Discover how to buy API3 (API3) in Australia on an exchange you can trust

What is API3?

API3 is a decentralized infrastructure project focused on connecting traditional web APIs to blockchain applications in a trust-minimized way. It enables data providers to run their own first-party oracles—called Airnodes—so that decentralized applications (dApps) can consume real-world data (such as price feeds, weather, identity, off-chain computation results) without relying on intermediary oracle networks. API3’s thesis is that first-party oracles reduce attack surfaces, costs, and latency versus third-party oracle middlemen, while aligning incentives directly with data providers.

The API3 ecosystem centers around:

• Airnode: A lightweight, serverless oracle node that API providers can deploy to offer their data directly on-chain.
• dAPIs: Decentralized API data feeds aggregated from multiple first-party oracles, delivered on-chain and maintained via on-chain governance and staking.
• OEV Network: An order flow and oracle extractable value marketplace to recapture value created around oracle updates and pass it back to protocols.
• The API3 token (API3): A governance and staking token used to participate in decentralized governance, secure the network via staking and slashing, and fund on-chain service coverage.

By focusing on first-party oracle design and standardized tooling for API providers, API3 aims to deliver verifiable, transparent, and cost-effective data feeds to multiple blockchains and L2s.

How does API3 work? The tech that powers it

API3 is composed of several interoperable components and mechanisms:

1. Airnode (first-party oracle)

• Airnode is a serverless oracle gateway that API providers deploy within their own cloud environments (e.g., AWS Lambda, GCP, Azure) or infrastructure.
• It bridges off-chain REST APIs to on-chain smart contracts, exposing specific endpoints in a blockchain-readable format.
• Because it is operated directly by the API provider, there’s no data “relay” hop handled by a third-party oracle. This reduces trust assumptions and risk of manipulation or downtime induced by intermediaries.
• Airnode is designed for low-maintenance operation, enabling Web2 providers to service Web3 with minimal operational overhead, leveraging familiar devops patterns and API keys.

2. dAPIs (decentralized APIs)

• dAPIs are on-chain data feeds (e.g., price feeds) aggregated across multiple Airnodes. They provide resilient, transparent, and auditable data to smart contracts.
• Each dAPI feed can be configured with parameters such as aggregation logic, update thresholds, heartbeat intervals, deviation triggers, and data source weighting.
• dAPIs are updated permissionlessly when conditions are met; updates can be sponsored by integrators or orchestrated via API3’s update mechanisms to keep feeds timely and cost-effective.

3. Oracle Extractable Value (OEV) Network

• Oracle updates can generate extractable value for searchers and liquidators in DeFi (e.g., when a price update triggers liquidations). Traditionally, this value is captured by off-chain actors and block producers.
• API3’s OEV Network is an auction-based system that internalizes part of this value: parties bid for the right to submit updates, and proceeds can be routed back to the protocols that rely on those updates. This aims to improve capital efficiency and align incentives for integrators.

4. Staking, slashing, and service coverage

• The API3 token can be staked in the governance pool. Stakers participate in DAO governance and can underwrite service coverage—economic guarantees to consumers (e.g., protocols using dAPIs).
• In the event of oracle misbehavior or downtime that meets predefined criteria, coverage funds can be used to compensate affected users, and stakers may be subject to slashing. This creates a security budget and aligns incentives for reliability and transparency.

5. Cross-chain deployment

• API3 supports multiple EVM chains and L2s, and has made progress toward non-EVM ecosystems via cross-chain messaging and deployment of Airnodes on networks where developers need data.
• Data delivery can be push-based (regular or triggered updates) or pull-based (request–response), depending on cost, latency, and the application’s needs.

6. Governance and the API3 DAO

• API3 is governed by token holders via the API3 DAO. Key decisions include feed composition, onboarding of data providers, allocation of incentives, and risk parameters for service coverage.
• Proposals and voting occur on-chain, providing transparent evolution of the protocol.

