DeFi Saver integrates Safe to bring account abstraction to DeFi

DeFi Saver, one of the leading apps for creating, tracking and managing DeFi positions on Ethereum just announced they’ve integrated account abstraction leader Safe, to take the experience of DeFi users to the next level. This comes on the back of Safe’s recently announced milestone of more than $100 billion in digital assets secured on Safe smart accounts, with more than 40 million transactions conducted on Safe infrastructure.

The update means that DeFi users of protocols such as Aave, Compound, Morpho Blue, Spark, CurveUSD and Liquity will be able to manage their positions more efficiently, through use of options that bundle or batch multiple actions into one single transaction using the power of the Safe smart accounts. This includes features such as leveraging up or unwinding in one transaction, doing collateral and debt swaps, moving whole active positions between different protocols, various automation features, but also even simpler things such as depositing collateral and borrowing funds in one, single transaction. All of this results in unnecessary steps being abstracted away from DeFi users and traders.

Besides all the advanced features that are made possible through use of a smart account, this update also allows DeFi users to greatly increase their security through the use of Safe multisigs, which are the security standard for asset ownership. Starting today, all current and new users can enjoy native multisig support at DeFi Saver moving forward.

Another important aspect for both teams is the composability and portability that users will enjoy. Since Safe is widely supported in DeFi apps and frontends, this means that all DeFi Saver users will be able to check and manage their positions through other apps. And, vice versa, all existing Safe users can now seamlessly connect to the DeFi Saver app and make use of the plethora of tools available.

"We believe that composability and portability are some of the greatest, most important aspects of DeFi and yet this primitive is being ignored by many teams opting to build small, proprietary, walled garden systems. That's why we chose Safe and intend to keep building on the open, permissionless building blocks." said Nenad Palinkasevic, the co-founder of DeFi Saver.

Lukas Schor, co-founder at Safe, commented, “Smart Accounts are critical infrastructure and we think that for DeFi mass adoption, we need the security of smart accounts, but also the UX benefits to already integrate within the top DeFi projects today. We welcome this move by DeFi Saver to accelerate the transition to smart accounts and Safe ecosystem.”

What does this mean for DeFi users today?

The native Safe integration means that existing Safe users can utilize all the defi power tools available in DeFi Saver directly on their existing positions in any supported DeFi protocols. This includes all the mentioned options, such as collateral and debt swaps, instant leverage adjustments, but also different automation options that can help you protect your lending positions from liquidation.

One interesting tool to highlight is DeFi Saver’s Loan shifter. For example, if you have an Aave position with ETH as your collateral, you could use the Loan Shifter to convert that deposited ETH to something like Lido’s wrapped stETH, so your collateral is earning extra yield and offsetting some of the borrowing costs. With the cool part being that this is done in 1-transaction, all while your Aave position stays right there on your Safe.

On the other hand, for DeFi Saver users and those looking to get started, the Safe integration introduces two instantly noticeable benefits. First, all new users will have setup costs reduced by 60%, as Safes are so much cheaper to deploy in terms of gas costs compared to previously used DSProxies. And second, the great thing about using Safes as your smart wallet is that you can manage positions outside of the DeFi Saver, too. For example, if you were to open a position in Compound, you could also access and manage it in the Compound app itself using the Safe.app interface.

Moving forward, the teams also highlighted that this change will allow great improvements to the user experience in DeFi through continued batching of multiple actions into single transactions, but also through features such as sign-only modes where all transactions would be handled for the users in the background, providing a quicker and smoother experience.

About DeFi Saver

DeFi Saver is a management application for decentralized finance protocols best known for their advanced leverage management features and automated liquidation protection options. Having initially started as a MakerDAO-focused dapp in the early days of DeFi, they quickly expanded support to more protocols, as well as multiple L2 networks. Today, DeFi Saver lets you utilize protocols such as Aave, Compound, Morpho Blue, Spark, CurveUSD and Liquity, across Ethereum mainnet, Arbitrum, Optimism and Base.

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About Safe

Safe (previously Gnosis Safe) is an onchain asset custody protocol, securing ~$100+ Billion in assets today. It is establishing a universal ‘smart account' standard for secure custody of digital assets, data, and identity. With Safe{Wallet}, its flagship web and mobile wallet, and Safe{Core} account abstraction infrastructure, Safe is on a mission to unlock digital ownership for everyone in web3, including DAOs, enterprises, retail, and institutional users.

Website, Twitter, Discord, Blog, GitHub, Docs