Aave Protocol has integrated Chainlink Smart Value Recapture on Ethereum Mainnet for improved OEV recapture in partnership with Chainlink and BGD Labs.
Implementation of Chainlink SVR on Ethereum
Aave Protocol, a decentralized and open protocol, announced in an X post the implementation of Chainlink Smart Value Recapture. This integration allows Aave to enhance user experience and create a new standard for decentralized finance apps that can retrieve a significant value related to oracles, which was previously leaked to blockchain ecosystems.
Features of Smart Value Recapture
Chainlink Smart Value Recapture is a cutting-edge oracle solution allowing decentralized apps to retrieve Maximal Extractable Value (MEV) using Chainlink Price Feeds, also known as Oracle Extractable Value (OEV). Key contributors such as Aave DAO contributors, Flashbots, and BGD Labs are involved in the project.
Shared Revenue Distribution
According to Aave, the integration of Chainlink SVR enables efficient recapture of liquidation MEV, starting with an initial group of markets ($LINK, $AAVE, $LBTC, $tBTC). Further market inclusion is planned. The OEV revenues recaptured will be shared between the Chainlink and Aave communities.
The collaboration between Aave and Chainlink, including the SVR integration, enhances OEV recapture and creates a more balanced DeFi economy.
