Lending Protocols Capturing Liquidation MEV with Oval
Lending Protocols Capturing Liquidation MEV with Oval
💰 Liquidation Goldmine Unlocked
Oval is a service that allows lending protocols to capture a significant portion of the miner extractable value (MEV) generated during liquidations on their platforms. When market volatility increases, the amount of MEV from liquidations also rises. Oval facilitates an auction process where MEV searchers bid to backrun price updates and liquidate undercollateralized loans first, earning the liquidation bonus. Oval then distributes up to 90% of this MEV back to the lending protocol. This helps lending protocols recapture value that would otherwise be lost to the MEV supply chain.
Liquidation MEV skyrockets when markets get volatile. For example, if @CompoundFinance had captured the liquidation MEV they generated during the volatile years of 2021-2023, they would’ve earned 136.97% more revenue. Don’t miss out this market cycle. Use Oval.
When a lending protocol pays out a liquidation bonus, who profits the most? Validators. Instead of incentivizing security, most of that bonus is lost to MEV. This isn’t fair. Oval captures that MEV and distributes it to those who created it.
Tweet not found
The embedded tweet could not be found…
Lending protocols generate OEV when liquidations occur on their platforms. Oval allows them to capture it. But what exactly happens when these liquidations occur? Let’s take a closer look. 🧵
Lending protocols issue liquidation bonuses to incentivize people to secure their solvency. However, the majority of these funds are lost to the MEV supply chain. This is a capital inefficiency that lending protocols can instantly solve with Oval. x.com/hal2001/status…
When we shipped Oval we learned that lending protocols had no idea how much they lost to MEV. This @aave v3 liquidation paid a $73,000 liquidation bonus. The liquidator only got $12. The rest was lost to MEV. @UMAprotocol Oval could have captured and returned ~$65K to Aave.
UMA Protocol Implements Two Major Upgrades: UMIP-185 and UMIP-186
Two significant upgrades have been implemented in the UMA Protocol: - **UMIP-185**: Optimistic oracle now uses hash and pointers instead of full ancillary data, reducing onchain data and gas costs - **UMIP-186**: Settlement Price Approval Threshold (SPAT) increased from 50% to 65%, requiring stronger consensus for dispute votes The SPAT change affects only contentious cases (2% of total votes). In 2025, only 6 out of 291 votes would have been impacted. This upgrade strengthens security for high-stakes decisions while maintaining efficiency. [Learn more about SPAT increase](https://discourse.uma.xyz/t/increase-spat-to-65/2177)
Polymarket Shows Mark Carney Leading in Canadian Election Betting
Prediction market Polymarket shows former Bank of England governor Mark Carney maintaining a strong lead in Canadian election betting markets: - Carney holds 78% odds vs Conservative Pierre Poilievre at 22% - Trading volume exceeds $50M - Market secured by UMA protocol Earlier in March, Poilievre supporters could get 2.56x returns on bets, reflecting longer odds. The sustained high volume and stable odds suggest strong market conviction in Carney's position.
UMA Voting System Shows Strong Growth in Q1 2025
UMA's decentralized voting system has shown significant growth in early 2025: - Unique voter addresses increased 300% over six months - Total unique voters now exceed 2,000 addresses - Growth indicates wider participation in decentralized voting The expansion of unique voters strengthens the system's decentralization and reliability. More participants help ensure accurate on-chain data verification. *Key Milestone*: This marks the largest growth period for UMA's voting system since launch.
EigenLayer Launches Slashing Feature, Completing Core Protocol
EigenLayer has activated its slashing mechanism on mainnet, marking the completion of its core protocol launch. This feature enables on-chain accountability for services in the Verifiable Cloud infrastructure. Key points: - Slashing mechanism now live on mainnet - Enables enforcement of operator behavior through economic guarantees - Completes EigenLayer's original vision for trustless services - Widely covered by major crypto media outlets The launch represents a significant milestone for decentralized infrastructure on Ethereum, with over 35 global media outlets covering the development. [Read the full announcement](https://www.blog.eigenlayer.xyz/slashing-goes-live/)
UMA Adds Early Proposal Warning to Reduce Disputes
UMA is implementing a new warning system to address the issue of premature proposals leading to disputes. - A warning message will now appear before proposers can sign - This change aims to reduce the number of disputed proposals - The warning helps educate proposers about optimal timing For detailed information about early proposals and P4 timing, check out UMA's comprehensive guide: [What is P4 and Why Does it Matter?](https://blog.uma.xyz/articles/what-is-p4)