Pyth Network has officially launched its newest product, Express Relay, on mainnet. This product aims to address the persistent issue of Miner Extractable Value (MEV) in DeFi transactions. This aspect of on-chain finance was previously considered unavoidable.

Express Relay Reduces MEV Costs for DeFi Protocols

Express Relay connects DeFi protocols directly with a network of established searchers through protocol-controlled auctions for transactions such as liquidations. There are several searchers which are already integrated with Express Relay. These include Flow Traders, Flowdesk, Caladan, Auros, Tokka Labs, Wintermute, and Swaap Finance.

MEV means miners or validators reaping most of the value from DeFi protocol transactions from searchers’ blockspace tips. Express Relay does this by enabling the searcher with the highest bid to perform the transaction and so eliminating the role of the miners.

This competitive bidding allows searchers to bid more intensely over transaction value or DeFi protocols give higher liquidation rewards. Therefore, Express Relay contributes to the development of a more transparent DeFi economy, which saves the protocols’ funds that can be invested in other projects or returned to consumers.

Essentially, Express Relay allows DeFi protocols to minimize the MEV costs and, in particular, those linked to the definition of liquidation rewards. Synthetix, Synonym, Keom, Jax Finance, Vela Exchange, Zerolend, Ionic and Fulcrom Finance have either implemented or are in the process of implementing Express Relay to mitigate the effects of MEV. Altogether, these protocols amount to $1 billion in total locked value across 11 different blockchains.

Express Relay Reduces Intermediary Value Extraction

New protocols are facilitated by Express Relay’s network of searchers, enabling faster implementation. This development allows protocols to avoid the need for investing in building their own liquidator and searcher networks from the ground up which is costly. For searchers, Express Relay aggregates high-quality DeFi transactions across multiple protocols and blockchains, saving time and resources for negotiation with individual protocols.

The Express Relay primitive which is managed through a Pyth DAO, was introduced at the Pyth Agora 2024 event on July 11, that was held during the Ethereum Community Conference. This presentation was facilitated by contributors from Doure Labs and Pyth Data Association.

These are statements from some officials in the industries regarding the prospects of Express Relay. Flow Traders highlighted how the solution helps to perform smooth liquidations. On the other hand, Wintermute mentioned that it contributed to the minimization of the extraction of value by intermediaries. Meanwhile, Synthetix underlined that it improves liquidity for on-chain derivative markets, and lastly, Zerolend outlined that through MEV-free transactiopn, it provides an enhanced experience.