OEV Network Aims to Recapture Value Lost by Lending Protocols Due to Oracle Updates
OEV Network Aims to Recapture Value Lost by Lending Protocols Due to Oracle Updates
🤯 Mind-Blowing Solution...

Oracle extractable value (OEV) refers to the value that can be extracted from oracle price updates on decentralized lending protocols. Stale prices on-chain can create arbitrage opportunities, while price updates can trigger liquidation bonuses. This leads to tens of millions of dollars being lost by lending protocols annually due to OEV. OEV Network, a zk-Rollup powered by Polygon CDK, aims to solve this issue by recapturing OEV across all chains that use the API3 oracle stack. By allowing lending protocols to recapture this value, OEV Network presents an evolution in oracle architecture, enhancing the performance and sustainability of decentralized applications (dApps).
What is oracle extractable value, or OEV❓ Here’s a short thread to understand the basics and learn why solving OEV will disrupt the current business model for lending protocols and open the door to innovation. 🧵⬇️
Lending Protocols Missing Massive Revenue Opportunity with OEV
**Lending protocols are operating at a massive disadvantage.** Despite running continuously 24/7/365, these protocols generate less revenue than what could be captured in just **one day of Oracle Extractable Value (OEV)**. **The revenue gap is staggering:** - Current lending protocol annual revenue < 1 day of potential OEV capture - Protocols continue missing this opportunity by not upgrading oracles - OEV rewards represent untapped value sitting on the table **What is OEV?** Oracle Extractable Value refers to profits that can be captured when oracle price updates create arbitrage opportunities. Traditional oracles don't share this value with the protocols they serve. **The solution is straightforward:** Protocols need to upgrade their oracle infrastructure to start capturing OEV rewards instead of letting this value flow to MEV bots and searchers. This represents one of the largest missed opportunities in DeFi today.
OEV Solutions Prove Their Worth During Market Volatility Weekend
**Market turbulence highlighted the value of Oracle Extractable Value (OEV) solutions** this weekend as traders faced significant losses. - Users without proper OEV protection experienced substantial **bad debt accumulation** - The weekend's volatility demonstrated how much money traders "left on the table" by not implementing working OEV solutions - **Timing proved critical** as market participants with OEV safeguards were better positioned during the downturn The events serve as a **real-world stress test** for OEV technology, showing its practical importance beyond theoretical benefits. *Consider evaluating OEV solutions before the next market event.*
Weekend MEV Losses Mount as OEV Solutions Remain Underutilized
**Significant value extraction occurred** over the weekend as traders and protocols failed to implement Oracle Extractable Value (OEV) solutions. **Key points:** - Market participants left substantial profits on the table - Working OEV solutions were available but not widely adopted - The weekend's events highlight the **proven worth** of OEV technology **Market impact:** - Bad debt accumulation became a concern for some protocols - Times of high volatility expose the **critical need** for proper OEV infrastructure The situation demonstrates how **preparation and proper tooling** can mean the difference between profit and loss in volatile market conditions.
🔵 Vault Milestone

**OEV-Boosted Morpho Vaults** have crossed the **$20M deposit milestone**, marking significant growth from the $10M reached in July. The vaults offer: - Low-risk exposure with real yield generation - OEV (Oracle Extractable Value) recapture technology - Partnership with Yearn Finance Morpho plans to expand with **more chains and markets** while focusing on enhanced curation. The platform positions itself as delivering sustainable, high yields through innovative MEV capture mechanisms. [Access the vault](https://app.morpho.org/ethereum/vault/0x68Aea7b82Df6CcdF76235D46445Ed83f85F845A3/oev-boosted-usdc)
RLP/USD Oracle Feed Goes Live on API3
**RLP token now has live price feeds** through API3 oracles, providing transparent multi-source pricing across 40+ blockchain networks. **Key details:** - RLP serves as the risk-bearing layer for USR stablecoin - Token holders earn yield by absorbing systemic risk - Available on [API3 Market](https://market.api3.org) This follows the earlier launch of RESOLV/USD feeds in July, expanding Resolv Labs' oracle infrastructure for their DeFi ecosystem.