In practice: an exchange-rate dAPI might pull BTC/USD from several reputable first-party providers (e.g., institutional data vendors, exchanges), aggregate the values with outlier resistance, and push updates to target chains. DeFi protocols integrate the feed to power lending, derivatives, and collateralization logic.

What makes API3 unique?

• First-party oracle design: API3’s strongest differentiator is enabling data providers to serve data on-chain themselves via Airnodes. This reduces reliance on third-party oracle operators, improving data provenance, transparency, and minimizing opportunities for manipulation.
• Serverless, low-ops architecture: Airnode’s design emphasizes ease of deployment for Web2 providers with minimal blockchain expertise, growing the supplier base of high-quality data.
• dAPIs with coverage and slashing: API3 integrates economic guarantees by tying data quality and uptime to staked collateral and a governed coverage mechanism—aligning network security with real economic stakes.
• OEV recapture: By auctioning the right to submit meaningful updates, API3’s OEV Network aims to return value to protocols, potentially lowering their cost of oracle services and improving end-user outcomes.
• Open governance and transparency: API3 DAO openly manages feed configurations, provider onboarding, and risk policies, giving integrators a clear view into how their data infrastructure is run.

API3 price history and value: A comprehensive overview

Note: The following is a high-level overview for informational purposes and is not financial advice. Always verify prices and market data from reputable aggregators and exchanges.

• Token: API3 (ERC-20)
• Utility: Governance, staking for DAO participation and service coverage, economic alignment of oracle operations and risk management.

Historical context:

• Initial launch phases occurred during the 2020–2021 cycle, with API3 gaining attention as a “first-party oracle” alternative.
• As with many infrastructure tokens, API3’s price has historically correlated with broader crypto market cycles—exhibiting significant volatility during bull and bear phases.
• Key drivers of perceived value include: growth in dAPI adoption by DeFi protocols, number and reputation of participating data providers, cross-chain expansion, effectiveness of OEV recapture, and the robustness of staking/coverage economics.
• Catalysts and risks:
  • Catalysts: New major protocol integrations, audits and security track record, expansion to new chains, improvements in Airnode tooling, and demonstrable OEV revenue share to integrators.
  • Risks: Competition from established oracle networks, security incidents or feed failures, governance misalignment, or slower-than-expected provider adoption.

For up-to-date price, market cap, circulating supply, and on-chain metrics, consult sources such as CoinGecko, CoinMarketCap, Messari, and project documentation.

Is now a good time to invest in API3?

This depends on your thesis, risk tolerance, and time horizon. Consider the following framework:

• Fundamentals

  • Problem–solution fit: If you believe first-party oracles will displace or complement third-party oracle networks due to better provenance and economics, API3 is a direct bet on that thesis.
  • Adoption metrics: Review current dAPI integrations, TVS/TVL secured, number of Airnodes operated by reputable data providers, and multi-chain footprint. More real usage increases fundamental value.
  • Security posture: Examine audit reports, incident history, uptime of feeds, and clarity of service coverage terms. Oracle reliability is mission-critical in DeFi.

• Token economics

  • Staking and coverage: Understand how staking yields are generated, slashing conditions, and how coverage backstops risk. Sustainable, usage-linked yields are generally healthier than purely emissions-based rewards.
  • Value capture: Evaluate whether OEV recapture and dAPI fees accrue to token stakers and/or treasury in a durable way.

• Market conditions

  • Macro cycle: Oracle tokens often move with DeFi activity and broader crypto cycles. Accumulating during periods of subdued sentiment can be advantageous if fundamentals are improving.
  • Competition: Compare API3’s features, costs, and performance to alternatives. Assess whether API3’s first-party approach delivers measurable advantages in practice.

• Due diligence checklist

  • Read the API3 whitepaper and latest docs.
  • Review DAO proposals and decisions.
  • Check independent audits and monitoring dashboards.
  • Verify integrations by looking at on-chain references and protocol documentation.
  • Diversify and size positions according to risk tolerance.

None of this is investment advice. If you’re unsure, consult a financial professional and consider paper-trading your thesis before committing capital.