Pyth Network’s Express Relay is revolutionizing DeFi by eliminating MEV and enhancing transaction efficiency for protocols and users alike.
Pyth Network, a provider of real-time market data for blockchain applications, has launched its latest product, Express Relay, on mainnet. This innovative solution addresses the long-standing issue of Miner Extractable Value (MEV) in DeFi transactions, particularly liquidations and market-efficiency enhancing operations.
The Express Relay system connects DeFi protocols directly with a network of established searchers through protocol-controlled auctions for valuable transactions. Searchers already using Express Relay include Flow Traders, Wintermute, Auros, Flowdesk, Caladan, Tokka Labs, and Swaap Finance.
MEV occurs when miners or validators capture most of the value from searchers’ DeFi transactions by prioritizing their blockspace tips. With Express Relay, the most competitive searcher wins the right to perform the transaction, effectively removing miners from the process. This allows searchers to compete more aggressively for transaction value, enabling DeFi protocols to increase their liquidation reward incentives. Express Relay promotes a more equitable DeFi industry, providing savings for protocols, which can be used for other initiatives or passed onto users.
DeFi protocols utilizing Express Relay can significantly reduce the costs associated with critical operations like setting liquidation rewards, eliminating the extractive role of miners in transaction ordering. Protocols such as Synthetix, Zerolend, Ionic, Synonym, Keom, Jax Finance, Vela Exchange, and Fulcrom Finance are integrating with Express Relay to mitigate MEV impacts. Together, these applications represent $1 billion in total locked value across 11 blockchains.
Enhanced DeFi Transaction Efficiency
New protocols can streamline their deployment with Express Relay’s established network of searchers. Integrating with Express Relay reduces the need for protocols to invest heavily in developing their own liquidator and searcher networks. For searchers, Express Relay consolidates liquidation and other valuable DeFi transaction opportunities across multiple protocols and blockchains, reducing the time and costs of individual negotiations and integrations.
In keeping with decentralization principles, DeFi protocols and searchers can integrate with Express Relay in a permissionless manner by adding a few lines of code.
Contributors to the Pyth Network from Douro Labs and Pyth Data Association publicly showcased Express Relay for the first time at the inaugural Pyth Agora 2024 summit during the Ethereum Community Conference on July 11. The Express Relay primitive is governed by the Pyth DAO.
“Liquidations are inherently difficult to execute effectively. With the introduction of Pyth Express Relay, a new protocol is accessible to enable efficient and seamless execution of liquidations. Market makers such as Flow Traders can provide deep liquidity to the markets during moments of liquidation. When we seek our ecosystem partners to collaborate with, we aim to have an active role in furthering our mission to create more efficient markets. Therefore, we are thrilled to be part of this new initiative and further our engagement with Pyth, which is now many years in the making.” — Michael Lie, Global Head of Digital Asset of Flow Traders.
“Express Relay is a natural progression from Pyth’s core oracle production. It ambitiously serves to reduce value extraction by intermediaries and improve liquidation execution efficiency, effectively tackling this form of MEV. Contributing to a system where searchers and protocols interact with aligned interests furthers our mission to advance a truly decentralized world with more transparent and efficient markets. We are excited to be part of this initiative,” — Tim Wu, Head of DeFi of Wintermute.
“Integrating with Express Relay enhances our ability to provide deep liquidity for on-chain derivatives. By leveraging Express Relay’s auction system, Synthetix can streamline liquidations and optimize capital efficiency, further strengthening our perpetual futures markets. This collaboration aligns with our mission to power robust, reliable derivatives trading in DeFi.” — Matt Losquadro, Core Contributor at Synthetix.
“Zerolend is proud to integrate with Express Relay to bring MEV-free transactions to our platform. This collaboration enhances our commitment to providing a secure and efficient lending experience that passes down savings to our users.” — Ryker, Founder of ZeroLend.
About Pyth Network
Pyth Network is a dedicated oracle solution designed for latency-sensitive financial data typically confined within the “walled gardens” of centralized institutions. Pyth Network aims to securely bring this unique data on-chain in an innovative and cost-effective manner. To learn more about Pyth Network, visit pyth.network.
