1) API3 is an innovative first-party oracle that announced the launch of OEV’s zk layer2 yesterday. OEV is a subset of MEV and refers to the extractable value associated with an oracle. When the oracle provides the latest price to the Dapp, there will be opportunities for liquidation and arbitrage of some assets. Layer 2 of API3 specifically captures the value of OEV and feeds it back to Dapp so that it can enjoy the benefits.
2) This is mainly due to the fact that the API is a first-party oracle. In other words, API3’s oracle data does not require third-party aggregation and transfer, but is directly provided by the first party of data sources. This is achieved through the core component Airnode, which allows API providers to easily run their own oracle nodes without the need for middlemen to publish data sources (dAPIs) directly to any dApp interested in its services.
3) The circulating supply of API3 is 100 million, of which 65.54 million are pledged. There are 13.86 million coins in the exchange. According to on-chain surveys, the largest net inflow of recharges in the past seven days is the Binance wallet, with a total inflow of 760,000 coins. The largest outflow was from pledge addresses, with a total of 560,000 coins flowing out. But compared to the total number of pledges, it is less than 1%. It can be said that there was no severe selling pressure during the sudden pullback in the past two days.
Note that API has recently increased by 100%. Please make your own investment decisions based on your own risk capabilities.
1 API3 introduction
API3 is an innovative project aimed at revolutionizing the field of blockchain oracles. Its core goal is to solve the problems of existing third-party oracles through first-party oracles. API3 is implemented through its Airnode technology, and its nodes are hosted in the API provider's infrastructure, which means that the oracle data does not require intermediary aggregation and transfer, but is directly provided by the first party. This approach aims to improve data transfer privacy, cost efficiency, source transparency, and more. More importantly, there is no need for a cross-chain bridge to serve as an intermediate transit to prevent frequent hacking incidents.
Main features and highlights of the project
First-party oracle: API3 enables API providers to directly host oracle nodes through Airnode, improving data transparency and credibility.
Privacy protection: The API provider operates the oracle by itself, and third parties cannot observe the original data processing of the API, thus significantly improving privacy protection.
Cost efficiency: Intermediaries are reduced, the cost of data provision is reduced, and the overall efficiency of the system is improved.
Source transparency: visible data sources on the chain, ensuring data transparency and credibility.
2 Airnode
Airnode is the core component of the API3 project, which allows API providers to easily run their own oracle nodes and directly publish data sources (dAPIs) without middlemen to any on-chain decentralized applications (dApp) interested in its services. Airnode's design philosophy is to provide API providers with almost zero-maintenance deployment capabilities. It aims to drive meaningful use cases by simplifying the connection of APIs to the blockchain, giving smart contract engineers easy access to the data they need.
Airnode is designed as a lightweight wrapper for Web APIs, enabling it to communicate with smart contract platforms without incurring any overhead or payment token friction. Airnode's design is based on the "set and forget" principle, requiring no specific operating knowledge and providing excellent resistance to permanent downtime and operational intervention. The service is built on on-demand pricing, allowing node operators to pay only for node usage, offering API providers the possibility to run oracles for free.
3 dAPI
dAPIs (Decentralized APIs) are a key component of the API3 project and are on-chain data sources provided by first-party oracles owned and operated by the API providers themselves. These data sources are continuously updated using signed data by first-party oracles, allowing dApp owners to read the on-chain value of any dAPI in real time. dAPIs consist of a beacon or a set of beacons and are sometimes called first-party data sources because they originate from first-party oracles. At its core, dAPIs connect smart contracts to first-party data sources, providing greater security, cost efficiency, and scalability.
dAPIs are maintained and supported directly by the owners of the data, the API providers, effectively eliminating the third-party middlemen that other oracle solutions rely on. Its operation is efficient and flexible, and dAPIs are built on an on-demand pricing service, allowing API providers to run oracles for free and only start paying when they start generating revenue. It has a standardized, user-friendly interface: dAPIs have a standardized, user-friendly interface that aims to abstract away technical implementation.
4 OEV Network
Oracle Extractable Value (OEV) is a subset of MEV and refers to those extractable values associated with Oracle services. In DeFi applications, data provided by oracles are often used to determine the price of assets, perform liquidation, or other key functions. When oracles update the data they provide to smart contracts, these updates can affect the state of DeFi markets, creating opportunities for arbitrage or liquidation. When oracle updates occur, certain participants may attempt to exploit these opportunities to extract value from market participants such as liquidity providers. According to Flashbots statistics, the revenue captured by MEV reaches hundreds of millions of dollars every year.
OEV network is a zk rollup network customized with Polygon CDK, which is used to capture OEV in all Dapps using API3 data sources. OEV network is a specialized order flow auction platform that sells the right to execute updates to specific data sources for a specific Dapp to the highest bidder. Winners pay when data source updates are performed, allowing decentralized applications to receive revenue immediately on their native chain. This all runs as an adjunct to our regular data sources, meaning decentralized applications using API3 data sources will be able to simply enable the OEV network and start earning revenue.
5 Token Economics
The total supply of API3 is 127 million, the circulating supply is 1.02, and the circulating market value is US$300 million.
Judging from the on-chain data, the largest position is the API3 pledge pool.
Position address 1: API3 pledge address
Position address 2: National Treasury
Position address 3: Binance cold wallet
Position address 4: transferred in December 2022, not moved
Position address 5: Binance wallet
Position address 6: coinbase wallet
Position address 7: ok wallet
Position address 8: coinbase wallet
Position address 9: upbit wallet
Position address 10: Binance wallet
Judging from the on-chain data, up to 65.54 million API3s are placed in the pledge pool, and there are approximately 13.86 million tokens in the exchange. The two items add up to 79 million coins. Apart from these two items, there are not many chips circulating outside.
Since the currency price has fluctuated violently in the past two days, we check the address changes in the last seven days from the scope. The largest inflow was from the recharge address of Binance 14, with a total net inflow of 760,000 coins, and the address on the second day of inflow was the coinbase wallet, with an inflow of 627,000 coins. The largest outflow was from pledge addresses, with a total of 560,000 coins flowing out.
But in general, although there is inflow and outflow, the overall volume is not large. In particular, 560,000 pieces were outflowed from the pledge wallet, which is less than 1% compared to the total number of pledges of 65.54 million. It can be said that there was no severe selling pressure during the sudden pullback in the past two days.
You can see the specific situation
https://www.scopescan.ai/token/0x0b38210ea11411557c13457d4da7dc6ea731b88a?network=eth&pp=ryxc
