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Security and whitepaper
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apps/developer-hub/content/docs/express-relay/how-express-relay-works/index.mdx

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## Key Components
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### Off-chain Auction Server
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The auction server receives bids from searchers and determines winners based on bid amounts and other criteria. It then submits winning transactions to the blockchain in the optimal order.
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### On-chain Smart Contract
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The Express Relay smart contract validates that transactions have won the auction and enforces payment collection. It also handles revenue distribution between protocols and other stakeholders.
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### Permission System
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Express Relay uses a permission system to ensure only auction winners can execute protected operations. This prevents frontrunning and ensures MEV capture.
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## Benefits for Protocols
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Express Relay is suitable for any protocol with valuable, time-sensitive operations:
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- **Lending Protocols**: Liquidations of undercollateralized positions
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- **Perpetual Protocols**: Liquidations and funding rate updates
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- **Perpetual Protocols**: Liquidations and funding rate updates
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- **DEX Protocols**: Arbitrage opportunities and order book operations
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- **Derivatives Protocols**: Option exercises and settlement operations
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- **Cross-chain Protocols**: Bridge operations and relay transactions
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icon={<Gavel size={16} />}
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/>
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<IntegrationCard
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href="./opportunities"
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colorScheme="green"
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title="Opportunities"
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description="Understand available opportunities"
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icon={<Lightning size={16} />}
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/>
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<IntegrationCard
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href="./opportunities"
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colorScheme="green"
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title="Opportunities"
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description="Understand available opportunities"
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icon={<Lightning size={16} />}
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/>
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<IntegrationCard
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href="./permissioning"
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{
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"pages": ["pyth-core", "lazer", "express-relay", "entropy"]
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"pages": [
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"pyth-core",
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"lazer",
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"express-relay",
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"entropy",
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"whitepaper",
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"security"
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]
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}
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---
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title: Security
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description: Information about Pyth Network security audits and bug bounty program.
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---
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The Pyth software has undergone a number of audits from different firms.
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All of the audit reports are available in the [audits github repository](https://github.com/pyth-network/audit-reports).
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Pyth Network also offers a [bug bounty program](https://pyth.network/bounty) for reports of issues with the deployed code.
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Please visit the linked page for terms and conditions.
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---
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title: Whitepaper
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description: The official Pyth Network whitepaper outlining the protocol design, architecture, and economic model.
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---
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Growth in DeFi requires high-fidelity, time-sensitive, real-world data, direct from the source and made available on any L1 blockchain. Financial market data, however, is often accessible to only a limited set of institutions and users. Traditional markets typically maintain strict control over and access to both live and historical price feeds. Consequently, only a selected group of users has access to the most timely, accurate, and valuable information.
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The Pyth network is a next-generation oracle solution that aims to bring this valuable financial market data to the general public. The network does so by incentivizing market participants — trading firms, market makers, and exchanges — to share directly on-chain the price data collected as part of their existing operations. Pyth's data providers include some of the largest **traders**, **exchanges**, and **financial services** players who create unique high quality market data. This includes real world market data in **equities**, **fx, crypto, and metals with ambitions to scale across asset classes**. Data publishers include [GTS](https://pythnetwork.medium.com/new-pyth-data-provider-gts-555c4d0e362b), Jane Street, Hudson River Trading, [LMAX](https://pythnetwork.medium.com/new-pyth-data-provider-lmax-dd05264d1a16), [Virtu](https://pythnetwork.medium.com/new-pyth-data-provider-virtu-financial-ed09143f44d5), [BSX](https://pythnetwork.medium.com/new-pyth-data-provider-the-bermuda-stock-exchange-ccf3c04bd430), [CTC](https://pythnetwork.medium.com/new-pyth-data-provider-chicago-trading-company-64a457340443), and [many more](https://pyth.network/publishers/).
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The [Pyth Network Whitepaper](https://pyth.network/whitepaper) describes the mechanisms powering the protocol.
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The whitepaper was last updated in September 2023.

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