Pyth Network launches “Express Relay” to address problem of MEV

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As an analyst with extensive experience in the DeFi space, I am thrilled to see Pyth Network’s latest innovation, Express Relay, address the long-standing issue of Miner Extractable Value (MEV) in a self-sovereign and efficient way.

Pyth Network, a real-time market data oracle platform, unveils Express Relay as a response to address the issue of Miner Extractable Value (MEV) in the cryptocurrency industry.

With the introduction of Express Relay on the mainnet, priority auctions become part of our decentralized finance (DeFi) system, enhancing its autonomy and self-governance.

To address the issue of Miner Extractable Value (MEV), this innovative solution shifts miner responsibilities and facilitates a swifter deployment of new protocols. Simultaneously, Pyth unveiled on Thursday that it will gather worthwhile opportunities in Decentralized Finance (DeFi) for prospectors.

Introducing “Express Relay”: Regain control with priority auctions for a more autonomous DeFi experience! 🔮

— Pyth Network 🔮 (@PythNetwork) July 11, 2024

Addressing the MEV Problem

As a crypto investor, I’ve come across the concept of Miner Extractable Value (MEV), which refers to the profits that miners or validators can extract from their ability to manipulate the order of transactions in a block. This activity results in added costs and inefficiencies for DeFi protocols and users. In simpler terms, it’s like the miners taking advantage of their power to rearrange transactions to pocket extra gains at the expense of the rest of us in the decentralized finance ecosystem.

“Relay by Express addresses the challenges in the Decentralized Finance (DeFi) sector by facilitating innovation through the direct linking of DeFi protocols and established searcher networks. This results in a priority auction system, where searchers vie for the opportunity to carry out crucial operations such as liquidations.”

Priority auctions can bring significant advantages to protocols by enabling them to allocate greater resources towards critical functions such as setting liquidation rewards. This enhanced efficiency allows protocols to subsequently distribute cost savings to their stakeholders.

The Express Relay system is made up of both on-chain contracts using smart technology and an off-chain auction platform ensured by robust security. This setup facilitates communication among DeFi protocols, searchers, relayers, and the Pyth DAO.

Which protocols have integrated Express Relay?

As an analyst, I’m excited to share that I’ve recently observed the launch of Pyth Network’s Express Relay on its mainnet, which came about following a successful Pyth DAO vote. This new product is now functional not just on Pyth’s mainnet but also on EVM mainnets. Furthermore, it has been seamlessly integrated with various protocols in the lending, perpetual futures, and derivatives market.

The combined value of these protocols amounts to over a billion dollars. Among them are Synthetix, ZeroLend, Synonym Finance, Fulcrom Finance, Jax Finance, and Vela Exchange, which make up the eleven chains in question.

As a researcher exploring the Decentralized Finance (DeFi) landscape, I’ve come across an intriguing development with Express Relay. They have expanded their network by integrating institutional players in this field. Specifically, they have onboarded Flowdesk, Auros, Wintermute, Caladan, Flow Traders, and Swaap Finance as searchers within their network. This addition not only broadens the scope of Express Relay’s services but also strengthens its presence in the DeFi sector by collaborating with established players.

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2024-07-11 17:04