Let’s talk about the recent hot topics
#预言机 . With the recent overall rise in the oracle sector, attention has been drawn to the important infrastructure track of oracle machines. Except for the demon coin TRB, other coins on the oracle track have experienced increases of 50-400% in the past 1-2 weeks. In the oracle track,
$LINK is leading too much, with a strong first position.
$PYTH has attracted much attention as soon as it went online with the help of Sol's ecological advantages. Its FDV is very high and has a tendency to be second, but its position is not as solid as LINK. Other oracle projects are competing for differentiation and constantly innovating, and perhaps one or two can compete with PYTH. For example,
#API3 , which has been mentioned a lot in the past two days, mainly talks about its two highlights: 1. First-party oracle; 2. OEV. To explain in vernacular, the first party is relative to the third party. For example, LINK is the third party mode. It aggregates multiple third-party data sources to obtain the final data, which is equivalent to adding more processing steps for aggregation calculation. The first party does not need to aggregate data from multiple third parties, and can directly use the data from the first party (also the oracle node) data source. However, aggregation is to combine data from multiple parties, which is fairer and safer. Only first-party data is used. That is what the first party does if it does evil. API3 must have thought of this. The solution is to use DAO governance to evaluate first-party nodes, and these first-party nodes must have certain pledges. In this way, evil behaviors can be restrained. An on-chain insurance mechanism is also set up, so that even if something goes wrong, data users can still receive certain compensation. Personally, I think that the design of the first party has a very small probability of evil, but it still cannot be completely avoided (after all, the cost of evil can be estimated). However, there is currently no oracle mechanism that completely avoids the risk of evil, and LINK’s third parties are not without risks. In terms of efficiency, since there are no aggregation processing steps for first-party data, the efficiency will definitely be higher. It can only be said that the first-party oracle provides a differentiated solution, and users can choose according to their needs based on risk, cost, and timeliness. Another point, OEV, is more interesting. Recently, many oracle projects have been talking about it, saying that it is a type of
#MEV .When it comes to MEV, what everyone thinks of should be miner bribery, front-running, clamp robots, etc. OEV is translated as "oracle machine can extract value." As the name suggests, even oracle machines can also design an arbitrage model similar to MEV. As long as there is a price difference, there is room for arbitrage, and the price feed of the oracle machine is a key link in determining the price, so there is room for manipulation. Pyth, UMA, API3, etc. all mentioned OEV, but the specific way each oracle captures OEV is different, and some are on the way. API3's OEV is unique in that it designs a chain: EOV Network, which is also a zk Rollup L2 chain, through which OEV is captured. Specifically, EOV Network is an order flow auction platform that auctions the execution rights to update specific data sources of specific Dapps. For example, if the Dapp itself or a stakeholder is a bidder, by successfully bidding for the data update rights in #Dapp, the bidder can perform price updates that are beneficial to itself, thereby obtaining OEV income; at the same time, API3 can also obtain auction fee income. The API3 official document specifically mentions the liquidation example of the lending platform $AAVE. The price difference during liquidation will result in a large MEV profit. This part of the profit can actually be partially converted into OEV profit and returned to the Dapp or the user. Personally, I think it is logically feasible to extract OEV revenue from the source of price feeds. At present, OEV is still in its early stages. You can pay attention to the relevant data and more OEV solutions in the future. In short, OEV has indeed added another source of income to the oracle machine, and it is reasonable for the valuation to rise.
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