Chainlink Introduces Smart Value Recapture for DeFi

Anna Martynova

Chainlink has announced the launch of a solution that it says will help decentralized finance protocols recapture their maximum extractable value. Chainlink Smart Value Recapture is a MEV solution that DeFi applications can plug into to recapture non-toxic maximal extractable value from Chainlink price feeds.

According to the Chainlink team, the initial version of SVR is work that has been contributed to by Aave DAO members BGD Labs and Flashbots, among others. According to Chainlink, Chainlink SVR’s initial focus is DeFi lending protocols. It’s one of the solutions looking to help protocols recapture MEV from liquidations. Projects like Chainlink, Pyth Network, and API3 are at the forefront of offering solutions that bring efficiency to DeFi lending protocols. These initiatives are helping projects recapture millions of dollars in non-toxic MEV.

SVR, built on the Chainlink infrastructure, works by allowing projects to cut out unnecessary third-party dependencies. It also eliminates the need for intermediate smart contract integrations by using Flashbots for efficiency and security. It is also worth noting that work is ongoing on a proposal to govern the integration of Chainlink SVR into Aave.

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