The oracle machine track has become lively. I searched for relevant information on Twitter and found that several technical experts are also saying, is the oracle machine market coming? LINK has become popular. In the past six months, the demon coin oracle machine project TRB has gone to heaven.#Pyth(It was listed on Binance yesterday). Last month, UMA cooperated with FlashBots to launch OEV, which also went viral. So I was interested in studying the newly launched OEV Network of API3 a few days ago. The current narrative of API3 seems to be close to this round of big narrative. the taste ofTo summarize the research:The oracle is a DEFI infrastructure application. To put it simply, it cannot work without it. The prices of project tokens on the chain need to be monitored and transmitted in a timely manner. Without it, projects that require price feeding will be finished, such as DEFI lending and transactions. Derivatives, etc.API3 has cooperated with Polygon to launch a ZK Layer2 specifically for OEV. It mainly helps projects connected to api3 capture OEV (oracles can extract value), capture profits for the project, and provide a very considerable source of income. At the same time, API3 will also capture Part of the OEV is used to repurchase and destroy its own Token, forming positive feedback.API3 currently joins a growing number of projects that are already using and testing Polygon CDK, including Libre, Hypr, OKX, Astar, Canto, Gnosis Pay, Immutable, Palm Network, IDEX, and moreFirst we need to understand a conceptThe oracle machine does not feed prices all the time. Every time the oracle machine obtains price and submits data, it needs to pay the gas fee on the chain. The accumulated fees will become very expensive, so high-frequency real-time performance cannot be achieved. There will be a delay spreadWhat is OEV?For example, assuming that the price of ETH has a deviation of 1%, if it is 1000U now, the next update through the oracle will be 990U or 1010U. If the user's clearing price on a certain lending agreement is 1005U, wait until the oracle feeds the price under normal circumstances. It’s already too late, so in order to quickly sell liquidated assets, Defi protocols usually provide huge liquidation bonuses, accounting for 5% to 10% of the total amount. This part is OEVAbout project financing and token situationAPI3 completed 3 million U.S. dollars in financing in 2020. Some well-established institutional placeholders and DCG (Grayscale parent company) led the investment. It was locked for 2 years and then released linearly for 2 years. This year, the release is basically completed. There is another situation to pay attention to, API3 market making The business owner is DWF, and he is quite weird in the industry. Be careful and you may get hurt easily.
