Aave is considering integrating Chainlink's Smart Value Recapture (SVR) to improve the sustainability of its decentralized finance (DeFi) protocol.

Integration for Profit Redistribution

This integration aims to redirect profits generated from Maximal Extractable Value (MEV) back to the Aave ecosystem, benefiting both the protocol and its users.

Chainlink's SVR

Chainlink's SVR, developed in collaboration with BGD Labs and Flashbots, captures and redistributes profits from transaction back running, particularly in liquidation processes.

Recapturing Oracle-Related MEV

Aave plans to recapture around 40% of oracle-related MEV using Chainlink's infrastructure.

Aave's Confidence in Chainlink

This integration reflects Aave's confidence in Chainlink as a long-term partner in the DeFi space and demonstrates its commitment to maintaining its core liquidation mechanisms.

Setting a New Standard

The potential adoption of Chainlink SVR by Aave could set a new standard for MEV recapture in DeFi, fostering a more fair and efficient ecosystem.