A New Generation of Clearing Intelligent Oracle Machines Debuts: Breakthroughs in Performance and Efficiency

Recently, a significant breakthrough in Oracle Machine technology has attracted attention in the industry. This is the first Oracle Machine solution equipped with settlement intelligence, capable of actively enhancing the operational efficiency of lending protocols. The technology introduces a zero-latency Oracle Machine update mechanism, enabling the protocol to settle positions more quickly, improve loan-to-value ratios, and deliver better risk-adjusted returns.

This innovation dynamically captures the extractable value of the Oracle Machine (OEV) during the price on-chain process and returns it to the protocol, which can be used for revenue, enhancing user returns, or reducing borrowing costs. It is worth noting that this technology does not introduce liquidation delays or additional safety assumptions.

Currently, this technology has been launched on Unichain, providing security guarantees for multiple lending protocols, and plans to deploy on more chains. It can be enabled on any supported data source and chain without code changes or additional engineering investment.

The key advantages of this technology include:

1. Significantly enhance lending protocol performance, achieve instant settlement, unlock higher LTV and better yields.
2. Zero-latency settlement, instant price updates when it can be settled.
3. Native OEV capture, capturing liquidation value through sealed auctions and returning to the protocol.
4. Atomic-level transaction processing, price updates, settlements, and OEV payments are completed in about 300 milliseconds.
5. No integration work is required, and it can be activated instantly on supported data sources and chains.

This technology is seen as a fundamental transformation in the field of Oracle Machine. It is designed specifically for protocols, rather than built around protocols, providing a significant advantage for lending protocols in yield competition, while addressing the long-standing OEV efficiency issue in DeFi.

Traditional push-based data sources suffer from low update frequency and insufficient granularity, which limits the performance of lending protocols. The new technology has achieved on-demand instant updates for push-based data sources for the first time. As long as a new price can trigger a liquidation, anyone can invoke the update to achieve zero-latency price updates.

In the lending space, settlement speed is crucial. DeFi protocols that adopt this new technology can complete settlements faster and more efficiently than their competitors, thereby increasing the LTV ratio and providing users with higher returns and value.

The OEV problem has always been a significant vulnerability in blockchain Oracle Machines, with conservative estimates of total losses exceeding $500 million. The new technology achieves efficient OEV capture through innovative application-specific sorting technology, without introducing additional risks.

The technology utilizes an off-chain auction mechanism to complete the bidding for clearing rights within milliseconds. After the auction ends, the system atomically updates the data source, executes the clearing, and settles the auction. This design ensures the indivisibility of the Oracle Machine updates and clearing, avoiding the risks of front-running and missed clearing.

It is worth mentioning that this technology does not require complex technical integration. It can be enabled natively on supported price sources and on-chain, providing zero-latency settlement and OEV capture for all protocols using the price source. The protocols do not even need to change the data source contract address; they only need to apply for activation and provide an address to receive OEV.

The emergence of this technology marks the entry of blockchain Oracle Machine into a new era. Lending protocols that adopt this technology will be able to surpass their competitors with more aggressive risk parameters, bringing higher returns to users. This is likely to make the technology the preferred choice for all lending protocols.

With the further development and application of technology, we have reason to expect a qualitative leap in the DeFi ecosystem in terms of efficiency, security, and user experience.