API3 is a first-party oracle protocol — data providers (exchanges, weather services, financial data companies) run their own oracle nodes (Airnodes) to push data directly on-chain, eliminating the third-party middleman that traditional oracle networks like Chainlink require. This "first-party" approach reduces trust assumptions because data comes directly from the source rather than through intermediary node operators. API3 also provides dAPIs (decentralized APIs) — aggregated data feeds from multiple first-party oracles that DeFi protocols can use for price feeds and other data needs.
Heikki Vanttinen and Burak Benligiray founded API3 in 2020. The first-party oracle concept challenged Chainlink's third-party node operator model. Airnodes deployed across multiple chains. dAPIs launched as aggregated first-party feeds for DeFi protocols.
API providers deploy Airnodes — lightweight oracle nodes that push their data directly on-chain. No intermediary operators needed. dAPIs aggregate multiple Airnode feeds for decentralized price data. API3 DAO governs the protocol. Users can purchase OEV (Oracle Extractable Value) capture to reclaim value that would otherwise leak to MEV bots.
API3 has a total supply of approximately 115 million tokens. API3 is staked in the DAO for governance and provides insurance backing for dAPIs.
Data comes directly from the source — no intermediary trust assumptions.
Lightweight oracle deployment for data providers.
Reclaims oracle extractable value that typically leaks to MEV bots.
Community-governed protocol with staking-backed insurance.
Chainlink's massive market share makes competing for oracle integrations difficult.
Convincing API providers to run their own nodes requires sales effort.
Fewer data providers than Chainlink's extensive operator network.
Some data types are better served by aggregated third-party networks.
Chainlink uses third-party node operators who aggregate data from multiple sources. API3 uses first-party Airnodes where data providers push their own data directly on-chain. API3 eliminates the middleman; Chainlink provides aggregation across many operators. Different trust models for different use cases.
Oracle Extractable Value — value that leaks when oracle price updates create arbitrage opportunities (e.g., liquidation frontrunning). API3's OEV capture lets protocols reclaim this value through oracle update auctions rather than losing it to MEV bots.
API3 offers an alternative oracle model, not a complete replacement. First-party oracles work best when data providers are willing to run nodes. Chainlink's third-party model is better for aggregating data from providers who don't want to operate infrastructure. Both models have valid use cases.
View live API3 price, charts, and market data on the API3 detail page.
Learn how to purchase: How to Buy API3