Yesterday’s turbulent market conditions led to a staggering $350 million in Ethereum DeFi protocol liquidations, marking a record high.
Of this total, approximately $20 million was siphoned off by MEV (Miner Extractable Value) robots.
In response to these challenges, API3’s Oracle Extractable Value (OEV) network presents a promising solution. The OEV solution enables lending protocols to recapture value lost to MEV robots, potentially reclaiming a significant portion of the $20 million that would otherwise be lost. This mechanism could substantially boost the earnings of lending agreements by preventing value extraction during extreme market conditions.
API3 stands out for its proactive approach in supporting emerging market oracles and new public chains. While Chainlink, a leading oracle provider, supports 13 public chains primarily focusing on mainstream platforms, API3 covers 37 public chains, including several prominent EVM Layer 2 solutions such as Mantle, Taiko, and Merlin. This broader support highlights API3’s strategic focus on both established and emerging technologies.
今天的极端行情导致了以太坊 DeFi 协议清算金额超 3.5 亿美元，创下清算纪录。而这里面最少有 2000 万美元被 MEV 机器人拿走了。
这时候就不得不提一下 API3 的 OEV (预言机可提取价值) 网络了：API3 的 OEV 解决方案能让借贷协议回收从预言机可提取价值中泄露的价值，将被 MEV 机器人 "薅"… pic.twitter.com/imXRRTYjYw
— 余烬 (@EmberCN) August 5, 2024
Unlike many projects with high FDVs (Fully Diluted Valuation) that experience price dilution due to large-scale token unlocking, API3 has a more favorable circulation profile. With 115 million of its total 137 million tokens in circulation, API3 has an 84% circulation rate . This compares favorably to other projects like Chainlink, which has a 60% circulation rate, and PYTH, with just 36%. This high circulation rate reduces the risk of future inflationary pressure.
Additionally, API3’s staking mechanism is robust, with 48.5% of its total circulating supply staked, offering an impressive annual percentage yield (APY) of 48.2%. This staking rate surpasses the average range of 30-40%, underscoring API3’s strong commitment to incentivizing long-term holding and network security.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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