diff --git a/docs/dapps/integration/index.md b/docs/dapps/integration/index.md index 5ee13d0f..e323235f 100644 --- a/docs/dapps/integration/index.md +++ b/docs/dapps/integration/index.md @@ -158,6 +158,6 @@ Note that this address is different from the one displayed when "Skip OEV Reward ::: info 💡 Tip Can't find your dApp? -Follow the OEV Rewards [onboarding flow](/dapps/oev-rewards/index.md#how-to-get-onboard) first. +Follow the OEV Rewards [onboarding steps](/dapps/oev-rewards/index.md#how-to-get-onboard) first. ::: diff --git a/docs/dapps/oev-rewards/best-practices.md b/docs/dapps/oev-rewards/best-practices.md new file mode 100644 index 00000000..17115da2 --- /dev/null +++ b/docs/dapps/oev-rewards/best-practices.md @@ -0,0 +1,50 @@ +--- +title: Best practices +pageHeader: dApps → OEV Rewards +--- + + + +# Best practices + +::: info ⚠️ Warning + +[Mixed oracle design](/dapps/integration/contract-integration#mixed-oracle-design) is the main culprit behind lackluster OEV Rewards. +If your contract integration is faulty, the suggestions below are unlikely to help. + +::: + +OEV Rewards are proceeds from auctions in which OEV searchers participate. +For the auction bids to be competitive, there must be multiple independent OEV searcher parties. +An OEV searcher is a blockchain developer with specific expertise whose time is typically quite valuable. +Therefore, for a maximum amount of OEV Rewards, searching for your dApp must be as easy as possible. + +::: info 💰 Financial + +Investing resources in bootstrapping OEV searcher activity may be required to maximize OEV Rewards. + +::: + +OEV searchers make a simple revenue–cost estimation before deciding whether to search for your dApp. +The easiest way to tilt this equation in your favor is to provide excellent documentation on how OEV searchers should interact with your dApp. +Going one step further is developing and open-sourcing an OEV bot for your dApp that anyone can use and improve upon. +An open-source bot that works well and is easy to operate will attract many users, driving searcher profit margins down and your OEV Rewards up. +Finally, you can [be your own OEV searcher](/oev-searchers/) and participate in the auctions of your dApp. + +::: info 💡 Tip + +If your dApp is a fork of a well-established DeFi protocol, the barrier to entry for searching your dApp will be minimal. +Since API3 is also incentivized to maximize OEV Rewards, we will provide access to a library of example open-source OEV bots. + +::: + +The second way to attract OEV searchers and maximize OEV Rewards is to increase revenue. +For example, a lending platform that pays 10% of the position size as a liquidation reward will attract more attention than one that pays 5%. +Similarly, a perpetual derivative exchange that properly uses API3 data feeds is likely to yield a significant amount of OEV Rewards. + +::: info 💰 Financial + +Consider treating OEV Rewards as your main source of revenue rather than an extra source. +Do you really need to charge a protocol fee for your dApp if you're receiving sufficient OEV Rewards? + +::: diff --git a/docs/dapps/oev-rewards/index.md b/docs/dapps/oev-rewards/index.md index c27fe030..8b52057c 100644 --- a/docs/dapps/oev-rewards/index.md +++ b/docs/dapps/oev-rewards/index.md @@ -1,7 +1,6 @@ --- title: Getting paid pageHeader: dApps → OEV Rewards -outline: deep --- @@ -16,15 +15,23 @@ Assuming competitive auctions, OEV Rewards will be equal to the amount that woul 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. You can drop in API3 data feeds to replace your current data feeds and immediately start earning OEV Rewards. +If you want to maximize your OEV Rewards, make sure to check out our [guide for best practices.](/dapps/oev-rewards/best-practices) ## How to get onboard -Use [this form](https://api3dao.typeform.com/to/FHhFIL41) to contact an API3 representative who will walk you through the following steps: +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: -1. We register your dApp so it appears on the API3 Market [integration page.](/dapps/integration/index.md#integration-information) -2. You