API3’s First-Party Oracle Stack is Live on Soneium

We are excited to announce that API3’s Oracle Stack is available on Soneium, giving developers access to over 190 data feeds on the API3 Market and the OEV Network to recapture protocol MEV due to oracle updates. Developers on Soneium can now access verifiable, multi-source, decentralized data feeds (dAPIs) powered by first-party oracle nodes, which are operated directly by the data providers. 

With OEV Network being integrated with all of API3’s data feeds on Soneium, developers will have a built-in 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. 

Soneium is building the backbone of the future internet, a decentralized, user-first ecosystem born from the partnership between Sony Group Corporation and Startale. Designed as a general-purpose blockchain, Soneium bridges the gap between Web2 and Web3, offering scalable, developer-friendly technology that empowers creators, developers, and communities worldwide. With its robust infrastructure and seamless integration of blockchain into everyday services, Soneium simplifies blockchain adoption, unlocking the potential of blockchain technology for a global audience.

Driven by a vision of the open internet that transcends boundaries, Soneium fosters creativity, emotion, and inclusivity. Leveraging Sony’s expertise in entertainment and technology alongside Startale’s Web3 innovation, the platform is uniquely equipped to support diverse applications across gaming, finance, and beyond. By providing intuitive tools, APIs, and compliance resources, Soneium lowers the barrier to entry for developers and mainstream users alike, enabling the creation of user-friendly dApps and compliant global applications. 

Developers looking to utilize data feeds on Soneium can visit the API3 Market. The API3 Market provides an easy way to browse, access, and manage a wide variety of data feeds, including popular cryptocurrencies, LSTs, and stablecoins. 

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 Soneium. This solution makes it easy for dApps to quickly and easily migrate to Soneium 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 Soneium, developers gain direct access to a wide assortment of real-time data 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 lending protocols 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 Soneium a built-in MEV solution by improving upon critical inefficiencies in the current oracle design space. By leveraging the security of a Layer 2 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 Soneium. 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.