API3’s Oracle Stack is Live on Bitlayer

We are excited to announce that API3’s Oracle Stack is available on Bitlayer, 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 Bitlayer 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 Bitlayer 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.

Bitlayer is the first bitcoin security-equivalent Layer 2 based on the BitVM paradigm aiming to act as the computational layer for Bitcoin. Bitlayer is a Layer 2 solution designed to enhance the Bitcoin network by providing EVM compatibility and Turing completeness while utilizing BTC as the native gas token. This allows it to integrate and support applications and tools from the Ethereum ecosystem, enabling developers to easily migrate and deploy Ethereum-based smart contracts and projects to Bitlayer without needing substantial changes to battle tested code.

Bitlayer extends Bitcoin’s functionalities to include programmable decentralized computing capabilities similar to those found in Ethereum, but with the intention of offering a potentially cheaper and faster experience. This is backed by the same level of security that the Bitcoin network provides.

The platform supports a variety of developer tools familiar from the Ethereum ecosystem, such as Ethereum JSON-RPC and Hardhat, facilitating a low-cost, seamless transition of projects from Ethereum to Bitlayer. Bitlayer aims to unlock and transform Bitcoin beyond its status as digital gold to a productive asset that could serve as the bedrock for the entire decentralized economy. This includes supporting emerging sectors like NFTs, DeFi, blockchain gaming, and DePIN.

Developers looking to utilize dAPIs on Bitlayer 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 Bitlayer. This solution makes it easy for dApps to quickly and easily migrate to Bitlayer 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 Bitlayer, 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 Bitlayer 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 Bitlayer. 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.