Pyth Network launches a new DeFi tool to reduce MEV and return millions of dollars to dApps

According to a press release shared by the team on Thursday, Pyth Network has officially launched Express Replay - a new decentralized solution designed to minimize the value of miner-extractable value (MEV) and reduce costs for DeFi protocols.

Pyth Network’s Express Replay aims to address the issue of MEV in DeFi transactions, allowing miners to capture a significant portion of value from searchers, resulting in higher costs for the protocol and users.

Tim Wu, DeFi department head of Wintermute, one of the first projects to implement this solution, said:

“Express Relay is a natural progression from Pyth’s core oracle product. It carries an ambitious goal of reducing the value extraction of intermediaries and improving the efficiency of liquidation execution, effectively addressing this MEV form.”

This tool connects DeFi protocols to the search network through the auction process, removing miners from the ‘game’ and allowing searchers to compete ‘more aggressively’ for trading opportunities. The most competitive bidder will be guaranteed the right to trade.

Express Relay can enhance efficiency and fairness in DeFi activities because increased competitive bidding ensures fair value sharing for seekers and protocols. DeFi protocols can save money when setting up liquidation rewards and other important operations.

Setting up the tool not only reduces operational costs but also accelerates integration for new protocols and rationalizes processes for existing protocols. Permissionless integration allows any DeFi protocol or oracle to participate.

Key players in the industry such as Flow Traders, Wintermute, Auros, Flowdesk, Caladan, Tokka Labs, and Swaap Finance have all implemented Express Replay.

In addition to those search tools, some protocols like Synthetix, Zerolend, Ionic, Synonym, Keom, Jax Finance, Vela Exchange, and Fulcrom Finance have integrated this tool into their system to improve market liquidity and transaction efficiency.