Nikolas Sargeant
Pyth Network has introduced Express Relay, a groundbreaking solution aimed at addressing Miner Extractable Value (MEV) issues in decentralized finance (DeFi) transactions. This mainnet launch marks a significant step towards enhancing market efficiency and reducing transaction costs.
Express Relay connects DeFi protocols directly with established searcher networks through protocol-controlled auctions. This innovative approach eliminates miners from the process, potentially resolving several MEV-related challenges that have plagued blockchain ecosystems, particularly in DeFi.
Traditionally, MEV has allowed miners or validators to capture substantial value from DeFi transactions through blockspace tips. This practice has led to increased transaction costs, network congestion, and unfair advantages for sophisticated actors, ultimately threatening the decentralization ethos of blockchain networks.
Express Relay's mechanism awards transaction rights to the searcher with the most competitive bid, encouraging aggressive competition and allowing DeFi protocols to increase liquidation reward incentives. This setup not only saves money for protocols but also enables them to redirect funds to more productive initiatives or pass savings on to users.
Several prominent DeFi protocols, representing $1 billion in total locked value across 11 blockchains, have already integrated or are in the process of integrating with Express Relay. The system also simplifies the deployment of new protocols by providing access to an established searcher network.
The launch of Express Relay was showcased at the Pyth Agora 2024 summit during the Ethereum Community Conference. Industry leaders have expressed strong support for the initiative, recognizing its potential to reduce intermediary value extraction and improve liquidation execution efficiency.
As DeFi continues to evolve, innovations like Express Relay demonstrate the industry's commitment to addressing key challenges and improving the overall ecosystem for all participants.
