Pyth Network has introduced Express Relay on mainnet to address the issue of Miner Extractable Value (MEV) in DeFi transactions. MEV allows miners or validators to capture value from DeFi transactions through tips for blockspace, leading to increased costs, network congestion, unfair advantages, and centralization of power. Express Relay aims to tackle this problem by connecting DeFi protocols with a network of searchers through protocol-controlled auctions, eliminating miners from the process and enhancing market efficiency.
Express Relay awards transaction rights to the searcher with the most competitive bid, encouraging competition and allowing DeFi protocols to increase liquidation reward incentives. This setup reduces the impact of MEV, enabling protocols to save money and redirect it to more productive initiatives or users. Notable protocols like Synthetix and Zerolend have integrated or are in the process of integrating with Express Relay, benefiting from reduced costs and streamlined access to valuable DeFi transaction opportunities.
The launch of Express Relay at the Pyth Agora 2024 summit received support and enthusiasm from key figures in the industry, including Michael Lie of Flow Traders and Tim Wu of Wintermute. Express Relay, owned and governed by the Pyth DAO, aims to reduce value extraction by intermediaries and improve liquidation execution efficiency to combat MEV effectively. By providing access to an established network of searchers, Express Relay simplifies the deployment of new protocols and reduces integration costs for protocols across multiple blockchains.
In summary, Express Relay by Pyth Network offers a decentralized solution to MEV issues in DeFi transactions by connecting protocols with searchers through protocol-controlled auctions. By awarding transaction rights to the most competitive bid and eliminating the role of miners, Express Relay enhances market efficiency, reduces costs, and encourages competition among searchers. This innovative approach has garnered support and enthusiasm from industry leaders, signaling a positive impact on the fairness, efficiency, and decentralization of blockchain systems. With notable protocols already integrated or in the process of integrating with Express Relay, the future looks promising for addressing MEV challenges in the DeFi space.
