A project with huge potential API3 DAO

Fyck...M2Dr

26 Jan 2024

📌 @API3DAO A decentralized oracle network built on the $ETH network

✦The aim of the project is to provide much more profitable and faster oracle service to users and protocols by developing OEV, which is a subset of MEV.

You will understand the importance of this better in the following sections of the article.

📌First of all, let's talk about MEV

✦MEV = Financial value that can be obtained from transaction steps performed on the Blockchain

✦It is caused by many factors such as transaction order, behavior of smart contracts, interactions between transactions

▸Perfect for manipulation

📌We can give one example of the beneficial use of MEV, Flashbots' "efficient MEV" service, which allows miners and users to communicate during the transaction order.

▸Aside from that, MEV is one of the most manipulative tools that needs to be solved

API3 is also after this

📌 @API3DAO It uses its own developed OEV Network solution. We can call this an "improved" version of OEV, which is a subset of MEV.

The "lost" value that will go to third parties is captured through oracles and returned to the platform, minimizing the loss.

▸So, unlike the classic MEV system with oracles, OEV Network captures the lost amount and returns it to the dApp.

You can think of this as a "protective circulation".

✅Result: Losses in MEV are minimized and most of the money is returned to the platform.

📌 @API3DAO Protocols using their oracles keep the money in-house rather than falling victim to MEV bots.

✦This situation also prevents a kind of "fee wars".

🚨If you are wondering how much money the protocols may have lost to MEV

📌 @aave Lost over $100M to MEV

The total loss in the sector is close to 1 billion dollars.

🚨These numbers emphasize the importance of the issue even more.

✨The aim of OEV solution developed by API3 is to prevent these losses in a completely "decentralized" way.

📌API3 prevents major losses that may occur thanks to OEV Network compared to Chainlink.

✦Protocol/user friendly API3 oracles will definitely become much more common

🌟Also, they will have a surprise at ETHDenver, I'm looking forward to it. There will be a lot of talk.

📌So, aren't there any other projects developing OEV?

✦Of course there is. One of the most important @UMAprotocol 's recently released Oval tool

But there are fundamental differences between them and I think API3 is much better in this regard.

-Oval is only available on flashbot mev-share supported chains, API3 is on every chain where data streams are possible
-Oval has to rely on MEV-Share RPC as well as Oval-RPC, which is managed by a "central" structure. This moves it away from decentralization
-Oval only auctions basic chainlink updates, while API3 includes additional updates and offers a much more detailed auction

If you want to get more information about Oracle extractable value (OEV), you can also read this medium article.
--> https://medium.com/api3/oracle-extractable-value-oev-13c1b6d53c5b

📌In summary, API3 is a project that can create a revolution. That's why it's a project worth following.

$API3 is listed on more than 40 exchanges. I cannot give advice for investment, but I strongly recommend that you follow such a potential project.

Web page : https://api3.org/