API3 Launches New Public Chain, Targeting the Overlooked Billion-Dollar OEV Market

Introduction

1) API3, an innovative first-party oracle, announced yesterday the launch of zk layer2 for OEV. OEV is a subset of MEV, referring to the extractable value related to oracles. When oracles provide the latest prices to Dapps, there are opportunities for liquidation and arbitrage. API3’s layer2 specifically captures the value of OEV and feeds it back to Dapps to enjoy the benefits.

2) This is mainly due to API3 being a first-party oracle. In other words, the data from API3’s oracles doesn’t need to go through a third-party aggregator but is provided directly by the data source. This is achieved through the core component Airnode, which allows API providers to easily run their own oracle nodes, directly publishing the data sources (dAPIs) to any dApp interested in their services without intermediaries.

3) API3 has a circulation of 100 million, with 65.54 million in staking. Exchanges hold 13.86 million, and according to on-chain surveys, the largest net inflow in the last 7 days was to Binance wallets, totaling 760,000. The largest outflow was from staking addresses, totaling 560,000. However, this is less than 1% of the total staked amount. It can be said that the sudden market surge in the past two days did not result in significant selling pressure.

Note: API has recently seen a 100% increase. Invest at your own risk according to your risk tolerance.

About API3

API3 is an innovative project aimed at reforming the blockchain oracle space. Its core goal is to address the issues with existing third-party oracles through first-party oracles (First-party Oracles). API3 implements this through its Airnode technology, with nodes hosted on the API provider’s infrastructure, meaning oracle data does not need a middleman for aggregation and transfer, but is provided directly by the first party. This approach aims to improve data transmission privacy, cost efficiency, and source transparency. More importantly, it eliminates the need for cross-chain bridges as intermediaries, preventing frequent hacking incidents.

Key Features and Highlights:

1. First-party Oracles: API3 enables API providers to directly host oracle nodes through Airnode, improving data transparency and credibility.
2. Privacy Protection: API providers operate the oracle themselves, preventing third parties from observing the original data processing, significantly enhancing privacy protection.
3. Cost Efficiency: By reducing intermediaries, the cost of data provision is lowered, and the overall efficiency of the system is improved.
4. Source Transparency: On-chain visible data sources ensure the transparency and credibility of data.

Airnode

Airnode is the core component of the API3 project, enabling API providers to easily run their own oracle nodes and publish data sources (dAPIs) directly to decentralized applications (dApps) on any interested blockchain, without intermediaries. Airnode’s design philosophy offers API providers the ability to deploy with almost zero maintenance. It aims to simplify the connection between APIs and blockchains, enabling smart contract engineers to easily access the data they need, thereby facilitating the realization of meaningful use cases.

Airnode is designed as a lightweight wrapper for Web APIs, enabling communication with smart contract platforms without incurring any overhead or token friction. Based on the “set and forget” principle, it requires no specific operational knowledge and has excellent resistance to permanent downtime and operational interference. Built on a pay-as-you-go service, it allows node operators to pay only for node usage, providing the possibility for API providers to run an oracle for free.

dAPI

dAPIs (Decentralized APIs) are a key component of the API3 project, representing on-chain data sources owned and operated by the API providers themselves, through first-party oracles that constantly update the data with signed data. This allows dApp owners to read the on-chain value of any dAPI in real-time. dAPIs consist of one or more beacons, sometimes referred to as first-party data sources, as they originate from first-party oracles. At the core of dAPIs is the connection of smart contracts to first-party data sources, offering higher security, cost efficiency, and scalability.

dAPIs are maintained and supported directly by the data owners, i.e., the API providers, effectively eliminating the third-party intermediaries that other oracle solutions rely on. They are operationally efficient and flexible, built on a pay-as-you-go service that enables API providers to run an oracle for free and only start paying once they begin generating revenue. They feature a standardized, user-friendly interface designed to abstract away the technical implementation.

