The Block25 minutes ago

Published on January 23, 2024 15:30 GMT+00:00edited on January 23, 2024 15:34 GMT+00:00

Blockchain project Uma has rolled out a solution called Oval, which aims to allow DeFi protocols to capture value that emerges during oracle updates by tapping into what’s known as oracle extractable value — a type of MEV generated when protocols request price updates from an oracle.

MEV involves extracting value by manipulating transaction order in a block on the Ethereum network, often with the aid of automated bots. This type of MEV arises either from the lack of liquidity across different decentralized exchanges or from their front-running each other under certain market conditions.

There is one type of MEV related to oracles, as Uma notes. In the decentralized finance niche — and in protocols such as lending or borrowing — oracles are crucial as they provide external data, like …