let us know which chains you operate on and which data feeds you want to use. -3. We purchase subscriptions for you (if applicable) and deploy an OEV Rewards-enabled Api3ReaderProxyV1 contract for each data feed you will use. -4. You integrate these Api3ReaderProxyV1 contracts according to the [instructions.](/dapps/integration/contract-integration) +1. We register your dApp for it to show up on the API3 Market [integration page.](/dapps/integration/index.md#integration-information) +2. You let us know which chains you operate on so we can start running the respective auctions. + ::: info 💡 Tip + Don't forget to notify us if you expand to new chains later on. + ::: +3. You let us know which data feeds you will use. + If a gas grant is applicable, we purchase subscriptions for you and deploy an OEV Rewards-enabled Api3ReaderProxyV1 contract for each data feed. + ::: info 💡 Tip + Alternatively, you can complete this step on your own using [API3 Market.](https://market.api3.org/) + ::: +4. You [integrate](/dapps/integration/contract-integration) the OEV Rewards-enabled Api3ReaderProxyV1 contracts. 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. @@ -35,47 +42,3 @@ You might ask, "What's the catch?" There is none; OEV Rewards come at the expense of third parties who would otherwise solely benefit from MEV. ::: - -## Best practices to maximize OEV Rewards - -::: info ⚠️ Warning - -[Mixed oracle design](/dapps/integration/contract-integration#mixed-oracle-design) is the main culprit behind lackluster OEV Rewards. -If your contract integration is faulty, the suggestions below are unlikely to help. - -::: - -OEV Rewards are proceeds from auctions in which OEV searchers participate. -For the auction bids to be competitive, there must be multiple independent OEV searcher parties. -An OEV searcher is a blockchain developer with specific expertise whose time is typically quite valuable. -Therefore, for a maximum amount of OEV Rewards, searching for your dApp must be as easy as possible. - -::: info 💰 Financial - -Investing resources in bootstrapping OEV searcher activity may be required to maximize OEV Rewards. - -::: - -OEV searchers make a simple revenue–cost estimation before deciding whether to search for your dApp. -The easiest way to tilt this equation in your favor is to provide excellent documentation on how OEV searchers should interact with your dApp. -Going one step further is developing and open-sourcing an OEV bot for your dApp that anyone can use and improve upon. -An open-source bot that works well and is easy to operate will attract many users, driving searcher profit margins down and your OEV Rewards up. -Finally, you can [be your own OEV searcher](/oev-searchers/) and participate in the auctions of your dApp. - -::: info 💡 Tip - -If your dApp is a fork of a well-established DeFi protocol, the barrier to entry for searching your dApp will be minimal. -Since API3 is also incentivized to maximize OEV Rewards, we will provide access to a library of example open-source OEV bots. - -::: - -The second way to attract OEV searchers and maximize OEV Rewards is to increase revenue. -For example, a lending platform that pays 10% of the position size as a liquidation reward will attract more attention than one that pays 5%. -Similarly, a perpetual derivative exchange that properly uses API3 data feeds is likely to yield a significant amount of OEV Rewards. - -::: info 💰 Financial - -Consider treating OEV Rewards as your main source of revenue rather than an extra source. -Do you really need to charge a protocol fee for your dApp if you're receiving sufficient OEV Rewards? - -::: diff --git a/docs/dapps/sidebar.js b/docs/dapps/sidebar.js index dcd18947..cb90f3ac 100644 --- a/docs/dapps/sidebar.js +++ b/docs/dapps/sidebar.js @@ -37,6 +37,9 @@ module.exports = [ { text: 'OEV Rewards', collapsed: false, - items: [{ text: 'Getting paid', link: '/dapps/oev-rewards/' }], + items: [ + { text: 'Getting paid', link: '/dapps/oev-rewards/' }, + { text: 'Best practices', link: '/dapps/oev-rewards/best-practices' }, + ], }, ];