API3's OEV Solution Could Have Saved Aave $390k in Liquidation Transaction
API3's OEV Solution Could Have Saved Aave $390k in Liquidation Transaction
A liquidation transaction on Aave V3 resulted in a user being liquidated for over $5.6M with a $411k penalty. However, the liquidator only profited $20k as $390k was paid to the block builder to include the transaction. API3's forthcoming OEV solution could have saved Aave up to $390k in this transaction, allowing the funds to be directed to the user, LPs, borrowers, or added to Aave's treasury.
馃毃 OEV Alert! Liquidations are an important part of maintaining protocol health for lending dApps like @aave. Liquidations are a highly competitive market, with liquidators developing specialized bots in a race to capture the liquidation bonus. Transactions like this one below
Api3 Activates Security Monitoring for Morpho Vaults with Hypernative Partnership
Api3 has launched enhanced security monitoring for its Morpho vaults through a partnership with Hypernative Labs. **Key Features:** - Continuous monitoring layer added to existing security infrastructure - Protection against malicious actors through specialized watchguard system - Three vaults now live with enhanced security: - [Api3 dCOMP USDC](https://app.morpho.org/ethereum/vault/0x36cfe1568461E499391ef0A555300F1ae2da2439/api3-dcomp-usdc) - [Api3 Core USDC](https://app.morpho.org/ethereum/vault/0xe2221Aa07ec3266DA87763E2b1e28d07A8a4e53b/api3-core-usdc) - [Kabu USDC](https://app.morpho.org/ethereum/vault/0x54210d3f1A066413891AF9E17210E787d5C6e3f4/kabu-usdc) The vaults combine OEV-boosted yields with first-party oracle data and now include always-on security monitoring as an additional protective layer beyond Api3's existing curation and oracle security measures.
Hypernative Adds Real-Time Threat Detection to Morpho Vaults
Morpho vaults now integrate **Hypernative's real-time threat detection** to protect capital that captures OEV (Oracle Extractable Value) instead of losing it to MEV bots. **Key Protection Layers:** - 24/7 monitoring infrastructure - Proactive threat detection via Hypernative - Defense-in-depth approach for vault security **Vault Performance:** - $30M+ in deposits - Blue-chip collateral only - Yield boosted by recapturing liquidation incentives The integration adds another security layer over capital in OEV-Boosted Morpho Vaults, which route oracle extractable value back to depositors rather than external bots.
Api3 Vaults Now Available on Superform
Api3 has integrated its vaults with Superform, making them accessible through the platform starting today. **What This Means:** - Users can now access Api3 vaults directly through [Superform](https://superform.xyz) - This integration expands the range of vault options available on the Superform platform - Api3 joins other protocols like Euler Finance in offering vaults through Superform Api3 specializes in providing verifiable, decentralized data feeds directly from source.
Oracle Project Removes All Control Over Data鈥擠emand Hits Zero
An oracle project completely eliminated its authority over data sources and governance mechanisms in May 2026. **Key Changes:** - Removed ability to modify data sources - Eliminated upgradable proxies that could change protocol rules - Stripped all centralized control points **Market Response:** Demand dropped to exactly zero following the changes. **Context:** Previously, the oracle's primary function wasn't data provision鈥攊t was risk management. In over 90% of cases, the team advised projects against risky implementations, essentially acting as gatekeepers. The experiment reveals a tension in decentralized infrastructure: users may prefer trusted intermediaries over fully autonomous systems, even when decentralization is the stated goal.
Morpho Reduces USDC Borrow Rates, Offers Paid Borrowing Against MORPHO Collateral
Morpho has reduced borrow rates on its MORPHO/USDC market, creating a unique situation where users are **paid to borrow USDC** when using MORPHO tokens as collateral. **Key Details:** - Users can now borrow USDC against their MORPHO holdings at reduced rates - The rate reduction makes borrowing costs negative, effectively paying borrowers - This follows the March launch of borrowing incentives for MORPHO holders **How It Works:** MORPHO token holders can deposit their tokens as collateral and borrow USDC at favorable rates. The incentive structure currently offsets borrowing costs, resulting in net positive returns for borrowers. Access the market: [Morpho USDC Market](https://app.morpho.org/ethereum/market/0x6d95bf5fad1b0427205ee2b595f80b52e22394173de0832efa79fde88abb8525/morpho-usdc)