Elaborate on OEV Rewards (#178)

* Remove unnecessary quotation mark

* Refer to the screenshot

* Move the screenshot next to the reference

* Correct wording

* Improve Google search link

* Cross-link

* Rewrite OEV Rewards sections to elaborate on the revenue breakdown

* Fix hyperlink

Author: bbenligiray

docs/dapps/integration/index.md

@@ -126,17 +126,17 @@ To resume updates in such cases, simply purchase a new plan.
 
 :::
 
-If we overestimate the price, the remainder rolls over to the next plan purchased for the same network–data feed pair, which appears as a **discount** on Api3 Market.
+If we overestimate the price, the remainder rolls over to the next plan purchased for the same network–data feed pair, which appears as a **discount** on Api3 Market as seen below.
 Similarly, when a user purchases a plan for a data feed that is already active, the remainder of the payments made for earlier purchases will appear as a discount.
 
+<center><img src="./images/discount.png"></center>
+
 ::: info 💰 Financial
 
 In some cases, the discount allows you to get the plan for free.
 
 :::
 
-<center><img src="./images/discount.png"></center>
-
 ### Gas grants
 
 You can request a gas grant for your dApp by filling out [this form,](https://api3dao.typeform.com/to/TBTu8bJt) where you can ask us to purchase plans for you.
@@ -167,7 +167,7 @@ Follow the OEV Rewards [onboarding steps](/dapps/oev-rewards/index.md#how-to-get
 The term _first-party oracle_ is coined in the Api3 whitepaper and refers to an API provider that provides oracle services without depending on any middlemen.
 There are three conditions to be verified to check if an oracle service is first-party:
 
-- Each individual node must operate an independent API service as their primary business model (for them to be called API providers).
+- The operator of each individual node must also operate an independent API service as their primary business model for them to be called API providers.
 - Each API provider must certify their public key and sign their data with the respective private key.
 - Each API provider must make their signed data available themselves, without depending on third-party APIs, blockchains, or state channels.
 

docs/dapps/integration/security-considerations.md

@@ -62,7 +62,7 @@ Second, even when a Pyth oracle is an API provider, their data is aggregated and
 In general, when oracle services use an intermediary blockchain or state channel for delivery, they create a third-party system since the intermediary's consensus model will not match the aggregation model.
 Consider a system where 7 API providers supply data and 100+ node operators provide aggregation and data availability—this creates two points of failure, typical of third-party oracle designs.
 The secondary point of failure (the node operators) is typically weaker than the primary one (the API providers).
-Consequently, when dApps use Pyth data on Ethereum, users pay Ethereum gas fees while only receiving security equivalent to [Wormhole.](https://www.google.com/search?q=wormhole+down+%22pyth%22)
+Consequently, when dApps use Pyth data on Ethereum, users pay Ethereum gas fees while only receiving security equivalent to [Wormhole.](https://www.google.com/search?q=wormhole+outage+downtime+"pyth")
 
 :::
 
@@ -92,7 +92,7 @@ Similarly, our OEV implementation uses this mechanism, ensuring OEV updates cont
 
 ## Oracle Extractable Value (OEV)
 
-OEV updates provide identical guarantees to regular updates—they are on-chain aggregations of API provider-signed data—so they introduce no additional data correctness risk.
+OEV updates provide identical guarantees to regular updates—they are on-chain aggregations of API provider-signed data—so they introduce no additional [data correctness](#data-correctness) risk.
 The OEV auction mechanism allows winners to frontrun updates of an artificially delayed base feed, a tradeoff designed to benefit the dApp.
 
 Here's how the process works.

docs/dapps/oev-rewards/best-practices.md

@@ -14,8 +14,7 @@ If your contract integration is faulty, the suggestions below are unlikely to he
 
 :::
 
-OEV Rewards are proceeds from auctions in which OEV searchers participate.
-For the auction bids to be competitive, there must be multiple independent OEV searcher parties.
+For OEV auctions to be competitive, there must be multiple independent OEV searcher parties.
 An OEV searcher is a blockchain developer with specific expertise whose time is typically quite valuable.
 Therefore, for a maximum amount of OEV Rewards, searching for your dApp must be as easy as possible.
 
@@ -38,9 +37,9 @@ Since Api3 is also incentivized to maximize OEV Rewards, we will provide access
 
 :::
 
-The second way to attract OEV searchers and maximize OEV Rewards is to increase revenue.
+The second way to attract OEV searchers and maximize OEV Rewards is to increase incentives.
 For example, a lending platform that pays 10% of the position size as a liquidation reward will attract more attention than one that pays 5%.
-Similarly, a perpetual derivative exchange that properly uses Api3 data feeds is likely to yield a significant amount of OEV Rewards.
+Similarly, a perpetual derivative exchange that uses Api3 data feeds as intended is likely to yield a significant amount of OEV Rewards.
 
 ::: info 💰 Financial
 

docs/dapps/oev-rewards/index.md

@@ -10,8 +10,15 @@ pageHeader: dApps → OEV Rewards
 dApps that use traditional data feeds are constantly exploited by MEV bots that manipulate the order of operations around individual data feed updates.
 In practice, this causes dApps to suffer significant and continuous financial losses.
 As the antidote, Api3's OEV Network auctions off to OEV searchers the privilege to determine the order of operations around data feed updates.
-80% of resulting auction proceeds are paid to the dApp in the form of OEV Rewards.
-Assuming competitive auctions, OEV Rewards will be equal to the amount that would otherwise have been lost to the MEV bots.
+80% of the [resulting revenue](#breaking-down-oev-rewards) is paid to the dApp in the form of OEV Rewards.
+
+::: info 💰 Financial
+
+Api3 provides data feeds [at cost](/dapps/integration/index#pricing) and enables dApps to benefit from OEV Rewards on top.
+You might ask, "What's the catch?"
+There is none; OEV Rewards come at the expense of third parties who would otherwise solely benefit from MEV.
+
+:::
 
 Api3 data feeds work identically to traditional data feeds, which means that you do not need to modify your contracts in any way to use them.
 You can drop in Api3 data feeds to replace your current data feeds and immediately start earning OEV Rewards.
@@ -38,12 +45,23 @@ Use [this form](https://api3dao.typeform.com/to/FHhFIL41) to get in contact with
    :::
 5. You [integrate](/dapps/integration/contract-integration) the OEV Rewards-enabled Api3ReaderProxyV1 contracts.
 
-At the end of each month, Api3 will make available a report and 80% of the OEV revenue in the native gas token of the network where your dApp is deployed, with the remaining auction proceeds retained as the protocol fee.
+At the end of each month, Api3 will make available a report and 80% of the OEV revenue in the native gas token of the network where your dApp is deployed, with the remainder retained as the protocol fee.
 
-::: info 💰 Financial
+## Breaking down OEV Rewards
 
-Api3 provides data feeds [at cost](/dapps/integration/index#pricing) and enables dApps to benefit from OEV Rewards on top.
-You might ask, "What's the catch?"
-There is none; OEV Rewards come at the expense of third parties who would otherwise solely benefit from MEV.
+dApps receive 80% of the OEV revenue in the form of OEV Rewards.
+This revenue can be broken down into three parts:
+
+1. Proceeds of the auctions held on OEV Network
+2. Revenue from OEV searching activity facilitated by Api3 to ensure a baseline level of competition in the auctions (e.g., with a 20% profit margin, which should be easily beaten by organic searchers)
+3. Revenue from MEV searching activity facilitated by Api3 as a failsafe for the above
+
+::: info ℹ️ Info
+
+The OEV and MEV searching activity facilitated by Api3 is strictly limited to using data that is already available to the public, as documented in the [OEV searcher docs.](/oev-searchers/)
+This can be audited retrospectively by referring to data on OEV Network and the chain that the dApp is on.
+
+A side-effect of the above is that once organic searcher activity takes hold for a dApp, Api3 will no longer be able to generate searcher revenue, and the auction proceeds will constitute the entirety of the OEV Rewards.
+This will result in more efficient and robust capturing of OEV, and thus is a desirable outcome for the dApp.
 
 :::

docs/dapps/quickstart/index.md

@@ -117,4 +117,4 @@ For information about using this selection on mainnets, refer to [this section.]
 
 This guide should help you get started with a hackathon project.
 For production use of Api3 data feeds, please continue to the [integration section.](/dapps/integration/)
-You can also learn how to [get paid](/dapps/oev-rewards/) for using Api3 data feeds."
+You can also learn how to [get paid](/dapps/oev-rewards/) for using Api3 data feeds.