API3 Unveils OEV Network to Enhance DeFi Value Capture at EthCC 7

API3, a provider of DeFi data feeds to blockchain-based smart contracts, has unveiled its oracle extractable value (OEV) network at EthCC 7 in Brussels, Belgium. This innovative on-chain solution aims to recapture value lost to third parties due to maximal extractable value (MEV).

API3’s OEV Network: A Revolutionary Onchain Solution

The OEV Network is designed to allow decentralized applications (dApps) to reclaim value that is often leaked during oracle updates. API3’s product owner, Ugur Mersinlioglu, highlighted that the current system results in valuable updates being lost to researchers and builders. The new network ensures that this value returns to the originating dApp, supporting sustainable revenue generation, increased user yield, or reduced fees.

Addressing the MEV Issue

Oracles have traditionally ignored the issue of value loss due to MEV. API3’s OEV Network changes this by creating a layer where valuable updates are auctioned off, enabling dApps to profit from their data. This is particularly crucial for liquidations, which can amount to tens of millions of dollars annually.

API3 Secures $4M in Funding

In May, API3 secured $4 million in a funding round led by DWF Labs, with additional contributions from Spartan Group, Laser Digital, and Caladan (formerly AlphaLab).