• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Chainlink Introduces Value Recapture Solution for DeFi Protocols

user avatar

by Giorgi Kostiuk

2 years ago

The oracle network Chainlink has announced the launch of a solution aimed at helping decentralized finance protocols reclaim maximal extractable value.

New Opportunity from Chainlink

Chainlink has introduced Smart Value Recapture (SVR), a solution for DeFi applications to recapture non-toxic maximal extractable value from Chainlink Price Feeds. Collaborators in the development of SVR include Aave DAO, BGD Labs, and Flashbots alongside Chainlink.

How Smart Value Recapture Works

SVR works by cutting unnecessary third-party dependencies. It also eliminates the need for intermediary smart contract integrations, leveraging Flashbots for enhanced efficiency and security. This functionality relies on Flashbots’ “Dual Aggregator” contract architecture.

Based on real-world testing, we believe Chainlink SVR can expect to achieve a realistic value recapture rate of approximately 40% (i.e., for every $100 that would have been leaked via liquidation MEV, $40 was recaptured).Chainlink Team in the blog announcement

Prospects and Implementation

Currently live on testnet, Chainlink SVR is preparing for its mainnet launch on Ethereum. A proposal for integration into Aave is being discussed, potentially providing the protocol with an additional revenue stream and supporting the economic sustainability of Chainlink's oracles. Future improvements may include increased decentralization, cross-chain capabilities, and gas efficiency enhancements.

Chainlink SVR offers new opportunities for DeFi protocols to reclaim some value lost during liquidations and maintain economic sustainability by reducing dependency on intermediaries.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Upbit Conducts Major Internal Wallet Reorganization of SHIB

chest

South Korean exchange Upbit has reorganized 864 billion SHIB across its internal wallet addresses as part of a standard internal rebalancing process aimed at managing liquidity and security.

user avatarTomas Novak

Avalanche Staking Value Reaches $20.477 Billion

chest

Avalanche's staking value has reached approximately $20.477 billion, indicating strong network participation.

user avatarMaya Lundqvist

Helicon Upgrade Activated on Fuji Testnet

chest

The Helicon upgrade has been activated on the Fuji testnet, marking a significant step in Avalanche's development.

user avatarKaterina Papadopoulou

Avalanche Awards Grant to YourGrails for Tokenization of Physical Trading Cards

chest

Avalanche's Team1 Accelerator awarded a $30,000 grant to YourGrails for tokenizing physical trading cards, supporting the growth of the real-world asset ecosystem.

user avatarLeo van der Veen

Aave Governance Considers Wind Down of Low-Use V3 Markets

chest

Aave governance is reviewing a proposal to wind down six low-adoption V3 markets and offboard dozens of reserves to reduce operational complexity.

user avatarLi Weicheng

Uniswap Introduces New Launches Beta Tab for Enhanced Token Discovery

chest

Uniswap has introduced a new Launches beta tab in its web app to enhance the discovery of new tokens across various launchpads.

user avatarAisha Farooq

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.