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Season 4Episode 149

Learn about Oracles with API3

February 22, 2025
34m

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About This Episode

In this episode of DevNTell, Narb interviews Billyjitsu from API3 to explore the critical role of oracles in Web3 and how API3 is revolutionizing data delivery with first-party infrastructure. Billy shares his personal journey from IT consultant to competitive gamer and self-taught solidity developer, eventually joining the API3 team. The core of the presentation focuses on Oracle Extractable Value (OEV), a groundbreaking solution that allows dApps to recapture value during liquidations that would typically be lost to frontrunning bots and block producers. Billy demonstrates the simplicity of integrating API3's price feeds and showcases real-world results where OEV returned significant value to protocols during high-volatility market events.

Key Takeaways

1

API3 distinguishes itself by providing first-party oracles, meaning data providers push their information directly on-chain, reducing intermediary risk.

2

OEV (Oracle Extractable Value) is a novel concept designed to return fees generated by liquidations back to the protocols themselves rather than MEV searchers.

3

The OEV Network uses a public auction system on a layer-2 chain to grant searchers the right to update oracles in exchange for a fee returned to the dApp.

4

Integrating API3 price feeds into a smart contract is highly efficient, requiring only about 14 lines of code.

5

API3 is currently operational on over 40 EVM-compatible chains, providing widespread support for various decentralized finance ecosystems.

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