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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
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  1. Oval Overview

Problem

What problem is Oval solving?

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Last updated 10 months ago

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Oracle price updates can leak significant value into the Ethereum supply chain. In particular, when a price update catalyzes a liquidation, a significant chunk of risk-free profit is turned into MEV. Oval's goal is to capture that MEV and return it to the protocol that it came from.

The current MEV tooling landscape lacks a common mechanism to capture this kind of MEV, called Oracle Extractable Value (OEV). Instead, the majority of the value eventually flows down the supply chain to block builders and validators. It starts when searchers bid to backrun the oracle update by placing their transaction immediately after the update, enabling them to perform the profitable liquidation. These auctions are competitive, so a searcher bids the majority of their profit to have their bundle included, thus end up passing the majority of the value up the supply chain.