Pyth Network debuts new DeFi tool to slash MEV and return millions to dApps

Key Takeaways

• Express Replay connects DeFi protocols with searchers directly, eliminating costly miners.
• The tool has been integrated by major players like Flow Traders, Wintermute, Synthetix, and Zerolend

Pyth Network has officially launched Express Replay, a new decentralized solution designed to mitigate miner extracted value (MEV) and reduce costs for DeFi protocols, according to a press release shared by the team on Thursday.

Pyth Network’s Express Replay aims to tackle the problem with MEV in DeFi transactions, which allows miners to capture most of the value from searchers, leading to higher costs for protocols and users.

“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,” said Tim Wu, Wintermute’s Head of DeFi, one of the solution’s early adopters.

The tool connects DeFi protocols with a network of searchers through auctions, excluding miners from the equation and allowing searchers to compete “more aggressively” for transaction opportunities, Pyth Network detailed. The searcher with the most competitive bids secures transaction rights.

Express Relay can enhance efficiency and fairness in DeFi operations as more competitive bidding ensures searchers and protocols share value more equitably. DeFi protocols can save money on setting liquidation rewards and other critical operations.

The tool setup not only decreases operational costs but also accelerates integration for new protocols and streamlines processes for existing ones. Permissionless integration allows any DeFi protocol or searcher to participate.

Key industry players like Flow Traders, Wintermute, Auros, Flowdesk, Caladan, Tokka Labs, and Swaap Finance, have already adopted Express Replay.

“With the introduction of Pyth Express Relay, a new protocol is accessible to enable efficient and seamless execution of liquidations,” said Michael Lie, Global Head of Digital Asset at Flow Traders.

Apart from those searchers, several protocols, such as Synthetix, Zerolend, Ionic, Synonym, Keom, Jax Finance, Vela Exchange, and Fulcrom Finance, have integrated the tool into their systems to improve market liquidity and transaction efficiency.

“Integrating with Express Relay enhances our ability to provide deep liquidity for on-chain derivatives,” Matt Losquadro, Core Contributor at Synthetix stated. “Synthetix can streamline liquidations and optimize capital efficiency, further strengthening our perpetual futures markets.”

“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,” said Ryker, Founder of ZeroLend.