Chainlink SVR Recaptures $200K+ in Liquidation MEV, Pioneering DeFi Revenue and Sustainability
In just the past day, Chainlink's Smart Value Capture (SVR) oracle solution has enabled DeFi platforms—like Aave—to recapture over $200,000 in liquidation MEV (Maximal Extractable Value), with a single transaction reclaiming $100,000. SVR addresses “Oracle Extractable Value” (OEV), a revenue opportunity that previously escaped protocols and oracles, instead going to third-party searchers and block builders.
How SVR Works?
SVR augments standard Chainlink Price Feeds with a dual aggregator architecture, conducting private auctions for liquidation opportunities. Instead of MEV being taken by external actors, the value—generated when liquidations occur due to undercollateralized loans—can now be split between the DeFi protocol and the Chainlink Network, creating new, protocol-native revenue streams.
Aave Integration:
As an early adopter, Aave integrates SVR to reclaim liquidation-related MEV. Real-world tests show SVR can recapture roughly 40% of non-toxic liquidation MEV, returning it to protocol treasuries and oracle infrastructure providers to fund ongoing operations, security, and network upgrades.
Economic Sustainability:
The value captured through SVR is split between DeFi protocols (like Aave) and Chainlink, supporting the economic sustainability of oracle infrastructure and strengthening the foundation for Web3’s long-term growth. Initially, Aave receives 65% of captured value, with Chainlink allocated 35%, which is then converted into LINK tokens for network service providers.
SVR sets a new standard in recapturing value for protocols—transforming previously lost revenue into an engine for network sustainability and innovation in decentralized finance.
