Chainlink recently announced the introduction of a new feature called Smart Value Recapture (SVR) that aims to reduce unnecessary reliance on third parties and eliminate the need to integrate mediatory smart contracts. The platform collaborated with Flashbots, BGD Labs, and other contributors to the Aave DAO in developing this innovative solution. The SVR-enabled Price Feeds utilize Flashbots MEV-Share and a unique Dual Aggregator contract architecture to enhance fallback security and efficiency. While currently in the testnet phase, Chainlink plans to release the SVR on the Ethereum mainnet soon.
This new feature is designed to help decentralized lending protocols recapture MEV related to oracles from liquidations, thus minimizing third-party dependencies and ensuring a more seamless user experience. The integration of Chainlink SVR into the Aave community is undergoing governance approval, with the aim of enhancing economic viability and providing DeFi protocols with reliable and secure oracles. Chainlink envisions SVR evolving into a highly decentralized, configurable, cross-chain, and generalizable OEV solution in the future, with additional improvements planned to enhance decentralization, cross-chain capabilities, gas efficiency, and the introduction of a DAO-based auction system.
Chainlink’s focus on improving user experience by reducing third-party dependencies and streamlining the use of smart contracts highlights their commitment to delivering long-term economic viability, reliability, and security in the DeFi sector. The introduction of SVR is expected to contribute to the expansion and adoption of decentralized finance solutions across various platforms. By offering a solution that is decentralized, cross-chain, and configurable, Chainlink aims to provide a more sustainable and secure environment for DeFi projects to thrive. The platform’s emphasis on continuous improvement and innovation underscores their dedication to advancing the DeFi industry and meeting the evolving needs of users and developers.
