Technological revolution: cutting out intermediaries to bring data sources on-chain
Traditional oracles (like Chainlink) rely on third-party nodes to aggregate data, while API3's first-party oracle model allows data sources like Bloomberg and CoinGecko to operate their own nodes directly. The core weapon of this architecture is Airnode — a plug-and-play open-source hardware that enterprises can deploy just like configuring an API gateway, enabling direct data flow to the blockchain.
Killer case: The tokenized fund BUIDL under BlackRock uses API3 to verify on-chain net asset value, reducing data latency from 15 seconds with Chainlink to 3 seconds, and lowering gas costs by 40%. This 'direct sourcing' model is disrupting traditional auditing processes on Wall Street.
Staking is insurance, governance is profit
The API3 token is not only a governance certificate but is also designed as a risk hedging tool:
Staking mining: annual yield of 5%-8%, while providing insurance compensation for losses caused by data errors (the compensation rate in 2024 is only 0.3%);
30% of dAPI subscription fees are used for buybacks and burns, creating a deflationary spiral. Current circulation is 86.42 million tokens, with a total supply locked at 125 million tokens, achieving better inflation control than similar projects.
In Q1 2025, the number of API3 staking addresses surged by 217%, with the proportion of staked tokens in circulation reaching 63%, far exceeding Chainlink's 35%. This mechanism of 'voting with real money' deeply binds community and project interests.
When a lending protocol triggers liquidation, API3's OEV network uses an auction mechanism, allowing seekers to bid for priority update rights, returning 90% of the profits to dApps. This is equivalent to recreating an 'on-chain Wall Street' at the oracle layer — in just March 2025, Aave captured an additional $2.3 million in profits through this feature.
Ambition behind $1 billion TVS
In 2025, new support will be added for high-performance chains like Berachain and Sui, with daily dAPI call volume exceeding 5 million;
Tokenized fund in partnership with Franklin Templeton, with on-chain asset custody reaching $7.4 billion;
Integrating zk-SNARKs to achieve privacy computing, providing verifiable training data for AI models.
These actions have caused API3's total locked value to soar from $320 million to $1 billion within 3 months, becoming an indispensable infrastructure in the RWA track.
Don't forget the pits under your feet while gazing at the stars
Despite the advanced concept of first-party oracles, mainstream data providers like CoinGecko have not fully integrated, raising doubts about the speed of ecosystem deployment;
The U.S. SEC is investigating the legal classification of decentralized oracles, and API3's insurance pool model may touch the red line of securities issuance;
In Q2 2025, 12 million private placement tokens will be unlocked, accounting for 14% of the current circulation, putting short-term price pressure.
If the RWA market size exceeds $500 billion by 2025, API3's market value aims for $7.5 billion (20x increase) — provided the team can withstand the onslaught of giants. Now, are you ready to bet on the data sovereignty revolution of Web3?
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