finbold.com
Pyth Network, a blockchain market and finance data oracle, has launched its latest product, Express Relay, as per the latest information shared with Finbold on July 11.
Launched on the Pyth mainnet, the new product offers a decentralized solution to Miner Extractable Value (MEV) issued prevalent in decentralized finance (DeFi) transactions.
Express Relay connects DeFi protocols with established searchers through protocol-controlled auctions for high-value transactions, such as liquidations.
Notable searchers integrated with Express Relay include Flow Traders, Wintermute, Auros, Flowdesk, Caladan, Tokka Labs, and Swaap Finance.
Enhancing liquidation on DeFi protocols
MEV allows miners and validators to gain more value from DeFi transactions via blockspace tips.
With Express Relay, however, transactions are awarded to the highest bidding searcher, removing miners from the equation.
Consequently, there is fiercer competition among searchers over transaction value, which enables DeFi protocols to amp up liquidation rewards and savings.
Michael Lie, Global Head of Digital Asset at Flow Traders, remarked on the challenges inherent to liquidations, stating:
“Liquidations are inherently difficult to execute effectively. With the introduction of Pyth Express Relay, a new protocol is accessible to enable efficient and seamless execution of liquidations. Market makers such as Flow Traders can provide deep liquidity to the markets during moments of liquidation. When we seek our ecosystem partners to collaborate with, we aim to have an active role in furthering our mission to create more efficient markets. Therefore, we are thrilled to be part of this new initiative and further our engagement with Pyth, which is now many years in the making.”
Protocols like Synthetix, Zerolend, Ionic, Synonym, Keom, Jax Finance, Vela Exchange, and Fulcrom Finance have already adopted or are integrating with Express Relay, collectively managing over $1 billion in total value locked (TVL) across 11 blockchains.
More efficient DeFi transactions
New protocols can deploy faster by leveraging Express Relay’s searcher network instead of burning resources on developing their own networks.
To expedite the process, Express Relay aggregates valuable DeFi transactions across various protocols and blockchains, simplifying access and reducing negotiation costs.
In the spirit of blockchain, integrating with Express Relay is permissionless, requiring only minimal code adjustments.
Tim Wu, Head of DeFi at Wintermute, expressed his enthusiasm for the initiative, emphasizing his team’s devotion to a more transparent market:
“Express Relay is a natural progression from Pyth’s core oracle production. It ambitiously serves to reduce value extraction by intermediaries and improve liquidation execution efficiency, effectively tackling this form of MEV. Contributing to a system where searchers and protocols interact with aligned interests furthers our mission to advance a truly decentralized world with more transparent and efficient markets. We are excited to be part of this initiative.”
Pyth Agora 2024 summit
Pyth Network representatives from Douro Labs and Pyth Data Association introduced Express Relay at the Pyth Agora 2024 summit during the Ethereum Community Conference on July 11.
Among other topics, the summit saw mention of the importance of incentivizing users to stay on the blockchain.
By tackling the MEV issue head-on, Express Relay promises to create a more efficient, transparent, and user-friendly DeFi environment.
Offering better returns and a more equitable experience, these benefits affect end-users the most.
Additionally, the permissionless integration process makes it easier for protocols to adopt Express Relay, fostering a more inclusive and dynamic DeFi ecosystem across the board.