Aave Embraces Chainlink’s Smart Value Recapture for MEV Recovery
Aave, a leading decentralized finance (DeFi) platform, has adopted Chainlink’s Smart Value Recapture (SVR) feature. This move aims to recover millions in maximum extractable value (MEV) lost to oracles. The decision came after a community vote.
SVR was introduced by Chainlink in December 2024. It helps platforms like Aave reclaim oracle-related MEV. This integration sets a new standard for revenue generation in the defi space.It also supports a sustainable economic model for platforms using oracles.
The deployment is a collaborative effort. It involves Chainlink, BGD Labs, adn the Aave Chan Initiative.Flashbots, a research platform, also contributed. SVR will help Aave recapture MEV through Chainlink’s oracle networks and flashbots’ MEV-Share service.
- SVR will initially support Threshold Bitcoin (tBTC), LBTC, AAVE, and LINK.
- Revenue will be split 65% for Aave and 35% for Chainlink communities in the first six months.
Ernesto Boado, co-founder of BGD Labs, praised the partnership. He said, “SVR and its OEV recapturing model are a responsible innovation for DeFi.”
Chainlink plans to convert its share of SVR fees into LINK. This will be distributed to network service providers. This step ensures fair compensation for those supporting the network.
