API3

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 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.

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.

**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 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)

**Maple Finance** has launched a new lending feature allowing users to borrow USDC using their $SYRUP tokens as collateral. **Key Details:** - Available exclusively on [Morpho](https://app.morpho.org/ethereum/market/0x729badf297ee9f2f6b3f717b96fd355fc6ec00422284ce1968e76647b258cf44/syrupusdc-usdc) through Kabu USDC - Users can supply SyrupUSDC as collateral while earning approximately 11-12% yield - USDC borrowing rate is around 56% - The mechanism allows for recursive yield farming, generating an additional ~5% yield with each cycle - Curated by Gauntlet and MEV Capital vaults This integration expands utility for SYRUP holders, enabling them to access liquidity without selling their tokens while continuing to earn yield on their collateral.