API3 Launches Next-Generation Oracle Stack on Metis

We are excited to announce that API3’s Oracle Stack is available on Metis, giving developers access to decentralized data feeds (dAPIs) and the soon to be launched OEV Network to recapture protocol MEV due to oracle updates. Developers on Metis can now access decentralized data feeds powered by first-party oracle nodes, which are operated directly by the data providers.

With the launch of OEV Network protocols using API3’s decentralized data feeds on Metis will have a vertically integrated solution for recapturing MEV. Rather than protocols leaking value to searchers and block builders, the proceeds from oracle update auctions are programmatically returned to the dApp where the value originated, leading to better execution for users and better protocol performance for dApps.

Metis is a permissionless Layer 2 network powering the next generation of decentralized applications with simple and fast smart contract deployment. Metis L2 directly addresses the challenges commonly faced on the Ethereum network, such as transaction speed, cost, and scalability. As the first Optimistic Rollup to achieve sequencer decentralization, Metis removes single points of failure and ensures proper alignment of incentives among all network participants. This leads to a secure network, scalable infrastructure, and simple integration.

Metis L2 offers a wide range of benefits that make it an attractive choice for developers. Its permissionless design ensures that anyone can participate freely, enabling true decentralization. The platform’s frictionless architecture reduces barriers between different entities, fostering a seamless user experience. By providing a secure network with a scalable infrastructure, Metis simplifies integration and offers high transaction speed, low gas fees, and affordable onchain storage, making Metis an efficient, cost-effective solution that aligns incentives across all participants.

Developers looking to utilize dAPIs on Metis can visit the API3 Market. The API3 Market provides an easy way to browse, access, and manage a wide variety of data feeds, including crypto, forex, equities, and commodities. With the launch of OEV Network, developers will simply be able to read any data feed, enable OEV Network, and start earning.

Simply Read Verifiable, Decentralized Data to Power dApps

API3’s first-party oracle architecture maintains data onchain directly from the data providers. This decentralized and verifiable design eliminates rent-seeking middlemen and offers a more secure and efficient method for bringing data onchain.

One of the key benefits of dAPIs is the ease of use for dApps and chains requiring oracle services. Rather than having to manage their own infrastructure, dApps can simply read data that is natively maintained on Metis. This solution makes it easy for dApps to quickly and easily migrate to Metis from other EVM-compatible chains, allowing for the rapid adoption and scaling of DeFi ecosystems.

API3’s first-party oracle architecture leverages data directly from the source. The oracle nodes are operated by the data providers themselves, bringing cryptographically signed data onto the blockchain. This allows dAPIs to be verified down to the API parameters and aligns with core principles of the blockchain ethos of transparency and onchain verification.

Protocols like Aave, Compound, and various DEXes all rely on data maintained directly on the consumer chain. API3 addresses this need by maintaining data on the native-chain in a verifiable and decentralized way. With the introduction of dAPIs on Metis, developers gain direct access to a wide assortment of real-world data, including crypto, forex, equities, and commodities straight from the source.

OEV Network: An Application-Specific Solution to Recapture MEV

DeFi protocols that rely on oracles leak a lot of MEV. For protocols like lending dApps, this amounts to millions of dollars a year.

OEV Network creates an efficient market where oracle service providers and searchers come together to combat the negative impact of MEV through specialized order-flow auctions. With OEV Network, searchers don’t need to wait for the price to update onchain, they can trigger the price update when it is most valuable. As an application-specific solution, it captures all the MEV created at the protocol level due to oracle updates and gives it back to the dApp that generated the value.

OEV Network gives every lending and borrowing protocol on Metis a built-in MEV solution by improving upon critical inefficiencies in the current oracle design space. By leveraging the security of a zk-rollup to create an efficient market for oracle updates, it not only improves the health of lending and borrowing dApps but also allows them to capture a multi-million dollar opportunity.

Getting Started with API3’s Oracle Stack

API3’s oracle stack is easy to implement and offers a flexible, scalable solution for developers building on Metis. For those new to dAPIs, a developer Getting Started with dAPIs Video is available to guide you through the API3 Market.

For more information about dAPIs or OEV Network, visit our website, follow us on Twitter, or explore the technical documentation.