The innovative Oracle Machine with intelligent clearing is here.

A groundbreaking Oracle Machine technology has recently emerged, marking the first Oracle Machine solution with settlement intelligence. Unlike traditional Oracle Machines, it can proactively enhance the efficiency of lending protocols. This technology introduces a zero-latency Oracle Machine update mechanism, enabling protocols to settle positions faster, improve loan-to-value ratios, and deliver better risk-adjusted returns.

This innovative Oracle Machine not only puts price data on-chain but also dynamically captures the extractable value (OEV) and returns it to the protocol. These captured values can be used as revenue, enhance user yields, or reduce borrowing costs. This technology is driven by innovative application-specific sorting techniques and does not introduce liquidation delays or additional security assumptions.

Currently, this Oracle Machine technology has been launched on a certain blockchain, providing security guarantees for multiple well-known lending protocols, and plans to expand to more blockchain networks. It can be enabled on any data source and any chain without the need for code changes or engineering investment.

The main advantages of this Oracle Machine technology include:

• Significantly improve lending protocol performance
• Achieve zero-latency settlement
• Native Capture OEV and Return Protocol
• Price updates, settlement, and OEV payments are completed at an atomic level in a single transaction.
• Activate on any data source and chain without integration work

This technology is seen as a fundamental change in the field of Oracle Machine. It is tailored for protocols, allowing lending protocols to gain a significant advantage in competition while addressing the long-standing OEV efficiency issues in DeFi.

Solving the Core Issues of DeFi Oracle Machines

This new Oracle Machine technology redesigns the way oracles work, addressing the core issues of the most commonly used oracles in DeFi.

Traditional push-based data sources push price updates to the blockchain under preset conditions. Faster Oracle Machine updates allow lending protocols to adopt more aggressive risk parameters, increasing the borrowing limits. However, due to gas cost considerations, traditional push-based data sources typically have lower update frequencies, limiting the flexibility of lending protocols.

The new Oracle Machine has achieved a push-based data source with on-demand instant updates for the first time. As long as the new price can trigger a liquidation, anyone can call for an update, enabling zero-latency price updates. This allows DeFi protocols to complete liquidations faster and more efficiently than their competitors, thereby increasing the LTV ratio and providing users with higher returns and value.

Solve OEV Issue

Oracle can extract value ( OEV ) has long been a significant vulnerability for blockchain Oracle Machines. Conservative estimates suggest that the total loss of OEV has exceeded 500 million USD.

When the Oracle Machine pushes the price that triggers liquidation, OEV will be generated. To incentivize timely liquidation, the protocol offers high liquidation bonuses, but most of these bonuses are used as priority fees, and the protocol pays a high price for security.

There have been some OEV capture solutions before, but none have been able to be applied on a large scale. These solutions either introduce settlement delays, rely on difficult-to-scale off-chain facilities, or require time-consuming protocol upgrades.

The new Oracle Machine adopts innovative application-specific sorting technology, meeting key requirements such as fast settlement, security and reliability, easy scalability, and high capture rates. It utilizes millisecond-level sealed window auctions, allowing liquidators to bid for exclusive settlement rights. The protocol can earn most of the settlement rewards as income, while ensuring zero latency in settlement.

Convenient Integration

This Oracle Machine technology does not require complex technical integration. It can be natively enabled on any data source and any chain, and the protocol does not even require changing the data source contract address. Enabling it only requires applying and providing the address to receive OEV.

The emergence of this technology marks the entry of blockchain Oracle Machine into a new era. Lending protocols that adopt it will be able to surpass competitors with more aggressive risk parameters, providing users with higher returns. This is expected to make it the preferred data source for lending protocols.

Overall, this innovative Oracle Machine technology brings significant performance improvements and efficiency enhancements to the DeFi ecosystem by providing zero-latency settlement and OEV capture. Its emergence is expected to propel the entire industry forward.