From Expansion to Impact: What’s Cooking for API3

This year has marked an incredible period of growth for API3, solidifying our role as a leading force in securing the evolving DeFi landscape. As DeFi trends toward the adoption of Layer 2 solutions, API3 has strategically scaled its operations and product offerings to align with this shift. In 2024 alone, we expanded from supporting 16 networks to over 40 and grew our Total Value Secured (TVS) from $20 million to over $600 million. This giant leap underscores our commitment to enabling dApps to easily upgrade their oracle with developer-friendly solutions, providing next-generation oracle infrastructure wherever they are building. 

From navigating the shift to Layer 2s and redefining what lending protocols expect from their oracles to driving sustainable revenue growth through innovations like the OEV Network, we’re setting the standards for how oracles can shape the future of DeFi. 

Navigating the shift to Layer 2s

The DeFi landscape has experienced a significant migration of Total Value Locked (TVL) to L2s this year, driven by the need for faster, more scalable, and cost effective solutions. Over the past year, Layer 2 TVL has more than doubled from under $20 billion to over $55 billion—and we’re still early.

API3 made a decisive move earlier this year to double down on DeFi, positioning itself at the forefront of this shift by supporting leading L2 networks like Blast, Mantle, Mode, Taiko, Sei Network, and Linea among others. By doing so, API3 has proven to be the go-to oracle for developers looking to build without limits and scale quickly. This adaptability ensures that dApps are able to expand to emerging markets without compromising the security of their protocol, like we saw with the recent integration of Compound Finance on Mantle Network.

Redefining what lending protocols want from their oracle

One of API3's biggest achievements in 2024 was the launch of the OEV Network in July. As the first Layer 2 solution engineered to help lending protocols recapture MEV (Maximal Extractable Value), the OEV Network represents a paradigm shift for what dApps are looking for in an oracle. Integrated with all data feeds on the API3 Market, the OEV Network enables lending protocols to maximize their potential revenue by reclaiming value that would otherwise leak to searchers and validators during liquidations.

Top leading protocols like Init Capital on Blast and Mantle, Juice Finance on Blast, Yei Finance on Sei Network, and Lendle on Mantle have already integrated the OEV Network to lock in these gains. These early adopters showcase the game-changing potential of API3’s built-in MEV solution to boost protocol revenue and fuel new opportunities for innovation. By centering its oracle solutions around oracle extractable value (OEV), API3 has redefined what lending protocols should expect from their oracle partners—no longer just providing data but essential allies in maximizing protocol performance.

More TVS = More Revenue

API3's ability to translate growth in TVS directly into revenue is a game-changer. Unlike traditional oracles that simply provide data, API3's integration of the OEV Network across all of its data feeds ensures value recapture is a core part of its offerings. This not only gives us a competitive edge but also redefines how oracles should be evaluated, shifting the industry focus toward sustainable, revenue-generating models instead of relying on token sales to sustain operations.

With TVL on L2 networks expected to surge during the next bull run, API3 is positioned to harness this growth like no other oracle can. The synergy between TVS growth and revenue through OEV Network integration highlights API3’s foresight in building a futureproof business model that moves in lockstep with industry trends and the demands of DeFi protocols.

The Stage is Set

API3 has executed its strategic vision with precision this year, and the stage is set for even greater growth. 

As the market gears up for the next bull run, API3 is ready not just to capture more TVS across the expanding L2 landscape, but to set new benchmarks for what next-generation oracle solutions can achieve. With OEV Network already reshaping the expectations of what oracles can deliver, and new partnerships on the horizon, API3 is poised to solidify its position as a trailblazer in moving DeFi forward. 

You’re going to love what’s coming next.