Aave Integrates Chainlink Smart Value Recapture (SVR) on Ethereum Mainnet

Aave has integrated Chainlink Smart Value Recapture (SVR) on Ethereum Mainnet, a pivotal step toward reclaiming millions in oracle-related Maximal

Aave has integrated Chainlink Smart Value Recapture (SVR) on Ethereum Mainnet following an almost unanimous vote by the Aave DAO to approve the partnership and a sustainable revenue-sharing model between the two partners.

The integration will see Aave use Chainlink exclusively for SVR for a period of 3 months, during which time Chainlink will also be prioritizing the Aave ecosystem.

The partnership also includes a revenue-sharing model, with Aave receiving a 70% share of the SVR revenue and Chainlink receiving a 30% share.

The partnership will also help to mitigate risks such as frontrunning and data manipulation, both of which are critical for a sustainable and robust DeFi ecosystem.

A major step towards reclaiming millions in oracle-related Maximal Extractable Value (MEV) previously lost to blockchain networks, Aave has integrated Chainlink Smart Value Recapture (SVR) on Ethereum Mainnet.

The integration was approved via an An Aave DAO governance vote, and a sustainable revenue-sharing model is being introduced between the two partners.

The partnership will also see Aave use Chainlink exclusively for SVR for a period of 3 months, during which time Chainlink will also be prioritizing the Aave ecosystem.

The partnership begins with an initial set of markets and will expand over time to include more markets and use cases. The two partners will also be working together to develop new and innovative ways to use SVR to benefit the entire DeFi ecosystem.

The partnership is a pivotal moment in the evolution of DeFi. By working together, Aave and Chainlink can help to create a more efficient, transparent, and scalable financial system for the digital age.

Aave and Chainlink have had a long-standing partnership that has secured over $75 billion in DeFi Total Value Locked (TVL) and facilitated over $20 trillion in transactions. Moreover, SVR was co-developed by the Aave Chan Initiative, BGD Labs, and FlashBots, emphasizing security and efficiency.

The partnership will see A revenue-sharing model, with Aave receiving a 70% share of the SVR revenue and Chainlink receiving a 30% share. This split was determined through cooperative discussion and voting within the Aave DAO, aiming to ensure a balance between providing a substantial incentive for Chainlink and enabling the Aave DAO to retain a greater portion of the partnership's benefits.

The integration of SVR marks a significant milestone in the development of decentralized finance (DeFi). It is also a testament to the power of collaboration and innovation.

The partnership is expected to benefit both partners, as well as the entire DeFi ecosystem. It will help to increase the efficiency and scalability of DeFi protocols, and it will also make DeFi more accessible to a wider range of users.

However, despite the promising initiative, there are concerns that require addressing.

The dependency on flashbots might limit participation and create a centralized point of control, which could be exploited or fail, rendering the system useless.

The integration also has high gas costs for optimal functionality, which might pose a barrier to participation, especially for smaller market makers.

Finally, the partnership is heavily reliant on governance, which might lead to delays, biases, and suboptimal decision-making as it pertains to the selection of optimal parameters and the addition or removal of markets.