DeFi
Pyth Network Launches Express Relay on Mainnet
Pyth NetworkA blockchain market and finance Data Oracle has launched its latest product, Express Relay, according to the latest information shared with Finbold on July 11.
Launching on the Pyth mainnet, the new product offers a decentralized solution to miner-extractable value (MEV) that is widely issued in decentralized finance (Challenge) operations.
Express Relay connects DeFi protocols with established researchers through protocol-controlled auctions for high-value transactions, such as liquidations.
Notable researchers integrated with Express Relay include Flow Traders, Wintermute, Auros, Flowdesk, Caladan, Tokka Labs, and Swaap Finance.
Improving Liquidation on DeFi Protocols
MEV allows miners and validators to extract more value from DeFi transactions via block space tips.
However, with Express Relay, transactions are awarded to the researcher offering the highest bid, thus removing miners from the equation.
As a result, there is fiercer competition among seekers for transaction value, allowing DeFi protocols to amplify liquidation rewards and savings.
Michael Lie, Global Head of Digital Assets at Flow Traders, highlighted the challenges inherent in liquidations, saying:
“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 such as Flow Traders can provide deep liquidity to markets during liquidation moments. 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. Therefore, we are excited to be a part of this new initiative and continue our engagement with Pyth, which has now been many years in the making.”
Protocols like Synthetix, Zerolend, Ionic, Synonym, Keom, Jax Finance, Vela Exchange, and Fulcrom Finance have already adopted or are integrating with Express Relay, collectively managing over $1 billion in total value locked (TVL) across 11 blockchains.
More efficient DeFi transactions
New protocols can be deployed more quickly by leveraging Express Relay’s research network instead of spending resources developing their own networks.
To speed up the process, Express Relay aggregates valuable DeFi transactions across various protocols and blockchains, simplifying access and reducing trading costs.
In the spirit of blockchain, integration with Express Relay is permissionless, requiring only minimal code adjustments.
Tim Wu, Head of DeFi at Wintermute, expressed his enthusiasm for the initiative, highlighting his team’s dedication to a more transparent market:
“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.”
Agora Pyth Summit 2024
Pyth Network representatives from Douro Labs and Pyth Data Association presented Express Relay at the Pyth Agora 2024 Summit during the Ethereum Community Conference on July 11.
Among other topics discussed at the summit, the importance of incentivizing users to stay on the blockchain was discussed.
By tackling the MEV problem head-on, Express Relay promises to create a more efficient, transparent, and user-friendly DeFi environment.
Delivering better returns and a fairer experience, these benefits impact end users the most.
Additionally, the permissionless onboarding process facilitates the adoption of Express Relay by protocols, fostering a more inclusive and vibrant DeFi ecosystem at all levels.