Deep Dive
1. OEV Network Integration (2024)
Overview: The OEV Network allows DeFi protocols to recapture value traditionally lost to MEV (maximal extractable value) during oracle updates. This update shifts profits from third-party searchers back to dApps via a dedicated auction mechanism.
API3’s OEV Network uses a first-party oracle design, enabling direct participation from data providers. For example, when a price feed update triggers liquidations, the protocol auctions the right to update the feed, redistributing fees to the dApp’s treasury.
What this means: This is bullish for API3 because it directly monetizes oracle activity for dApps, creating a sustainable revenue model while improving protocol security. (Source)
2. Cross-Chain Adaptors (July 2024)
Overview: API3 introduced adaptors to streamline oracle integrations across EVM-compatible Layer 2 chains like Metis and Aurora. These tools reduce code refactoring needs by abstracting chain-specific logic.
Developers can now deploy API3’s price feeds on networks like Polygon zkEVM and Unichain with minimal adjustments. The adaptors also support real-time data via Pyth and API3’s Airnode infrastructure.
What this means: This simplifies building multi-chain DeFi apps, potentially accelerating API3 adoption as Layer 2 ecosystems expand. (Source)
3. Developer Workshops (2024)
Overview: API3 partnered with Layer 2 chains to host workshops focused on oracle integration, flash loans, and OEV strategies. These sessions include deploying Aave forks and bidding on liquidation opportunities via the OEV Network.
The curriculum emphasizes practical skills, such as using adaptors to merge API3 feeds into existing codebases and optimizing MEV recapture.
What this means: By upskilling developers, API3 strengthens its ecosystem and incentivizes long-term usage of its oracle stack. (Source)
Conclusion
API3’s recent updates prioritize monetization for dApps, cross-chain accessibility, and developer education—key drivers for oracle adoption in a competitive market. How will these improvements impact API3’s market share against established players like Chainlink?