Oval: Capturing Liquidation Oracle Extractable Value for Lending Protocols

🔒 Liquidation Season Profits

By UMA
May 6, 2024, 5:32 PM
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Oval is a new application built on Flashbots' MEV-Share infrastructure that allows lending protocols to capture Oracle Extractable Value (OEV) generated during liquidations.​ When Chainlink price feeds update and trigger potential liquidations, it creates OEV.​ Oval uses MEV-Share's order flow auctions to allow searchers to bid for the right to backrun these price updates and execute liquidations.​ The winning bid proceeds are then distributed to the lending protocol and oracle providers.​ This system promotes capital efficiency by ensuring liquidators are compensated based on market demand, redirecting up to 90% of OEV back to protocols.​ Over $2.​5M has been lost to OEV on Aave and Compound in the past 30 days alone.​

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Almost 300 ETH is lost to MEV every day. This happens at the expense of everyone in the Ethereum ecosystem. How can we capture MEV and distribute the profits fairly instead? MEV Capture is about building tools that capture MEV and redirect it to the protocols and users that

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Lending protocols can capture liquidation OEV with Oval. This is possible because Oval is built on MEV-Share infrastructure developed by Flashbots. Here’s how it works. Flashbots’ MEV-Share is an open-source protocol designed to capture MEV. It achieves this by efficiently

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Start capturing OEV now with Oval. 🥚 Oval is a plug-and play tool that any EVM lending protocol can quickly integrate without making any contract adjustments. Simply plug in Oval and start getting paid to use your oracle. x.com/UMAprotocol/st…

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Almost 300 ETH is lost to MEV every day. This happens at the expense of everyone in the Ethereum ecosystem. How can we capture MEV and distribute the profits fairly instead? MEV Capture is about building tools that capture MEV and redirect it to the protocols and users that

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