One of the altcoins that has seen a significant increase in recent days is API3, which reached $3.3 following our warning yesterday. Although the price has currently turned from the resistance zone, the good news that has just arrived could be supportive in the medium and long term. So, what new product announcement did API3 Coin make?
Why Is API3 Rising?
DeFi protocols benefit from various Web3 service providers, from custodians triggering liquidations to block producers including relevant transactions in blocks. These services are the lifeline for DeFi and incur significant costs. For example, a significant portion of Chainlink‘s revenue comes from DeFi price feeds, and it has almost monopolized this area.
Aave has liquidated positions worth $2 billion over the past three years, with more than $100 million paid out as liquidation premiums. These costs are essential for the system to function correctly, but improvements are possible. API3 is addressing all these issues with its oracle extractable value (OEV), announcing today the OEV Network, a ZK-rollup platform.
“The OEV Network is a specialized order flow auction platform that sells the rights to perform specific data stream updates for specific dApps to the highest bidder. The winner pays for the data stream update and allows the dApp to instantly receive revenues on its native chain. All this works as a side tool to our normal data streams; meaning a dApp using API3 data streams can easily activate the OEV Network and start earning. The OEV Network will be supported by Polygon CDK, a framework for creating specialized ZK-rollups.”
Polygon Co-Founder Sandeep Nailwal said;
“The robust security and customizable structure of Polygon CDK encourages innovative use cases for teams intensely focused on solving unique problems. API3 has always been at the forefront of unique problem-solving, and the OEV network is a significant value unlock for developers in the ecosystem. We are excited about API3 joining the Polygon CDK ecosystem.”
