United Arab Emirates, 10th Jun 2023, King NewsWire – Today, API3 is thrilled to announce the launch of Managed dAPIs, a
groundbreaking solution that revolutionises the way decentralised applications
(dApps) interact with off-chain data. Managed dAPIs offer developers a secure,
reliable, and scalable approach to accessing real-world data on-chain, while
prioritising source transparency and trust.
In the rapidly evolving landscape of the Web3 data economy, the need for reliable
and transparent connections between real-time market data and smart contracts has
become paramount. Managed dAPIs, powered by API3, address these challenges
by providing high-quality reference data served on-chain by first-party oracles. By
eliminating third-party intermediaries and enhancing data integrity, Managed dAPIs
establish a new standard for fostering trust through data source transparency and
embody the core values of blockchain technology.
What Makes Managed dAPIs Better?
Managed dAPIs offer a wide range of features that not only ensure reliability and
efficiency but also significantly improve security. These attributes make Managed
dAPIs the ideal choice for dApps seeking accurate, reliable, and secure data in the
rapidly changing oracle space.
1. First-Party Oracles
Managed dAPIs utilise first-party oracles, enabling data to be served directly from
reputable API providers via the API3 Airnode. This direct connection eliminates the
need for third-party intermediaries, reducing the possibility of data manipulation or
bias. The first-party oracle architecture fosters trust through source reputation and
end-to-end transparency. Developers can verify the data source on-chain, providing
confidence in the integrity and accuracy of the accessed data.
2. Multi-Source Data Feeds
Managed dAPIs aggregate data from numerous first-party oracles, creating
multi-source data feeds. This approach ensures a broad and diverse range of data
points, contributing to the overall accuracy and reliability of the data. Each beacon or
data point in a Managed dAPI represents a unique provider that is verifiable,
ensuring data integrity and reducing potential bias.
3. Push Oracle Architecture
Managed dAPIs utilise a push oracle architecture, actively pushing data to the
blockchain and making it readily available for dApps. This push architecture
enhances efficiency and ensures timely data feed updates, benefiting both
developers and end-users. Furthermore, this design makes it easy for dApps to
migrate from existing oracle services.
4. Improved Security With Native-Chain Aggregation
To provide maximum security, Managed dAPIs use native-chain aggregation,
combining data on the same chain that the oracle is being used on. Native-chain
aggregation maximises security by eliminating the need for bridges, which come with
their own risks and vulnerabilities. With native-chain aggregation, developers can
rely on a secure and reliable data feed.
These features make Managed dAPIs a powerful solution for building better oracles
in the DeFi ecosystem. By focusing on end-to-end transparency, high-quality data
sources, efficient data delivery, and robust security, Managed dAPIs set a new
standard for how dApps access real-world data on the blockchain.
Accessing Managed dAPIs
Managed dAPIs have been designed to be developer-friendly and easy to
implement. They can be accessed via the API3 Market, providing developers with
seamless access to aggregated data feeds. The market offers a range of
multi-source dAPIs with various deviation thresholds and heartbeat specifications,
allowing developers to choose a service that aligns with their unique requirements.
While existing dAPIs are always free to read, the creation of a new multi-source feed
requires the user or ‘sponsor’ to pay for the upgrade to create the data feed. Users
are required to pay for the upgrade to a Managed dAPI in native chain currency,
covering the operational expenses associated with gas costs. The sponsoring dApp
essentially upgrades the service to a multi-source data feed, which API3 creates and
maintains. Once established, the feed becomes accessible to all users, as long as
the sponsoring dApp continues to fund the Managed dAPI. This flexible and scalable
nature of the service accommodates changes to contracts during their term,
providing additional scalability to developers.
Operational Oversight
The API3 DAO dAPI team provides 24/7 monitoring of Managed dAPIs, ensuring
continuous checks on wallets and API responses for reliability and security. The
team can also update or “re-map” dAPIs to meet evolving requirements, ensuring a
continuous improvement cycle. This level of operational oversight guarantees that
Managed dAPIs maintain their integrity and reliability at all times.
Simple Integration
Managed dAPIs have been designed for easy integration. Comprehensive
documentation and guides are available to simplify the process, and a dedicated
developer community provides technical support and best practices. Whether you’re
a seasoned developer or a newcomer, you’ll find the integration process smooth and
intuitive.
Managed dAPIs are supported across 12 different networks, including Ethereum,
Arbitrum, Polygon zkVM, and Optimism, with data feed contracts adapted to the
specific duration limits of each chain. This multi-chain support expands the reach of
Managed dAPIs, providing more opportunities for developers and blockchain
networks to leverage the power of decentralised data feeds.
Paving a Road to Better Protocol Performance with Oracle Extractable Value
As API3 progresses into the next phase of the dAPI rollout, they are turning the
challenges posed by Maximal Extractable Value (MEV) into an opportunity to
optimise the DeFi ecosystem. Traditionally, MEV has caused significant value loss
for dApps and contributed to a poor user experience. API3 is addressing these
challenges by designing a process to capture Oracle Extractable Value (OEV), a
subset of MEV related to oracle updates.
Outlined in the API3 OEV Litepaper, they will introduce an off-chain marketplace that
allows dApps to auction off meta-transactions signed by first-party oracles for
updating data feeds. Searchers bid for the right to perform these oracle updates,
capturing the MEV associated with the transaction. This shared benefit model
ensures that price feeds are updated according to the dApp’s needs rather than
solely relying on deviation thresholds, similar to a pull-based oracle.
The transformative aspect of OEV lies in the fact that the value captured by
searchers is shared with the dApps through the auction process. This approach
minimises the negative impacts of MEV extraction, fostering the creation of accurate
and low-latency oracles, which, in turn, enhance protocol performance and efficiency.
One profound impact of OEV is its ability to create more accurate and low-latency
oracles, increasing the profitability and sustainability of liquidity provision. This, in
turn, improves market-making and attracts more liquidity to the application, fostering
better performance and a superior user experience. By introducing a process to
capture OEV, API3 demonstrates the power and potential of Managed dAPIs, paving
the way for a sustainable and profitable future in DeFi.
Building a Better Oracle Service with Managed dAPIs
Managed dAPIs are transforming how dApps access and handle data on the
blockchain. They represent a significant leap towards realizing a truly decentralized
data economy by addressing critical issues of data integrity, security, and
transparency.
By leveraging Managed dAPIs, developers and networks can proactively foster
transparency and reliability, building on the “don’t trust, verify” principle. This
approach delivers a better user experience and establishes long-term trust with
users.
API3 encourages developers and blockchain networks to explore their technical
documentation to learn more about using Managed dAPIs to power their
applications.
Explore Managed dAPIs today and join API3 in building the future of decentralised
finance.
For more information about Managed dAPIs and to explore the possibilities they
offer, please visit API3’s website and access the comprehensive technical
documentation.
About API3:
API3 is a leading provider of decentralised oracle solutions, committed to bridging
the gap between blockchain applications and real-world data. By leveraging the
power of first-party oracles and advanced technology, API3 offers developers and
dApps a reliable, secure, and transparent approach to accessing off-chain data
on-chain. With the launch of Managed dAPIs, API3 is driving innovation in the DeFi
ecosystem and setting new standards for decentralised data feed.
Media Contact
Organization: API3
Contact Person: Adonis Cyril
Website: https://api3.org/dao
Email: Adonis.radarblock@gmail.com
Country: United Arab Emirates
Release Id: 1006234065