of-month quantities are valued at August 31 prices for the reported figure and at August 1 prices for the price-neutral one. Repricing accounts for $38.0M, 5.8% of the covered book. Monad repriced by $33.2M, 9.4% of its gross; Ethereum by $4.8M, 1.6%, because its collateral is almost entirely dollars. Read through utilization, the measure moves the other way from the headline: 56.8% reported becomes 60.3% price-neutral, because the denominator shrinks while the loans do not. The result covers Ethereum and Monad, 76.2% of the protocol, and is not scaled to the whole book.
The hardest-working book in lending
Euler runs 153.6% loans to net deposits and 60.6% utilization, first of ten on both, ahead of Fluid Lending (113% and 53%) and Aave V3 (71% and 42%). A ratio above 100% is only possible through looping: a borrower deposits collateral, borrows against it, redeposits what was borrowed and borrows again, so the same base capital ends up backing several layers of debt.
Fees, revenue and the take rate
Borrowers paid $2.0M of interest in August. Lenders received $1.78M, curators $153.0K, and the protocol accrued $51.7K: a 2.60% blended take rate. Accrued, not received; on Ethereum none of it reached the protocol. Fees rose 2.5% and revenue 2.3% on July, measured the same way across the same 31 days and ten chains.
| Chain | Share of fees | Share of revenue | Take rate |
|---|---|---|---|
| Ethereum | 51.1% | 42.7% | 2.17% |
| Monad | 23.0% | 8.9% | 1.01% |
| Avalanche | 22.4% | 44.4% | 5.16% |
Euler Labs proposed reducing protocol fees to zero on April 29, 2026 ([Proposal] Reduce Euler Protocol Fees to Zero): the fees earned little, added a cost layer for curators and integrators, and growth should come before monetization. Thirteen days later the four-of-eight multisig that administers ProtocolConfig took the protocol’s share of the interest fee from 50% to zero on Ethereum and Monad, on May 12, 2026. Fees may return by a future proposal; none names a threshold or date. Avalanche was never changed and still runs at 50%, which is why a chain with 22.4% of the fees supplies 44.4% of the revenue.
Both surviving sources are narrow enough to name. eUSDC-47 is 99.2% of Ethereum’s revenue run-rate, borrowing $4.3M at 82.1%. eUSDt-3 is 83.0% of Avalanche’s, a single vault that produced $403.9K of interest in August, 20.3% of the entire fee base, fully drawn on $16.2M of borrows at 34.97%. The revenue line is two stressed markets and moves with their borrow rates, not with the size of the book.
ConvertFees events on Ethereum confirm it: the protocol’s share of realised fees ran between 50% and 69% from January to May and has been 0.0% every month since June. The $51.7K is what accrued, not what reached the protocol, and a further $107.7K sits accrued and unconverted across four vaults.
The buyback is paused by policy, not stalled. The last EUL purchase on FeeFlow settled on April 11, 2026 for 19,714.91 EUL; cumulative buybacks stand at $3.2M against a peak month of $713K in October 2025. Euler Labs proposed disabling the auctions in November 2025 ([Proposal] Temporarily disable FeeFlow auctions) after the Stream Finance losses left bidders unable to withdraw the assets needed to buy EUL, with fee shares accruing to the DAO treasury instead, and the April proposal holds them paused for as long as protocol fees are zero. Restarting the buyback is gated on a future proposal to reintroduce fees, not on trading activity.
Underneath a flat total, the mix moved. Ethereum’s fee base fell 12.5%, from $1.16M to $1.02M, while Monad’s rose 91.5%, from $238.6K to $457.0K, and six of the ten chains measured shrank. That is the deposit migration arriving in earnings about a month behind the balances.
Methodology and named gaps
- Deposits are gross: idle deposits plus active loans. Loans to net deposits is loans over net; utilization is loans over gross. The sector median is the true median of ten values (7.01%).
- Fees and revenue are rebuilt from Euler’s contracts because DefiLlama’s adapter stopped publishing after August 22, leaving 9 of 31 days missing. Compared on the days both cover, DefiLlama overstates fees by 14.5% and revenue by 38.5%, because its adapter multiplies per-share growth by total assets where the correct multiplier is total shares.
- $1.36M of accrued interest is excluded as uncollectible: it sits on Sonic vaults caught in the Stream Finance collapse, at 100% utilization with zero cash while the rate model holds them at 99.91% and 299.63%. The July equivalent was $1.25M, so the exclusion does not distort the month-on-month. Blockworks Research reports $365.1K for August against the $204.8K of combined protocol and curator fees found here; the difference is almost exactly the Stream accrual.
- The price-neutral result covers Ethereum and Monad only, 76.2% of the book. Four assets holding $43.0M (gAUSD, xUSD, ynRWAx, aHyperBTC) have no usable price history and are excluded. On-chain quantities were read on September 2, so composition shares carry a two-day offset.
- Euler publishes no financials of its own that could be read, so the fee figures are computed from contracts rather than read from anything Euler publishes.
If any figure here disagrees with your own records, say so in the thread and it will be checked against the source and corrected. The working behind every number is available on request, and the live terminal is at datumlab.xyz/euler-terminal.
Datum Labs publishes independent monthly research on DeFi lending. This post is analysis, not investment advice.