Aave mulls Chainlink integration to return MEV fees to users
Aave is considering the integration of a new Chainlink oracle service called Smart Value Recapture (SVR), which is designed to redirect profits generated from Maximum Extractable Value (MEV) back to its users. This initiative aims to recapture approximately 40% of MEV profits, particularly from Aave liquidations. Chainlink's SVR helps capture MEV profits that block builders gain by reordering transactions, which may negatively impact users. Currently, Aave allows users to borrow cryptocurrency by collateralizing other crypto assets. If the value of these assets declines too significantly, they can be liquidated. Users sometimes engage in private orders, sending transactions directly to validators in a 'dark pool' to avoid MEV-related losses, a topic discussed in a recent Blocknative report.
Source 🔗