API3 DAO Discusses Oracle Extractable Value and Its Implications for the DeFi Industry
API3 DAO Discusses Oracle Extractable Value and Its Implications for the DeFi Industry
馃攽 MEV Uncovered: Secrets Revealed
API3 DAO highlighted the issue of Miner Extractable Value (MEV) in decentralized finance, where miners can prioritize transactions for profit maximization. This has led to lending protocols losing revenue from liquidation bonuses paid to searchers. API3 DAO proposed solutions like bundling oracles with searcher auction mechanisms or introducing a delay for liquidators to bid for exclusive liquidation rights. These solutions aim to recapture value lost to MEV and return it to the protocols, improving efficiency and reducing centralization.
On oracle extractable value and what it means for the industry. Each time you do a transaction, there's a complex machinery at play in the background. Between a user signing a transaction and it reaching finality in a block are searchers that compete to have transactions
Did you know鈦夛笍 Lending protocols are leaking MILLIONS of dollars each month due to MEV. In February alone, our friends at @aave paid out over $2.5M in liquidation incentives, totaling over $6.5M YTD. It鈥檚 time to recapture that value馃敟 #OEVNetwork
Let's unlock the secrets of how lending protocols work to discover how OEV Network can reclaim tens of millions of dollars lost to MEV each year. Here's a short thread on everything you need to know about MEV related to liquidations. 馃寠馃У
Sonic DeFi Workshop #3(a) Replay: Deploying Aave Fork with OEV Integration
The replay of Sonic's DeFi Workshop #3(a) is now available, featuring @billyjitsu_ from Api3 and @0xseg from Sonic Labs. The workshop covers: - Step-by-step guide to deploying an Aave fork - Integration process for Oracle Extractable Value (OEV) - Setting up OEV-ready oracles for lending platforms The session focuses on practical implementation, helping developers create their own lending markets with advanced oracle capabilities. *Watch the full workshop replay on X via [@SonicLabs](https://twitter.com/SonicLabs)*
API3 to Showcase Oracle Evolution at EthCC
API3 will demonstrate how oracles can become revenue-generating infrastructure at EthCC in Cannes, France (June 30 - July 3). The team will showcase their **Optimistic Evolution Value (OEV) Network**, which enables protocols to capture value from their oracle usage. Key points: - Protocols can monetize their oracle infrastructure - Direct value capture from data provision - Built-in solution for recapturing OEV Visit the API3 booth to learn how this approach helps dApps thrive in competitive markets.
Yearn and API3 Launch OEV-Boosted Morpho Markets
Yearn Finance has launched new OEV-Boosted USDC vaults built on Morpho Labs and powered by API3 oracles. The innovation captures value from liquidations and returns it to vault depositors, rather than losing it to validator bidding wars. Key features: - Improved yields through Oracle Extractable Value (OEV) redistribution - Exclusive use of API3 oracles for price feeds - Value captured during market volatility periods - Automated liquidation process The system works by obscuring oracle data and auctioning it to liquidators, shifting value capture from validators to the protocol. This creates a more efficient market with better returns for users. [Learn more about OEV-Boosted Vaults](https://forum.morpho.org/t/new-oev-boosted-vaults-by-yearn-api3/1833)
ETHPrague Conference to Address DeFi Value Recapture Through OEV
The upcoming ETHPrague conference (May 27-29) will feature discussions on Optimistic Execution Value (OEV) in DeFi protocols. The event aims to educate developers and protocol owners about: - Methods to recapture value currently being lost in DeFi operations - Implementation strategies for OEV integration - Revenue enhancement opportunities for protocols The conference follows a successful presentation at ETH Bratislava, where similar topics were explored. Attendees can find representatives for detailed discussions by looking for Api3-branded participants.
Oracle Migration Guide: Earn Rewards and Enhance Security
A new migration guide helps lending protocols transition from Chainlink to API3, offering multiple benefits: - Earn revenue through Oracle Extractable Value (OEV) Rewards - Enhance security with multi-oracle support - Seamless upgrade process that maintains system stability The guide comes as lending protocols increasingly recognize untapped revenue potential in oracle services. @MetisDevs workshop provides implementation support for protocols looking to upgrade their oracle infrastructure.