API3 (API3)
API3 is a decentralized API (dAPI) network founded by Heikki Vanttinen. It serves as a solution to provide decentralized finance (DeFi) data feeds to blockchain-based smart contracts without relying on third-party services.
Overview
API3 is designed to create, manage, and monetize decentralized APIs at scale. These dAPIs are blockchain-native services that aggregate data from multiple oracle nodes operated by providers, eliminating the need for intermediaries. The entire system, including the API3 project, relies on a decentralized governance model powered by the API3 token and the API3 DAO.
API3 enables first-party data providers, such as stock exchanges and credit reporting agencies, to run airnodes. These airnodes are open-source software that transmit data from providers. The code for airnodes is developed and maintained by a decentralized autonomous organization (DAO), where stakeholders share governance and maintenance responsibilities for the API3 framework.
| Ticker | API3 |
| Category | Decentralized Finance (DeFi) |
| Website | https://api3.org/ |
| @API3DAO | |
| Telegram | API3DAO |
| https://www.reddit.com/r/API3/ | |
| Contract Addresses | |
|---|---|
| ethereum | 0x0b...8a Copied! |
The platform aims to deliver traditional API services to smart contract platforms in a decentralized manner. API3 DAO, the governing body, plays a crucial role in this process. As of May 22, 2024, API3 DAO announced reaching $1 billion in Total Value Secured (TVS), highlighting its growing security and adoption in blockchain and DeFi sectors.
API3 QRNG
API3 QRNG is a public utility provided by API3 in collaboration with prestigious organizations. These organizations invest resources to offer oracle services, making them ideal providers for first-party oracle services.
Funding
API3 has successfully raised funds to support its development and expansion. In November 2020, it closed a $3 million seed funding round led by Placeholder VC, with participation from Pantera Capital, Accomplice, CoinFund, Digital Currency Group, and Hashed. In May 2024, API3 raised an additional $4 million, with contributions from DWF Labs, Spartan Group, Laser Digital, and Caladan.
The funds are intended to support ongoing development, marketing efforts, business development initiatives, and the OEV Network’s mainnet launch.
OEV Network
On January 29, 2024, API3 introduced the OEV Network, an order flow auction platform designed to capture Oracle Extractable Value (OEV) from dApps using API3 data feeds across various blockchains. This platform ensures that dApps receive the proceeds on their native chain by auctioning the rights to execute specific data feed updates to the highest bidder.
The OEV Network is powered by Polygon CDK, a framework for creating custom ZK-rollups, providing robust security and flexibility for innovative use cases.
API3 token
API3 is the native token of the API3 project, granting holders the right to participate in the governance of the API3 ecosystem through the API3 DAO. Token holders can stake their API3 tokens into the insurance pool to receive governance voting rights and weekly staking rewards.
In October 2020, the API3 team increased the token allocation for the public sale from 15% to 20% of the total supply, adjusting the distribution to provide more tokens for public sale.
Token utilities
API3 token utilities are designed to facilitate decentralized governance through three main mechanisms:
Staking
Staking incentivizes participation in the DAO and aligns user incentives. By staking API3 tokens, users gain governance voting rights and access to inflationary rewards while contributing to the security of API3 services.
Collateral
The collateral utility shares the DAO's operational risk among participants, encouraging them to minimize it. By exposing governing parties to risk, incentives are aligned with the DAO, ensuring sustainable governance for decentralized data feeds.
Governance
Governance utilities provide participants the ability to manage staking and collateral. Staking API3 tokens in the pool grants representation in the DAO, allowing holders to take part in decision-making processes.
API3 DAO
API3 delegates governance to a Decentralized Autonomous Organization (DAO), facilitating a collaborative effort to build and monetize dAPIs. The governance model is open and decentralized, allowing any API3 token holder to participate by staking in the DAO pool.
The DAO oversees high-level matters, such as staking incentives and grant proposals, ensuring responsible governance through the API3 token's utilities.
The DAO pool
The DAO pool is the central staking pool for API3 tokens, providing representation and inflationary rewards to stakers. The pool is integral to the DAO's governance strategy, balancing rewards and risks through service coverage.
Partners
API3 has established partnerships with various organizations, including QiDAO, Kinetix, Mantis, AirPuff, Mean Finance, TraderMade, Nodary, Twelvedata, NCFX, Minterest, PAC, CoinGecko, Shrike, Sigma Prime, Coinpaprika, Quickperps, Metavault, Finage, WeFi, Trail of Bits, Finnhub, Gravita, Orbit, Init Capital, IEX Cloud, Aurelius, ZeroLend, Juice, Quantstamp, Lendle, Myso Finance, Granary, among others.