OEV Network

Oracle Extractable Value (OEV) is a subset of Miner Extractable Value (MEV) that pertains to the extractable value related to oracle services. In DeFi applications, the data provided by oracles is often used to determine the prices of assets, execute liquidations, or other critical functions. When oracles update the data they provide to smart contracts, these updates can affect the state of the DeFi markets, thereby creating opportunities for arbitrage or liquidations. At the time of oracle updates, certain participants may attempt to exploit these opportunities to extract value from market participants (e.g., liquidity providers). According to Flashbots statistics, the profits captured from MEV reach hundreds of millions of dollars annually.

The OEV network is a zk-rollup network customized with Polygon CDK, designed to capture all OEV from Dapps using API3 data sources. The OEV network is a dedicated order flow auction platform that sells the rights to execute specific data source updates for specific Dapps to the highest bidder. The winner pays a fee when executing the data source update, enabling decentralized applications to receive immediate profits on their native chains. This all runs as an adjunct to our regular data sources, meaning that decentralized applications using API3 data sources will be able to easily enable the OEV network and start earning profits.

Tokenomics

The total supply of API3 is 127 million, with a circulating supply of 102 million and a market capitalization of $300 million.

According to on-chain data, the largest holdings are in the API3 staking pool:

Holding Address 1: API3 Staking Address

Holding Address 2: Treasury

Holding Address 3: Binance Cold Wallet

Holding Address 4: Transferred in December 2022, not moved

Holding Address 5: Binance Wallet

Holding Address 6: Coinbase Wallet

Holding Address 7: OK Wallet

Holding Address 8: Coinbase Wallet

Holding Address 9: Upbit Wallet

Holding Address 10: Binance Wallet

On-chain data shows that up to 65.54 million API3 are placed in the staking pool, and about 13.86 million tokens are in exchanges, totaling 79 million tokens. Excluding these, there are not many chips circulating outside.

Given the recent severe price volatility over the past two days, we examined the address changes in the last seven days using scope. The largest inflow was to a Binance deposit address, with a net inflow of 760,000 tokens, followed by a Coinbase wallet with an inflow of 627,000 tokens. The largest outflow was from the staking address, totaling 560,000 tokens.

However, overall, although there have been inflows and outflows, the total volume is not large. Especially considering the outflow of 560,000 tokens from the staking wallet, this is less than 1% of the total 65.54 million staked. This suggests that the sudden market surge in the past two days did not result in significant selling pressure.

For more detailed information, please visit www.scopescan.ai

Disclaimer:

This article is reproduced from [mirror], and the copyright belongs to the original author [Ri Yue Xiao Chu]. If there are any objections to the reproduction, please contact the Gate Learn team, and the team will handle it promptly according to the relevant process.

Disclaimer: The views and opinions expressed in this article are those of the author and do not constitute any investment advice.

Other language versions of the article are translated by the Gate Learn team. Without mentioning Gate.io, it is not allowed to copy, disseminate, or plagiarize the translated articles.

On-chain data shows that up to 65.54 million API3 are placed in the staking pool, and about 13.86 million tokens are in exchanges, totaling 79 million tokens. Excluding these, there are not many chips circulating outside.

Given the recent severe price volatility over the past two days, we examined the address changes in the last seven days using scope. The largest inflow was to a Binance deposit address, with a net inflow of 760,000 tokens, followed by a Coinbase wallet with an inflow of 627,000 tokens. The largest outflow was from the staking address, totaling 560,000 tokens.

However, overall, although there have been inflows and outflows, the total volume is not large. Especially considering the outflow of 560,000 tokens from the staking wallet, this is less than 1% of the total 65.54 million staked. This suggests that the sudden market surge in the past two days did not result in significant selling pressure.

For more detailed information, please see:

www.scopescan.ai

Disclaimer：

1. This article is reprinted from [mirror]. All copyrights belong to the original author [日月小楚]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
3. Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited.