API3

API3 is a decentralized oracle project that lets data providers run their own oracles and deliver first-party, cryptographically signed data on-chain. Its signature innovation is Oracle Extractable Value (OEV), a system that auctions the right to trigger oracle updates and returns the proceeds to the applications using the data rather than leaking that value to searchers and validators.

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What Is API3?

API3 is a decentralized oracle project that connects off-chain data to blockchain smart contracts through a first-party model. Instead of placing third-party node operators between a data source and the blockchain, API3 has the data providers themselves run the oracle. This removes a layer of intermediaries from the pipeline, with the goal of improving transparency, security, and accountability, since the entity that originally produces the data is also the one signing and delivering it on-chain.

Overview - Table of Contents
What Is API3?
Getting Started With API3
How To Get A API3 Wallet?
API3 Resources
How To Buy API3?
Latest API3 News

API3 was founded in 2020 by Heikki Vanttinen and Burak Benligiray. The project raised roughly $3 million in a seed round led by Placeholder VC, followed by a public token sale in December 2020 that raised approximately $23 million. Development and governance are coordinated through the API3 DAO, a decentralized organization that manages the treasury, oracle operations, and protocol decisions.

The technical foundation of API3 is Airnode, a lightweight, serverless oracle node that a data provider can deploy without running dedicated infrastructure or holding a token balance to pay for gas. Airnode pushes the provider's own signed data on-chain, and individual feeds are aggregated into data feeds known as dAPIs (decentralized APIs). Because the data is signed by the source, applications can verify its origin directly rather than trusting an anonymous relay of node operators.

API3's most distinctive contribution is Oracle Extractable Value, or OEV. Every time an oracle updates a price, that update can create a profitable opportunity, for example the right to liquidate an undercollateralized loan. In most oracle designs this value is captured by outside searchers and validators through maximal extractable value (MEV), and it leaks away from the applications that actually rely on the data. API3 instead runs OEV auctions that sell the right to trigger an oracle update, then returns the auction proceeds to the decentralized application (dApp) consuming the feed. In effect, value that would otherwise be extracted from a protocol is recaptured and paid back to it.

The API3 token is an ERC-20 token on Ethereum. The verified contract, named Api3Token, is deployed at 0x0b38210ea11411557c13457D4dA7dC6ea731B88a and has a total supply of roughly 175.09 million tokens, of which about 143.5 million were circulating at the time of writing, giving a market capitalization of around $32 million. The token is used for staking and governance: participants stake API3 into the DAO to help collateralize the oracle service and to vote on proposals, and stakers are exposed to a coverage mechanism that can be drawn on if a data-feed malfunction causes damage to users.

API3 competes primarily with Chainlink, the largest oracle network, but takes a different architectural stance. Chainlink relies on independent third-party node operators that pull from data aggregators, whereas API3 removes those middle operators and puts the data providers directly on-chain. Supporters argue the first-party approach reduces attack surface and improves traceability; critics note that Chainlink's broader network and longer track record still give it far larger adoption. Like most tokens from the prior cycle, API3 has traded well below its earlier highs.

API3 has published its oracle infrastructure under the banner of the Oracle Stack, which combines Airnode, dAPIs, and the OEV system into a single offering. The project has also faced scrutiny: a Token Transparency Report reviewing crypto projects flagged some disclosure gaps in API3's public reporting. No confirmed hack, exploit, or lawsuit involving the protocol was found during research, though the absence of a known incident should not be read as a guarantee of security.

Getting Started With API3

Getting started with API3 usually means acquiring the token to stake and participate in DAO governance, or integrating its data feeds as a developer. The steps below cover the token holder path:

Step 1: Set up an Ethereum-compatible wallet such as MetaMask, since API3 is an ERC-20 token on Ethereum.
Step 2: Buy API3 on a centralized exchange or swap for it on an Ethereum decentralized exchange.
Step 3: Transfer your API3 to your own wallet for self-custody rather than leaving it on an exchange.
Step 4: Stake your API3 into the API3 DAO to help secure the oracle network, earn staking rewards, and gain the ability to vote on governance proposals.

Developers who want to consume data instead of holding the token can browse available feeds and integration guides through the API3 Market and the project documentation.

How to Get a API3 Wallet?

API3 is an ERC-20 token on the Ethereum blockchain, so it can be stored in any wallet that supports Ethereum and ERC-20 tokens:

MetaMask

MetaMask is the most widely used Ethereum wallet, available as a browser extension and mobile app. It supports API3 and all other ERC-20 tokens, and it connects directly to Ethereum decentralized exchanges and the API3 staking interface.

Rabby

Rabby is a browser-extension wallet focused on Ethereum and EVM chains. It offers clear transaction previews and automatic network switching, which can make interacting with DeFi applications and the API3 DAO more straightforward.

Ledger Hardware Wallet

For long-term storage and maximum security, a Ledger hardware wallet keeps your private keys offline. Ledger supports Ethereum and ERC-20 tokens including API3, and it can be paired with MetaMask or Rabby so you can sign transactions while your keys stay on the device.

API3 Resources

How to Buy API3?

API3 is available on both centralized and decentralized exchanges. As an ERC-20 token, it can be traded anywhere that supports Ethereum-based assets.

Centralized Exchanges

API3 has been listed on several major centralized exchanges, including Binance, Coinbase, KuCoin, and Gate.io, typically against stablecoin pairs such as API3/USDT. Availability and trading pairs vary by platform and region, so confirm that your chosen exchange currently supports API3 before signing up. After buying, you can withdraw the tokens to your own Ethereum wallet for self-custody or staking.

Decentralized Exchanges

Because API3 is an ERC-20 token, it can be swapped directly on Ethereum decentralized exchanges such as Uniswap. Connect an Ethereum wallet like MetaMask, provide the verified API3 contract address to be sure you are trading the correct token, and swap ETH or a stablecoin for API3. Keep in mind that on-chain swaps require ETH to cover gas fees.

Latest API3 News

The most significant recent development for API3 was the launch of the OEV Network in July 2024, an optimistic rollup built on Arbitrum Orbit dedicated to recapturing oracle-related MEV and returning it to applications. Lending protocols including Lendle were among the early integrations. API3 has since folded the OEV Network into its broader Oracle Stack, presenting Airnode, dAPIs, and OEV as an integrated oracle offering.

Alongside these product releases, API3 has continued to expand its data-feed catalog across major EVM networks through the API3 Market. The token's price has remained well below its previous-cycle highs, and a Token Transparency Report noted gaps in the project's public disclosures, points worth weighing against the technical progress the team has shipped.