API3 believes the root of the problem is MEV unaware oracle solutions. Today, oracles update blindly, ignoring the impact of their updates on MEV. In the case of @aave , oracle updates are what actually enable liquidations to begin with.

What if oracles updated based on MEV aware opportunities? What if we allowed the market to compete for oracle updates that have significantly more value than others? And what if we gave all the resulting money of this competition back to the dApps? What if we... OEV-Share?

dApps alone can't do much to solve this value leakage without making huge efforts on their end and taking on more risk. Projects like @eulerfinance have been trying to combat it with their own dutch auction design for liquidations.