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Api3ReaderProxyV1 is a [UUPS-upgradeable](https://eips.ethereum.org/EIPS/eip-1822) contract, which can be upgraded by [a 4-of-8 multisig](https://github.com/api3dao/contracts/blob/main/data/manager-multisig-metadata.json#L2) that is owned by members of the API3 technical team.
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Api3ReaderProxyV1 is a [UUPS-upgradeable](https://eips.ethereum.org/EIPS/eip-1822) contract, which can be upgraded by [a 4-of-8 multisig](https://github.com/api3dao/contracts/blob/main/data/manager-multisig-metadata.json#L2) that is owned by members of the Api3 technical team.
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This upgradeability feature is intended to be used only in exceptional occasions to respond to newly discovered compiler, library or contract vulnerabilities, or to migrate users to potential new versions of the contracts.
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[A 4-of-4 multisig,](https://github.com/api3dao/contracts/blob/main/data/dapi-management-metadata.json#L2) which again is owned by members of the API3 technical team, approves the root of a Merkle tree containing data feed configurations.
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[A 4-of-4 multisig,](https://github.com/api3dao/contracts/blob/main/data/dapi-management-metadata.json#L2) which again is owned by members of the Api3 technical team, approves the root of a Merkle tree containing data feed configurations.
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This means adding, removing or replacing API providers that contribute to the aggregation of data feeds requires signatures from all owners of this multisig.
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::: info ℹ️ Info
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## Update parameters
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Once a plan is purchased on API3 Market, the respective data feed will maintain the advertised deviation threshold and heartbeat interval until plan expiration.
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This depends on the API3 technical team to keep the wallets that will send the update transactions funded, and maintain the infrastructure that will use these wallets to send the update transactions.
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Once a plan is purchased on Api3 Market, the respective data feed will maintain the advertised deviation threshold and heartbeat interval until plan expiration.
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This depends on the Api3 technical team to keep the wallets that will send the update transactions funded, and maintain the infrastructure that will use these wallets to send the update transactions.
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The operation is backed by dedicated monitoring personnel, automated alerts, and redundant infrastructure layers.
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::: info ℹ️ Info
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We have been providing oracle services as early as [2019](https://etherscan.io/txs?a=0x78e76126719715eddf107cd70f3a31dddf31f85a&p=1029), and were listed as the [best responding oracle](/assets/reputation-link.CxhU2iIj.png) among all Chainlink oracles by [`reputation.link`](https://www.google.com/search?q=%22reputation.link%22+chainlink) as of September 2020, which is when we published the [API3 whitepaper](https://github.com/api3dao/api3-whitepaper) and requested to be removed from Chainlink data feeds.
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We have been providing oracle services as early as [2019](https://etherscan.io/txs?a=0x78e76126719715eddf107cd70f3a31dddf31f85a&p=1029), and were listed as the [best responding oracle](/assets/reputation-link.CxhU2iIj.png) among all Chainlink oracles by [`reputation.link`](https://www.google.com/search?q=%22reputation.link%22+chainlink) as of September 2020, which is when we published the [Api3 whitepaper](https://github.com/api3dao/api3-whitepaper) and requested to be removed from Chainlink data feeds.
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An important driving factor for this was our insight into systemic issues that could harm users and our confidence in building a better solution.
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With this understanding, we designed our architecture and operations from the ground up, leading to our current performance.
The [API3 whitepaper](https://github.com/api3dao/api3-whitepaper) poses that all oracle data comes from API providers in practice, and the trust-minimized way to receive data from an API provider is for there to be no third-party intermediaries.
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The [Api3 whitepaper](https://github.com/api3dao/api3-whitepaper) poses that all oracle data comes from API providers in practice, and the trust-minimized way to receive data from an API provider is for there to be no third-party intermediaries.
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We have coined the term _first-party oracle_ to refer to this architecture, where API providers deliver oracle services without needing third parties to facilitate.
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API3 data feeds are on-chain aggregations of data feeds powered by individual first-party oracles.
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Each API provider powers a single-source data feed on-chain, and the API3 data feed is an on-chain median of the these individual data feeds, which provides the strongest security guarantees (for example, compared to off-chain aggregation).
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Api3 data feeds are on-chain aggregations of data feeds powered by individual first-party oracles.
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Each API provider powers a single-source data feed on-chain, and the Api3 data feed is an on-chain median of the these individual data feeds, which provides the strongest security guarantees (for example, compared to off-chain aggregation).
