DeFi
Pyth Network Launches New DeFi Tool to Reduce MEV and Return Millions to dApps
Key points to remember
- Express Replay directly connects DeFi protocols to researchers, eliminating costly miners.
- The tool has been integrated by major players such as Flow Traders, Wintermute, Synthetix and Zerolend
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Pyth Network has officially launched Express Replay, a new decentralized solution designed to mitigate miner-mined value (MEV) and reduce costs for DeFi protocols, according to a press release shared by the team on Thursday.
Pyth Network’s Express Replay aims to solve the MEV problem in DeFi transactions, which allows miners to capture most of the value from miners, resulting in higher costs for protocols and users.
“Express Relay is a natural evolution of Pyth’s core oracle production, aiming to reduce value extraction by intermediaries and improve the efficiency of liquidation execution, effectively tackling this form of MEV,” said Tim Wu, Head of DeFi at Wintermute, one of the solution’s early adopters.
The tool connects DeFi protocols to a network of researchers via auctions, removing miners from the equation and allowing researchers to compete “more aggressively” for transaction opportunities, Pyth Network detailed. The researcher with the most competitive bids wins the transaction rights.
Express Relay can improve the efficiency and fairness of DeFi operations because more competitive auctions ensure that researchers and protocols share value more fairly. DeFi protocols can save money on setting liquidation rewards and other critical operations.
The tool’s setup not only reduces operational costs, but also accelerates the integration of new protocols and streamlines processes for existing protocols. Permissionless integration allows any DeFi protocol or search engine to participate.
Major industry players like Flow Traders, Wintermute, Auros, Flowdesk, Caladan, Tokka Labs and Swaap Finance have already adopted Express Replay.
“With the introduction of Pyth Express Relay, a new protocol is available to enable efficient and transparent execution of liquidations,” said Michael Lie, Global Head of Digital Assets at Flow Traders.
Besides these researchers, several protocols, such as Synthetix, Zerolend, Ionic, Synonym, Keom, Jax Finance, Vela Exchange, and Fulcrom Finance, have integrated the tool into their systems to improve market liquidity and transaction efficiency.
“The integration with Express Relay enhances our ability to provide deep liquidity for on-chain derivatives,” said Matt Losquadro, Senior Contributor at Synthetix. “Synthetix can streamline liquidations and optimize capital efficiency, further strengthening our perpetual futures markets.”
“ZeroLend is proud to partner with Express Relay to offer MEV-free transactions on our platform. This collaboration reinforces our commitment to delivering a secure and efficient lending experience that saves our users money,” said Ryker, Founder of ZeroLend.
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