🥚
Oval
  • Oval Overview
    • Problem
    • System Overview
  • Integration
    • Quickstart Deployment
    • Morpho Deployment
    • Advanced Deployment
  • Mechanism Details
    • Integration with MEV-Share
    • Mechanism Description
    • Trust Assumptions
    • Oval Update Lifecycle
    • Inclusion Rates
    • Revenue Sharing
  • Contract Architecture
    • Source Adapters
    • Destination Adapters
    • Integration Controllers
    • Oval
    • Gas Profiling
  • Technical Examples
    • Aave Integration
    • Flashbots Integration
  • For Searchers
    • Getting Started
    • Header Specifications
    • Oval Node
  • OEV Data
  • Oval Demo
  • Audit and Bug Bounty
  • Oval Deployments
Powered by GitBook
On this page
  • Methodology
  • Dashboards

Was this helpful?

Edit on GitHub

OEV Data

Break down of OEV related data and the potential market size Oval can capture.

PreviousOval NodeNextOval Demo

Last updated 11 months ago

Was this helpful?

OEV related data is difficult. There are a number of great tools and dashboards that exist today (e.g. EigenPhi &) that showcase the MEV associated with the liquidation landscape. These are great at viewing an overview of the landscape as it unfolds.

Methodology

The UMA team has created two dashboards to showcase the theoretical historic OEV that could have been captured considering two main protocols, Aave and Compound. The methodology used considers the liquidation bonus associated with Aave and Compound as the theoretical upper bound that can be captured as OEV within these protocols.

A liquidation bonus is a discount applied to liquidated collateral that a liquidator is given for executing a liquidation. It acts as an incentive to execute the liquidation by letting the liquidator buy collateral at a discount in exchange for repaying the distressed debt. This concept is consistent between Aave and Compound (Aave calls it Liquidation bonus and Compound calls it Liquidation incentives). You can see the sizing of these values for each protocol here:,,, and.

The dashboards presented below use historic liquidations from January 2021 to now on these protocols and then apply the associated liquidation bonus for each collateral to work out the theoretical upper bound of OEV that could have been captured on these protocols, assuming that Oval was integrated at the time of the liquidation. The liquidation bonus can be considered the absolute maximum extractable value from a liquidation. Under a maximally competitive environment, one would expect that nearly all of the OEV that can be captured is paid to the builder (see). This is due to searchers effectively paying all profit they could capture as bids for block space, minus some small δ that they keep for themselves, which is the difference between the best and second best searcher. Put differently, the theoretical upper bound of all OEV that could be captured equals the liquidation bonus. This gives us an idea of how big the OEV market is, just considering Aave and Compound.

Dashboards

LibMEV
Aave v2
Aave v3
Compound v2
Compound v3
Revenue Sharing
AAVE V2 & V3 Theoretical OEV
Compound V2 & V3 Theoretical OEV