We are excited to share our collaboration with API3 for the build and launch of the OEV Network, powered by Arbitrum Orbit.
This partnership is a culmination of years of research and effort by the API3 team in designing an onchain solution to recapture oracle extractable value (OEV) for lending protocols.
The OEV Network is the first Layer 2 solution where oracle service providers and lending protocols come together to mitigate the negative impact of MEV. By utilizing specialized order-flow auctions for oracle updates, the OEV Network creates an efficient market where searchers bid for valuable oracle updates, such as in liquidations. Instead of bribing block producers on the mainnet, these bids ensure that proceeds are programmatically returned to the dApp that generated the value.
Powering the OEV Network
As the leading Rollup-as-a-Service provider, Caldera is essential to the deployment and operation of the OEV Network using Arbitrum Orbit. Our partnership ensures a streamlined build-launch-scale cycle tailored to the needs of the OEV Network.
Building Phase
The OEV Network benefits from Caldera’s custom integration with Arbitrum Orbit. Caldera offers flexible sequencing options and data availability solutions from platforms like Celestia or NEAR, significantly lowering operational costs. Additionally, the OEV Network can utilize any ERC-20 token as its native fee-paying token, enhancing economic flexibility.
Launch Phase
Caldera supports the OEV Network by providing the necessary infrastructure through its RPCs, ensuring the network’s rollups are fully EVM-compatible and capable of running Solidity smart contracts. Our native bridge UI and third-party partnerships facilitate easy asset transfers, improving the experience for searchers on the network. The API3 team also benefits from essential tools such as a block explorer and transaction data APIs, making the development environment secure and user-friendly.
Scaling Phase
As the OEV Network expands, Caldera guarantees scalable infrastructure with a 99.99% uptime guarantee and 24/7 technical support. This allows the OEV Network to focus on growing across all chains where the API3 Oracle Stack is deployed, maximizing searcher competition without technical concerns.
“We’re excited to partner with API3 to launch the OEV Network. By utilizing Caldera’s rollups-as-a-service, the OEV Network will offer unparalleled scalability and security, empowering developers to build more robust and reliable decentralized applications,” said Matt Katz, Caldera CEO.
This collaboration between API3 and Caldera is a major advancement in redefining the oracle landscape around API3’s Oracle Stack. For more information, visit the API3 technical documentation, read the OEV litepaper, or visit the API3 Market.
About Caldera
Caldera is a rollup deployment platform that enables web3 teams to launch high-performance, customizable, application-specific rollups with frameworks like Arbitrum Nitro, Optimism Bedrock, zkSync ZK Stack, and Polygon CDK. Every Caldera rollup includes performant RPC nodes, a block explorer, a data indexer, and a bridge interface to the settlement chain, along with integrations with over 50 leading web3 infrastructure providers.
