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KeeperDAO (ROOK)

Since September 2021, we’ve been following the development of KeeperDao’s Act IV, the Coordination game. The community and developers around the world have been experimenting and enhancing this new feature to find any value that’s able to be extracted from the DeFi ecosystem.

On April 3, The KeeperDao community passed a proposal to relay all GMX oracle updates through the KeeperDAO Coordination protocol to discover and settle OEV (Oracle Extractable Value).

This will bring more value to the protocol and its liquidity pool. In return, this will enhance returns for liquidity providers while preventing costs imposed onto users by third parties. GMX is a leading decentralized spot and perpetual futures exchange, processing approximately $30 million in daily volume on Arbitrum and $10 million in daily volume on Avalanche.

Oracles on GMX are supported by Chainlink, which source price updates from a number of decentralized venues. Because price updates occur per-block, depending on the network, there is a time period where you can create arbitrage opportunities before the price is reported to the next block.

By relaying all GMX price updates through the Coordination Game feature, it can find significant changes in the price between updates and can create opportunities for arbitrage when the update occurs.

The value of this arbitrage, along with related opportunities such as liquidation resulting from the same phenomenon, has been termed Oracle Extractable Value.

The KeeperDao Community is ecstatic about this historical integration. It represents the first application of the KeeperDAO Coordination protocol on both an Ethereum Layer-2 (Arbitrum), and a non-Ethereum blockchain (Avalanche).