Liquidations on Aave and the Role of OEV-Share

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.

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 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.

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—it 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 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)