The Aave community has voted for integrating Chainlink’s Smart Value Recapture feature to reclaim millions in maximum extractable value lost to oracles.
Chainlink Integration into Aave
Aave, a top decentralized finance protocol, has integrated Smart Value Recapture on the Ethereum mainnet following a community vote. Chainlink introduced this MEV recapture solution in December 2024.
Goals and Standards of the New Integration
With the implementation of Smart Value Recapture, Aave and Chainlink aim to recover oracle extractable value previously leaked to blockchains. It also enables creating a sustainable economic model by utilizing oracles.
Revenue Distribution and Currency Support
Aave plans to utilize SVR to reclaim liquidation MEV from Threshold Bitcoin (tBTC), as well as LBTC, AAVE, and LINK, with more markets to follow. Revenue from recaptured value will be split 65% for Aave and 35% for Chainlink's communities during the first six months. Chainlink plans to convert its SVR fees portion into LINK for distribution to network service providers.
The integration of Smart Value Recapture solutions opens up new opportunities for Aave and the DeFi ecosystems, promoting increased economic efficiency and security.
