DeFi
Pyth Network Tackles MEV and Increases Economics for DeFi Applications with Launch of Express Relay
Pyth Network’s Express Relay is revolutionizing DeFi by eliminating MEV and improving transaction efficiency for protocols and users.
Pyth Networka provider of real-time market data for blockchain applications, has launched its latest product, Express Relay, on mainnet. This innovative solution addresses the long-standing problem of miner extractable value (MEV) in DeFi transactions, particularly liquidations and operations improving market efficiency.
The Express Relay system connects DeFi protocols directly to a network of established researchers via protocol-controlled auctions for value transactions. Researchers already using Express Relay include Flow Traders, Wintermute, Auros, Flowdesk, Caladan, Tokka Labs, and Swaap Finance.
MEV occurs when miners or validators capture the majority of the value of researchers’ DeFi transactions by prioritizing their block space tips. With Express Relay, the most competitive researcher wins the right to complete the transaction, effectively eliminating miners from the process. This allows researchers to compete more aggressively for transaction value, allowing DeFi protocols to increase their liquidation reward incentives. Express Relay fosters a fairer DeFi industry by allowing protocols to save money, which can be used for other initiatives or passed on to users.
DeFi protocols using Express Relay can significantly reduce the costs associated with critical operations such as setting liquidation rewards by eliminating the extractive role of miners in ordering transactions. Protocols such as Synthetix, Zerolend, Ionic, Synonym, Keom, Jax Finance, Vela Exchange, and Fulcrom Finance integrate with Express Relay to mitigate the impacts of MEV. Together, these applications represent $1 billion in total value locked across 11 blockchains.
Improved DeFi transaction efficiency
New protocols can streamline their deployment through Express Relay’s established researcher network. Integrating with Express Relay reduces the need for protocols to invest heavily in developing their own liquidator and researcher networks. For researchers, Express Relay consolidates liquidation and other valuable DeFi transaction opportunities across multiple protocols and blockchains, reducing the time and cost of individual negotiations and integrations.
In line with the principles of decentralization, DeFi protocols and researchers can integrate with Express Relay in a permissionless manner by adding a few lines of code.
Pyth Network contributors from Douro Labs and Pyth Data Association publicly presented Express Relay for the first time at the inaugural conference Agora Pyth Summit 2024 during the Ethereum Community Conference July 11. The Express Relay primitive is powered by the Pyth DAO.
“Liquidations are inherently difficult to execute efficiently. With the introduction of Pyth Express Relay, a new protocol is available to enable efficient and transparent execution of liquidations. Market makers like Flow Traders can provide deep liquidity to markets during moments of liquidation. When looking for partners in our ecosystem to collaborate with, we look to play an active role in furthering our mission of creating more efficient markets. That’s why we’re excited to be a part of this new initiative and continue our engagement with Pyth, which has now been many years in the making.” — Michael Lie, Global Head of Digital Assets at Flow Traders.
“Express Relay is a natural evolution of Pyth’s core oracle production. It aims to reduce value extraction by intermediaries and improve the efficiency of liquidation execution, effectively tackling this form of MEV. Contributing to a system where researchers and protocols interact with aligned interests reinforces our mission to advance a truly decentralized world with more transparent and efficient markets. We are excited to be a part of this initiative,” said Tim Wu, Head of DeFi at Wintermute.
“The integration with Express Relay enhances our ability to provide deep liquidity for on-chain derivatives. By leveraging Express Relay’s auction system, Synthetix can streamline liquidations and optimize capital efficiency, further strengthening our perpetual futures markets. This collaboration is in line with our mission to enable robust and reliable derivatives trading in DeFi.” — Matt Losquadro, Senior Contributor at Synthetix.
“ZeroLend is proud to partner with Express Relay to offer non-EV transactions on our platform. This collaboration reinforces our commitment to providing a secure and efficient lending experience that saves our users money.” — Ryker, Founder of ZeroLend.
About Pyth Network
Pyth Network is a purpose-built Oracle solution designed for latency-sensitive financial data, typically confined within the “walled gardens” of centralized institutions. Pyth Network aims to securely integrate this unique data on-chain in an innovative and cost-effective way. To learn more about Pyth Network, visit pyth network.