Liquidations on Aave and the Role of OEV-Share
Liquidations on Aave and the Role of OEV-Share
Liquidations on Aave's V2 market on Ethereum Mainnet have been resulting in significant revenue leakage. Searchers typically give up 99% of their revenue to validators, with the majority going to builders who include their transactions. The introduction of OEV-Share aims to solve this issue by allowing liquidators to compete for oracle order flow, enabling dApps like Aave to recoup up to 99.9% of the incentives paid out. This would significantly improve protocol performance and help capture more value for the dApps themselves.
MEV is a problem & an opportunity. It's a problem for users, and yet it has created a huge economic surplus. The question is where should the value accrue? @MonocerosVen put together an amazing report on everything you need to know about OFAs & the changing MEV landcape: 🧵👇
Excited to share our deep dive into Order Flow Auctions (“OFAs”). Our team at Monoceros (@monocerosven) has talked to over 30 builders and researchers in the MEV space and put together what we believe to be the most thorough overview of OFAs to date. monoceros.com/insights/order…
Another liquidation today on @aave. This time a user was liquidated for over 285k $DAI. The liquidation incentives paid to the searcher were $10.4k! But how much of that did they keep? eigenphi.io/mev/eigentx/0x…
Another high-quality MEV report by @MonocerosVen, including an overview of liquidations and the role of searchers in capturing value in DeFi. Here's how OEV Share can change the liquidation landscape to improve protocol performance: 🧵👇
How do I become a MEV gigabrain & make sense of @tarunchitra's tweets ... is THE question I get asked the most. So, we @monocerosven decided to leave no stone unturned & wrote one of the most comprehensive overviews of MEV to date: The MEV Book monoceros.com/insights/maxim…
As market activity intensifies, we're witnessing a significant surge in trading volumes leading to increased liquidations. Yesterday, for instance, a user was liquidated for $76,831.5 $USDC on @aave v2 Ethereum. 🧵1/13 eigenphi.io/mev/eigentx/0x…
🚨 OEV Alert! 🚨 Yesterday a user was liquidated for over $8.9M on @aave V2 market on Ethereum Mainnet. The incentive for this specific liquidation was nearly $270,000! eigenphi.io/mev/ethereum/l…
dApps are leaking a lot of value due to MEV. @aave paid 130 ETH of a users funds to a validator for this liquidation execution. With OEV-Share, the user could have received that 130 ETH in a single transaction. All dApps are going to need MEV solutions. eigenphi.io/mev/ethereum/t…
650+ ETH has been refunded to MEV Blocker users to-date. That's over 6x as much as the next-most-popular RPC endpoint. dune.com/cowprotocol/me… To start getting paid to protect yourself from MEV, simply click "Add to Wallet" on mevblocker.io. No hints required ;-)
API3 DAO Ships New Integrations and Vaults Amid Market Volatility
API3 DAO continued development despite market conditions, delivering several key updates: - **New chain integration**: Robinhood Crypto support added - **Vault launch**: Purinta USDC Vault now live - **Morpho market**: CASHCAT/USDG market deployed - **Purinta features**: Additional functionality delivered The team emphasized their commitment to consistent building regardless of market direction, maintaining focus on infrastructure development and ecosystem expansion.
API3 Oracles Recapture Liquidation Value for Markets
API3 has developed an oracle system that changes how liquidation profits are distributed in DeFi markets. **How it works:** - When price movements trigger position liquidations, those updates generate value - Traditionally, this value goes to MEV searchers and block builders - API3's oracles capture this value and return it to the market itself **Current deployment:** - Over 200 data feeds available on the API3 Market - Integrated with OEV Network across 40+ chains - Provides real-time data access with value recapture built in This approach redirects profits that would normally leak out of protocols back to the platforms and their users, rather than being extracted by third parties.
Zero-Percent Borrow Campaign Runs Without Token Emissions
A new 0% borrowing campaign is operating without token emissions, breaking from the typical DeFi playbook. **How it differs:** - Traditional campaigns print tokens as rewards - Farmers typically dump those tokens immediately - Rates rise again once emissions end **This approach:** - No new tokens are minted - The market sustains itself organically - Eliminates the boom-bust cycle of emission-based incentives This model addresses a recurring problem in DeFi where artificial incentives create temporary activity that evaporates when rewards stop flowing.
Zero-Cost USDC Borrowing Against wstETH on Morpho Labs
**Free borrowing opportunity on Morpho Labs** Traders can currently borrow USDC against wstETH at 0% net cost on Morpho Labs. While the base rate is 2.8% APR, live incentives fully cover the borrowing cost. **Key details:** - Market: wstETH/USDC on Morpho Labs - Base rate: 2.8% APR - Net rate after incentives: 0% - Campaign details: [Merkl opportunities](https://app.merkl.xyz/opportunities/ethereum/MORPHOBORROW/0x6d2FbA32B8649d92432D036c16aA80779034b746) - Market link: [Morpho market](https://app.morpho.org/ethereum/market/0x6d2fba32b8649d92432d036c16aa80779034b7469b63abc259b17678857f31c2/wsteth-usdc) The opportunity is OEV-boosted and powered by API3 DAO. The incentive program has a limited duration, so rates may change when the campaign ends.
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.