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::: info ⚠️ Warning
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@@ -87,7 +87,7 @@ Consequently, when dApps use Pyth data on Ethereum, users pay Ethereum gas fees
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API3 maintains a roster of first-party oracle partners and curates data feeds through continuous performance analysis.
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Api3 maintains a roster of first-party oracle partners and curates data feeds through continuous performance analysis.
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This focused approach produces better aggregation than alternatives that rely on numerous downstream oracle service providers.
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## Oracle Extractable Value (OEV)
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dApps using our system will experience a 30–60 second delay in their data feed.
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While this delay concerns some users, we can evaluate its impact through a simple framework:
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Consider a dApp that generates `X1` revenue with its current oracle solution.
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Using API3 data feeds would generate `X2` revenue (potentially lower than `X1` due to the delay) plus `Y` in OEV Rewards.
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When `X1 < X2 + Y`—which is common—API3 feeds are the more secure choice.
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Using Api3 data feeds would generate `X2` revenue (potentially lower than `X1` due to the delay) plus `Y` in OEV Rewards.
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When `X1 < X2 + Y`—which is common—Api3 feeds are the more secure choice.
Copy file name to clipboardExpand all lines: docs/dapps/oev-rewards/index.md
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dApps that use traditional data feeds are constantly exploited by MEV bots that manipulate the order of operations around individual data feed updates.
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In practice, this causes dApps to suffer significant and continuous financial losses.
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As the antidote, API3's OEV Network auctions off to OEV searchers the privilege to determine the order of operations around data feed updates.
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As the antidote, Api3's OEV Network auctions off to OEV searchers the privilege to determine the order of operations around data feed updates.
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The resulting auction proceeds are paid to the dApp in the form of OEV Rewards.
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Assuming competitive auctions, OEV Rewards will be equal to the amount that would otherwise have been lost to the MEV bots.
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API3 data feeds work identically to traditional data feeds, which means that you do not need to modify your contracts in any way to use them.
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You can drop in API3 data feeds to replace your current data feeds and immediately start earning OEV Rewards.
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Api3 data feeds work identically to traditional data feeds, which means that you do not need to modify your contracts in any way to use them.
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You can drop in Api3 data feeds to replace your current data feeds and immediately start earning OEV Rewards.
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If you want to maximize your OEV Rewards, make sure to check out our [guide for best practices.](/dapps/oev-rewards/best-practices)
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## How to get onboard
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Use [this form](https://api3dao.typeform.com/to/FHhFIL41) to get in contact with an API3 representative who will walk you through the following steps:
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Use [this form](https://api3dao.typeform.com/to/FHhFIL41) to get in contact with an Api3 representative who will walk you through the following steps:
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1. We register your dApp for it to show up on the API3 Market [integration page.](/dapps/integration/index.md#integration-information)
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1. We register your dApp for it to show up on the Api3 Market [integration page.](/dapps/integration/index.md#integration-information)
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2. You let us know which chains you operate on so we can start running the respective auctions.
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::: info 💡 Tip
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Don't forget to notify us if you expand to new chains later on.
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3. You let us know which data feeds you will use.
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If a gas grant is applicable, we purchase subscriptions for you and deploy an OEV Rewards-enabled Api3ReaderProxyV1 contract for each data feed.
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::: info 💡 Tip
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Alternatively, you can complete this step on your own using [API3 Market.](https://market.api3.org/)
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Alternatively, you can complete this step on your own using [Api3 Market.](https://market.api3.org/)
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:::
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4. You let us know an address where to receive the OEV Rewards.
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::: info 💡 Tip
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5. You [integrate](/dapps/integration/contract-integration) the OEV Rewards-enabled Api3ReaderProxyV1 contracts.
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At the end of each month, API3 will make available a report and 80% of the OEV revenue in the native gas token of the network where your dApp is deployed, with the remaining auction proceeds retained as the protocol fee.
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At the end of each month, Api3 will make available a report and 80% of the OEV revenue in the native gas token of the network where your dApp is deployed, with the remaining auction proceeds retained as the protocol fee.
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::: info 💰 Financial
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API3 provides data feeds [at cost](/dapps/integration/index#pricing) and enables dApps to benefit from OEV Rewards on top.
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Api3 provides data feeds [at cost](/dapps/integration/index#pricing) and enables dApps to benefit from OEV Rewards on top.
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You might ask, "What's the catch?"
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There is none; OEV Rewards come at the expense of third parties who would otherwise solely benefit from MEV.
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