API3 Launches First-Party Oracle Infrastructure on Berachain – BitRss

API3 has announced the availability of its first-party oracle infrastructure on Berachain, providing developers with access to over 190 data feeds on the API3 Market and the OEV Network. This integration allows developers to recapture protocol Maximum Extractable Value (MEV) due to oracle updates. The infrastructure offers verifiable, multi-source, decentralized data feeds (dAPIs) powered by first-party oracle nodes operated directly by data providers.

The integration of the OEV Network with all of API3’s data feeds on Berachain offers a built-in solution for recapturing MEV. Instead of protocols losing value to searchers and block builders, the proceeds from oracle update auctions are returned to the decentralized application (dApp) where the value originated. This leads to improved execution for users and enhanced protocol performance for dApps.

Berachain’s Unique Features and Compatibility

Berachain is a high-performance, Ethereum Virtual Machine (EVM)-identical Layer 1 blockchain built on the modular BeaconKit framework. It maintains full compatibility with the EVM, supporting existing execution clients like Geth, Reth, and Nethermind. This ensures that Berachain can adopt Ethereum upgrades immediately, maintaining compatibility with all EVM-based tools and infrastructure.

A key innovation of Berachain is its Proof-of-Liquidity (PoL) consensus mechanism. PoL prioritizes liquidity and application growth over traditional validator rewards, enhancing trading efficiency, price stability, and security. This approach aligns the interests of validators, protocols, and users for long-term sustainability. Native applications like BeraSwap demonstrate how developers can leverage this model to build new financial primitives on Berachain.

Advantages of API3’s Oracle Architecture

API3’s first-party oracle architecture maintains data onchain directly from data providers, eliminating rent-seeking intermediaries. This decentralized and verifiable design offers a secure and efficient method for bringing data onchain. dAPIs provide ease of use for dApps and chains requiring oracle services, allowing them to read data natively maintained on Berachain without managing their own infrastructure.

The OEV Network creates an efficient market where oracle service providers and searchers collaborate to mitigate the negative impact of MEV through specialized order-flow auctions. This application-specific solution captures all MEV created at the protocol level due to oracle updates and returns it to the dApp that generated the value. This improves the health of lending and borrowing dApps and allows them to capture significant financial opportunities.

For more information, the full announcement can be found here.

Why This Matters: Impact, Industry Trends & Expert Insights

API3 has launched its first-party oracle infrastructure on Berachain, providing developers with access to over 190 data feeds and enhancing the ability to recapture Maximum Extractable Value (MEV). This integration aims to improve execution for users and enhance protocol performance for decentralized applications (dApps).

Recent developments in MEV capture highlight the ongoing evolution of blockchain networks to manage MEV more efficiently. The integration of API3’s oracle infrastructure with Berachain aligns with these trends by offering built-in solutions to recapture MEV, potentially improving the overall health and efficiency of blockchain applications.

Proof-of-Liquidity (PoL) consensus significantly enhances blockchain security by integrating liquidity provision into the network’s security model. This supports the sustainability and growth of decentralized applications on Berachain, reinforcing the impact of API3’s integration with its innovative oracle solutions.

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