Aave is considering integrating with Chainlink to return MEV fees to users

2024-12-24 08:27:11

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ChainCatcher message, according to a proposal in the Aave governance forum, Aave is considering integrating a new Chainlink oracle aimed at redistributing profits from front-running trades back to users of DeFi protocols.

On December 23, decentralized oracle provider Chainlink released Smart Value Recovery (SVR), an oracle service specifically designed to extract profits from Maximum Extractable Value (MEV) for the benefit of DeFi protocols. On the same day, Aave proposed to integrate SVR, "to reclaim MEV from Aave liquidations and return it to the Aave ecosystem."

Aave stated that Chainlink's SVR is a service that sells "repurchase rights" and liquidation profits of Chainlink price feedback oracles through MEV-Share auctions. Aave estimates that SVR can capture about 40% of MEV profits, which can be redistributed to Aave DAO for the benefit of users.

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