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

Pyth Network, an oracle network for real-time market data, has introduced Express Relay to provide a solution to the problem of Miner Extractable Value (MEV).

The launch of Express Relay on mainnet brings priority auctions to the ecosystem, allowing for a more self-sovereign decentralized finance (DeFi) market.

As a solution to MEV, the new product removes the extractive role from miners and helps in the faster rollout of new protocols. Meanwhile, it will aggregate valuable opportunities across DeFi for searchers, Pyth announced on Thursday.

Addressing the MEV Problem

Miner Extractable Value (MEV) is the profit miners or validators extract via actions such as reordering, including, or excluding transactions from a block. This scenario means that DeFi protocols and users suffer costs and inefficiencies.

Express Relay addresses these issues by boosting innovation across the DeFi landscape through the direct connection of DeFi protocols and networks of established searchers. This introduces the aspect of priority auction, where searchers compete for priority operations like liquidations.

Protocols can benefit from priority auctions by spending more on key operations, including setting liquidation rewards. The efficiency that comes with this will also mean protocols are able to pass cost savings to stakeholders.

The Express Relay stack consists of on-chain smart contracts as well as a secure off-chain auction system. With this, the solution allows for interactions between DeFi protocols, searchers, relayers, and the Pyth DAO.

Which protocols have integrated Express Relay?

Pyth Network has launched the Express Relay on its mainnet following a recent Pyth DAO vote. The product is also live on EVM mainnets and integrated with multiple protocols in the lending, perpetual futures, and derivatives market.

In total, the protocols account for over $1 billion in total value locked (TVL) across 11 chains. They include Synthetix, ZeroLend, Synonym Finance, Fulcrom Finance, Jax Finance, and Vela Exchange.

Express Relay has also integrated a network of searchers that include institutional players in the decentralized finance space. These are Flowdesk, Auros, Wintermute, Caladan,Flow Traders and Swaap Finance.