Oval Enables Lending Protocols to Capture Oracle Extractable Value (OEV) through MEV-Share Auctions

By UMA
Mar 7, 2024, 5:02 PM
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Oval, a solution developed by UMA in collaboration with Flashbots, allows lending protocols to capture a significant portion of the Oracle Extractable Value (OEV) generated during liquidations that was previously lost to the MEV supply chain.​ Oval runs order flow auctions in Flashbots' MEV-Share to effectively price liquidations and redirects up to 90% of the OEV back to the lending protocols.​ This helps lending protocols reclaim lost value, improve capital efficiency, and generate revenue from liquidations.​ The integration of Oval with Chainlink Data Feeds simplifies MEV capture without the need for code changes.​

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Oval helps lending protocols capture millions of dollars of free money each year. But MEV capture is only possible thanks to the infrastructure built by Flashbots. Oval is the first application built on Flashbot鈥檚 MEV-Share protocol. Here鈥檚 why that matters.馃馃憞 Flashbots is

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Liquidations are an essential component of DeFi lending. However, they are broken. Current models cause lending protocols to leak millions of dollars of value each year. Oval is a solution to this problem. Read on to learn why. 馃 Permissionless lending is one of DeFi鈥檚 most

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Permissionless liquidations are one of DeFi鈥檚 most crucial innovations. But they鈥檙e broken. To understand why, we must look to one of DeFi鈥檚 most successful use cases: lending protocols. In DeFi, demand for loans is high because people want leverage. Lending protocols can

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MEV is a HUGE topic in the Ethereum ecosystem. With Oval, lending protocols can capture millions of dollars worth of MEV from oracle updates. This is known as Oracle Extractable Value, or OEV for short. Here鈥檚 a quick primer to OEV and how Oval is set to change DeFi forever.

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