Aave Proposes Integration of Chainlink’s SVR to Redistribute MEV Profits to Users

In a recent development highlighted on December 24th by COINOTAG News, Aave is contemplating the integration of a novel Chainlink oracle designed to facilitate the redistribution of front-run transaction profits to its users. On December 23rd, Chainlink unveiled the Service Agreement for MEV (SVR), a groundbreaking oracle service aimed at effectively capturing profits derived from Miner Extractable Value (MEV) for the enhancement of DeFi protocols. This initiative aligns with Aave’s objective to reclaim MEV profits from liquidation processes and reinvest them within the Aave ecosystem.

Aave’s proposal outlines that Chainlink’s SVR provides the option to repurchase Chainlink Price Feed oracles via MEV-Share auctions and profits from liquidations. Notably, Aave projects that the SVR could recapture approximately 40% of MEV profits, potentially enabling significant redistribution to the Aave DAO, benefiting its user base. This strategic move underscores Aave’s commitment to enhancing user returns and fostering a sustainable ecosystem within the DeFi landscape.