• 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

a year 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

XRP Trading Volume Reaches $386 Billion Amid Market Fluctuations

chest

XRP's trading volume has surged to $386 billion in a 24-hour period, indicating active market participation and potential buy pressure.

user avatarGustavo Mendoza

XRP Wallets Surpass 8 Million Despite Price Decline

chest

The number of wallets holding XRP has exceeded 8 million, indicating strong retail participation despite a significant drop in the token's price.

user avatarMaria Fernandez

Solana Price May Rally in April After Prolonged Decline

chest

Solana price is expected to rally in April after a prolonged decline, potentially reaching above 100 again.

user avatarRajesh Kumar

Final Text on Stablecoin Yield Compromise Delayed

chest

The release of the final text on the stablecoin yield compromise has been delayed due to concerns over the markup session.

user avatarLuis Flores

Stablecoin Yield Dispute Approaches Resolution

chest

The stablecoin yield dispute, a key issue delaying the crypto market structure bill, is nearing resolution after recent meetings.

user avatarMiguel Rodriguez

Strategy Resumes Bitcoin Acquisitions with $329.9 Million Purchase

chest

Strategy has resumed its buying spree after a two-week gap, acquiring 4,871 BTC for $329.9 million.

user avatarMaria Gutierrez

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.