Mission O.E.V #2
Period: September 2024 – November 2024 (3-months)
Amount: $946,984.86 USDC
Destination: Gnosis Safe (Multi-sig wallet)
Address: 0x8e03609ed680B237C7b6f8020472CA0687308b24
# Recap of Last Cycle
Launch of OEV Network
During the past cycle OEV Network was launched, incorporating an OEV recapture mechanism natively into all API3 dAPIs. Developers utilising API3 oracles are not only getting verifiable data straight from the source, but also have the chance to be paid for any opportunities that arise on their application.
After initially committing to a deployment of OEV Network with the CDK Framework, our partners Caldera were able to quickly accommodate our need for a fast and scalable solution by offering to deploy OEV Network on the Arbitrum Orbit Stack. Since the deployment of the OEV Network there have been no incidents and OEV auctions are conducted and confirmed nearly instantly. Over 12.000 transactions have been made to the OevAuctionHouse contract to date.
After the successful launch, searchers were able to bid for oracle updates on all dApps that currently utilise API3 dAPIs, of which two protocols have been successfully integrated. This means that e.g. liquidation transactions on these protocols are almost exclusively being performed with OEV updates (below details for Lendle on Mantle).
Events
During this cycle, we’ve been quite busy in showing presence across numerous events throughout the world. You were able to find API3 in Brussels during ETHcc as well as numerous supporting events like the Modular DeFi Day, where we’ve participated in panel discussions around MEV solutions together with Flashbots and Pyth.
We’ve also been present in Tokyo supporting various events in the Japanese blockchain space in our efforts to grow our presence in the asian crypto community. In July, you were able to find us during EdCon networking and giving developer workshops to introduce OEV Network to the masses. Together with our partners from Zircuit we’ve also organised many networking events further introducing API3 to the Japanese community.
In August, our efforts in Japan continued with participation in DAOTokyo, ETHTokyo, MEVTokyo as well as WebX. We were able to introduce OEV Network to a significant searcher community with a presentation at MEVTokyo as well as to the greater Ethereum and blockchain communities with talks at ETHTokyo as well as WebX.
# Upcoming Cycle
OEV.
At API3, it is our core belief that recapturing OEV is the only possible way to create a sustainable oracle business model with value accrual at its core. As such, we’re committed to doubling down on this belief by optimising our product offering, team and communication to align with this vision. Some of these efforts have already been communicated through e.g. the announcement of discontinuation of QRNG by the end of the year.
The mission for OEV Network is clear: Recapture as much value as possible.
OEV solutions like OEV Network are currently in their infancy and while we see a lot of eagerness to recapture the significant sums of capital that lending protocols are currently bleeding away needlessly, they’re not as eager to be among the first to utilise these solutions. It is our mission to recapture as much as possible of partners that are already utilising OEV Network and to present upcoming prospects with the resulting statistics.
We expect a lot more integrations with OEV Network in the coming months, as the solution continues to prove itself as a reliable means to recapture significant capital for users.
Reclaiming 1 Billion
Another outspoken goal for this cycle is to reclaim $1 Billion in Total Value Secured. While this number doesn’t necessarily reflect any profitability for API3 (or any other oracle project) it helps in terms of creating legitimacy within the space. Selling OEV Network becomes significantly easier if the oracles that it utilises are securing over a billion dollars in value.
Events, Events, Events.
Continuing with the event summary, API3 is going to be present at several locations spreading the word about OEV Network, building important relationships as well as showing thought leadership with talking opportunities across the space.
In the past week, you were already able to find us at the Korean Blockchain Week as well as ETHWarsaw, where we talked about API3, OEV and the future of oracles. The cycle will continue with talking opportunities in Germany at the TUM Blockchain conference as well as Token2049. This cycle will be completed with Devcon in Southeast Asia with important events like the yearly Blockchain Oracle Summit taking place.
# The Numbers
The expenditure during this cycle was close to expectations, with 193,807.54 USDC in unspent funds remaining. We expect the expenditure for the upcoming cycle to be more modest at $1,037,084.00, as this cycle doesn’t include launch activities and reduced event expenditure. Calculating in a buffer of 10% ($1,140,792.40) as well as subtracting the remaining funds from the previous cycle, the ask for this cycle comes to $946,984.86.
| Expense | Amount |
|---|---|
| Grants | $558,584.00 |
| Marketing Expenses | $105,000.00 |
| Event Sponsorships & Travel | $90,000.00 |
| Entrecasa | $45,000.00 |
| Technical Expenses | $51,000.00 |
| VacuumLabs | $105,000.00 |
| API Providers | $82,500.00 |
| — | — |
| Sum | $1,037,084.00 |
| Sum with Overhead 10% | $1,140,792.40 |
| Total minus Remaining | $946,984.86 |
# Explanation of Proposal Parameters:
The destination will be a 3-of-5 multi-signature wallet address managed by Burak, Andre, Ashar, Varia Law and Yondhi AB.
Target contract address is the USDC token contract address, which is 0x8e03609ed680B237C7b6f8020472CA0687308b24
Target contract signature: transfer (address, uint256). This is the function to call on the target contract, which triggers a transfer of USDC tokens.
The parameters stated include the address these USDC are to be sent to, which should match the proposal address, followed by the number of USDC. USDC has 6 decimal places, and solidity is unable to deal with decimal places - hence we add 6 zeros after the proposed USDC number. The number of decimal places can be verified on the USDC contract page of Etherscan - $1.00 | USD Coin (USDC) Token Tracker | Etherscan 1
