API3 has launched the OEV network in its ecosystem. On July 9, API3 tweeted that this integration with its Oracle stack would allow every lending platform supported by API3 to receive the total value of every transaction made on the blockchain.
The OEV network is a new technology that helps Oracle services and their users work together to minimise the negative impact of Oracle extractable value. This technology aims to prevent dApps from losing millions due to liquidation and instead benefit from the value they create.
It does this by holding auctions where people bid on important updates, with the highest bidder receiving the update first. However, the dApps that created the value in the first place will get all proceeds from the auction.
In the system, the value created by the dApps gets returned to them rather than exploited by the OEV. Thus, API3’s ecosystem would better position itself to associate with the working of this Oracle network. That way, they can give better transparency into returning created value to the dApps.
At launch, multiple lending protocols have already made their way into the OEV network across chains like INIT Capital and Orbit Protocol. According to API3, this new introduction will change how their oracle landscape and lending platform begin to work.
Following this news, API3’s price increased by 6% within 24 hours, as per CoinMarketcap. This demonstrates a significant increase in the platform’s value and reassuring its users of its potential growth.
OEV network, a million-dollar opportunity
Yearly, lending platforms like Venus and Aave pay millions of dollars in liquidation bonuses to ensure their protocols run smoothly. However, this launch ensures lending protocols can save millions yearly that they would have otherwise lost to OEV.
With the OEV network, lending protocols available on the API3 blockchain will now be able to recapture value, giving them more time to BUIDL. This latest introduction not only highlights API3’s commitment but also instils confidence in its ability to create solutions that address significant value loss among protocols.
Related | CoinDCX acquires BitOasis, expanding into MENA crypto market
