API3 Partners with Caldera to Build and Launch OEV Network Infrastructure
We are excited to announce that we are partnering with Caldera for the build and launch of the OEV Network powered by Arbitrum Orbit. This collaboration marks a significant milestone in our vision of building an onchain solution to recapture oracle extractable value (OEV) for lending protocols.
At the core of this partnership is the OEV Network, which is the first Layer 2 solution where oracle service providers and lending protocols come together to combat the negative impact of MEV through specialized order-flow auctions for oracle updates. OEV Network creates an efficient market around oracle updates, allowing searchers to bid for valuable oracle updates, like in the case of liquidations, rather than having to bribe block-producers to have their transaction included first on mainnet. The proceeds from these auctions are then programmatically returned back to the dApp that generated the value.
Caldera: Streamlining Infrastructure for OEV Network
Caldera, as a leading Rollup-as-a-Service provider, plays a pivotal role in the deployment and operation of the OEV Network using Arbitrum Orbit. This partnership enables a streamlined and efficient build-launch-scale cycle, tailored to the needs of the OEV Network.
Building Phase
OEV Network benefits from Caldera’s array of rollup services including Arbitrum Orbit, allowing the selection of the features most beneficial for the needs of the OEV Network. Caldera also offers flexible sequencing options and data availability solutions from platforms like Celestia or NEAR, significantly lowering operational costs. Importantly, the OEV Network can utilize any ERC-20 token as its native fee-paying token, enhancing the network’s economic flexibility.
Launch Phase
Caldera supports the OEV Network by hosting necessary infrastructure through its RPCs, ensuring the network’s rollups are fully EVM-compatible and capable of running Solidity smart contracts. Caldera’s native bridge UI and third-party partnerships facilitate easy asset transfers, enhancing the experience for searchers on the network. Additionally, developers benefit 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 grows, Caldera guarantees that its infrastructure can scale accordingly, ensuring consistent performance without degradation. The service includes a 99.99% uptime guarantee and provides 24/7 technical support, enabling the OEV Network to focus on expansion to all chains where the API3 Oracle Stack is deployed and maximizes searcher competition without concerns over technical challenges.
This partnership with Caldera’s ensures that the OEV Network is well-positioned to become the go-to solution for recapturing protocol MEV related to oracle updates.
“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. This launch represents a significant step forward in our collaboration and we’re excited to make web3 development more accessible along with our friends at API3,” said Matt Katz, Caldera CEO.
This partnership between API3 and Caldera is a major step in redefining the oracle landscape around API3’s Oracle Stack. For more information about OEV Network, visit the API3 technical documentation, read the OEV litepaper, or visit the API3 Market to get started.
About Caldera
Caldera is a rollup deployment platform that allows web3 teams to launch high-performance, customizable, application-specific rollups with the Arbitrum Nitro, Optimism Bedrock, zkSync ZK Stack, and Polygon CDK frameworks.
Every Caldera rollup comes with performant RPC nodes, a block explorer, a data indexer, and a bridge interface to the settlement chain. Caldera rollups also benefit from integrations with 50+ leading web3 infrastructure providers.
