Chainlink, the oracle network that brings global finance on-chain, has announced the launch of an oracle solution that will reportedly help decentralized finance protocols regain maximum extractable value.
Chainlink Smart Value Recapture is a MEV solution that DeFi applications can use to recapture the non-toxic, maximum extractable value from Chainlink Price Feeds.
According to an announcement from the Chainlink (LINK) team, the first version of its SVR is an effort contributed to by Aave (AAVE) DAO contributors BGD Labs and Flashbots, among others.
According to Chainlink, Chainlink SVR will initially focus on DeFi lending protocols.
This is one of the solutions designed to help protocols recover MEV from liquidations. Projects like Chainlink, Pyth Network, and API3 are at the forefront of providing solutions that enable efficiency for DeFi lending protocols. These initiatives are helping projects recover millions of dollars worth of non-toxic MEV.
SVR is built on Chainlink’s infrastructure and allows projects to reduce unnecessary dependencies on third parties. This also eliminates the need for intermediary smart contract integrations, while leveraging Flashbots for efficiency and security. This is the functionality of Flashbots’ MEV share and contract architecture, called “Dual Aggregator.”
“Based on real-world testing, we believe Chainlink SVR can expect a realistic value recovery rate of around 40% (i.e., for every $100 that would have been lost through liquidation MEV, $40 was recovered).”
Chainlink team in the blog announcement
Governance is also noteworthy…
