Crypto:
30604
Bitcoin:
$62.747
% 4.50
BTC Dominance:
%53.6
% 0.35
Market Cap:
$2.21 T
% 1.97
Fear & Greed:
33 / 100
Bitcoin:
$ 62.747
BTC Dominance:
% 53.6
Market Cap:
$2.21 T

Pyth Network Launches Express Relay to Combat MEV in DeFi

Pyth Network

Pyth Network, a leading provider of real-time market data for on-chain applications, has launched its Express Relay service on its mainnet. This decentralized solution aims to tackle the long-standing issue of Maximal Extractable Value (MEV) in DeFi, potentially saving money for protocols and users.

What is MEV?

MEV refers to the maximum value that can be extracted from block production beyond the standard block reward and gas fees. This is achieved by strategically including, excluding, or reordering transactions within a block.

Express Relay connects DeFi protocols to a network of searchers through protocol-controlled auctions for valuable transactions, such as liquidations. This empowers protocols to potentially eliminate MEV and significantly reduce the cost of critical operations like liquidation rewards.

Searchers are specialized actors who identify and exploit MEV opportunities. In Express Relay, these include prominent names like Flow Traders, Wintermute, Auros, Flowdesk, Caladan, Tokka Labs, and Swaap Finance.

Benefits of Express Relay

Reduced MEV: By enabling competitive bidding among searchers, Express Relay strives to minimize MEV extraction, potentially leading to cost savings for DeFi protocols.

Improved Liquidation Efficiency: The platform facilitates more efficient liquidation execution, potentially benefiting both protocols and users.

More Equitable DeFi Ecosystem: Express Relay promotes a fairer DeFi environment by allowing protocols to redirect saved resources towards user benefits or other productive initiatives.

Streamlined Searcher Integration: The service aggregates liquidation and other DeFi transaction opportunities across various protocols and blockchains, simplifying access for searchers.

Early Adoption and Industry Support

Several DeFi protocols, including Synthetix, Zerolend, Ionic, Synonym, Keom, Jax Finance, Vela Exchange, and Fulcrom Finance, have already begun integrating with Express Relay. This streamlines their liquidation processes and potentially improves capital efficiency.

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MEV is not inherently negative, as it can contribute to market efficiency and incentivize participation. However, it can also raise concerns about fairness, decentralization, and network costs. Express Relay represents one approach among various solutions and protocols aiming to create a more balanced blockchain ecosystem.

Originally designed for Solana, Pyth Network now provides real-time market data for cryptocurrencies, equities, FX, and commodities across over 50 blockchains. This includes major networks like Ethereum, Optimism, Arbitrum, and Base.

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