The Aave Dao Community has the integration of Chainlink Smart Value Recapture (SVR) on the Ethereum MAINNET, with the aim of restoring the value of the extraweer from Oracles (Oracle extremisable value, OEV) related to liquidations and converting it into a new source of income for the protocol.
The decision, confirmed by a vote on the chain, marks a turning point for decentralized finances (Defi), which uses a sustainable model that the value that is technically lost during liquidation operations uses in the system.
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Aave integrates Chainlink SVR on Ethereum: A New Era for Defi
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The Kettinglink SVR With technology, Defi protocols can recapture the maximum extremable value (Along)) Generated by the use of the price feeds of Chainlink, in particular during the liquidations of insufficient colland loans. Historically, this often million dollar value is recorded by blockchain validators involved in the blockbuilding process, without any return for the Oracle Infrastructure or the Defi protocol.
The integration, developed in collaboration with BGD laboratories, flashbots and other contributors from the Aave Dao, includes a solution that jointly uses the Chainlink Oracle Network and the MeV-Share service from Flashbots. SVR is specifically designed to be able to handle backing liquidationsAvoiding vulnerabilities for front or sandwich attack techniques, which guarantees safe and transparent implementation.
Redistribution of the OEV: who wins what
According to what has been established, the restored OEV value will initially be distributed 65% over the Aave Ecosystem and 35% to the chain link -ecosystem. This reduced reimbursement schedule is valid for the first six months and will then be subject to new DAO votes. SVR is currently active in a first group of markets that are available on the Ethereum Network (including TBTC, LBTC, Aave and Link). An expansion of other assets is expected in the near future.
Payment abstraction and automation with chain link
SVR also represents the first chain link application that uses the payment abstraction system, a cross-chain payment solution that eliminates friction when paying services on the Chainlink network. The reimbursements attributed to Chainlink in the SVR context are automatically converted into link -tokens, with Chainlink -Services (automation, price feeds, CCIP) and a decentralized exchange platform. This mechanism helps to maintain a high level of service efficiency and at the same time stimulate chain link infrastructure providers.
Protagonists’ statements: Aave, Chainlink, Flashbots
Stani KulechovFounder of Aave Labs, emphasized that integration “Increases the income for the DAO, which enhances the Aave ecosystem”. SVR’s contribution is not only economic, but also influences the safety and technical integrity of the entire protocol. The implementation of SVR even defines the management of MEV in the Defi landscape, so that it is transformed from a costs to a profit for the protocols themselves.
Chainlink SVR is based on a decentralized infrastructure that has been established for more than five years, the same that supports the chain link price fairs that are used with more than $ 75 billion in TVL (total value locked) on their peak and supports transactions worth more than 20 billion dollars. The system also contributes to the technical resilience of the network and protects protocols against manipulation and inappropriate access.
The co-founder of BGD Labs, Ernesto Boadostated that optimizing liquidation algorithms while retaining protocol protection is a complex challenge, but the cooperation between an Aave and Chainlink again shows the ability to innovate responsible within the technical boundaries of Defi.
Shea ketsdever, product leader di flashbots, added that “More efficient MEV markets help create sustainable economies for borrowing protocols and Defi infrastructure”. The participation of flashbots with its own MEV-SHARE system is an integral part of this virtuous redistribution of value generated on the blockchain.
According to Johann EidChief Business Officer of Chainlink Labs, the partnership with Aave represents an exemplary case of how innovation in the cryptocurrency sector can translate into concrete and profitable tools for the entire ecosystem. The integration of SVR, emphasized EID, indicates a new standard for MEV recovery, which makes safe, efficient and verifiable reinvestment possible within Defi applications and support for Oracle infrastructure.
Future updates for Chainlink SVR
Looking ahead, Chainlink has planned new updates for SVR, including a higher level of decentralization, improvements in gas efficiency and additional cross-chain functionalities. These future developments promise to expand the effectiveness of the mechanism, even more complex Defi scenarios or connected to each other about different block chains.
Conclusion: a new model for the durability of Defi
In summary, The integration of Kettinglink SVR in the Aave protocol Brings tangible benefits for the economic and technical sustainability of Defi and offers an innovative model for the management and redistribution of OEV. For both industrial operators and board participants, this step is a concrete example of how cooperation between leading entities can reduce systemic losses and increase the value to the ecosystem.
For further technical details or to initiate the integration of SVR in other protocols, developers can refer to the official announcement and dedicated research publications.
