Aave (AAVE) is a leading decentralized finance (DeFi) platform that has experienced a very strong rally in its price, jumping 18.05% in one day to $379.
Decentralized finance (DeFi) platform Aave (AAVE) has seen a strong rally in its price, jumping 18.05% in one day to $379. This comes after a new proposal for integrating a new cutting-edge oracle service from Chainlink that could help Aave’s users and the broader DeFi ecosystem.
The potential inclusion of Chainlink’s recently launched Smart Value Recapture (SVR) new oracle was recently discussed in the Aave governance forum. It is an oracle designed to capture profits from a process called Maximum Extractable Value (MEV).
It involves reorganization and front-running of transactions, and these profits have often gone to miners and traders in the past. But SVR will redirect that profit to benefit the DeFi protocols, such as Aave, and the users.
This news has led to the AAVE token of Aave increasing in price and trading volume, with its market cap now standing at $5.7 billion. The 24-hour trading volume for Aave has also increased to $1.45 billion, a rise of nearly 65%.
On December 23, Chainlink launched SVR, a product designed to capture transaction backrunning profits, mainly in the context of Aave liquidations. Aave liquidation occurs when the amount of collateral deposited by a borrower falls below a certain level and is subsequently sold to settle the loan. Those profits have long been taken by arbitrageurs and traders.
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