According to recent announcements from Chainlink, the highly anticipated Payment Abstraction feature has been successfully launched on the mainnet as of April 1st. This groundbreaking cross-chain payment system is designed to enhance user experience by significantly reducing payment friction within the Chainlink ecosystem. With Payment Abstraction, users can now utilize alternative assets such as Gas tokens and stablecoins to pay for various services, all of which are seamlessly converted into LINK tokens via the Chainlink Automation feature along with Price Feeds and CCIP.
This innovative solution is currently operational and precisely targets the conversion of network fees accruing from Chainlink’s unique Smart Value Recapture (SVR) initiative. SVR serves as an oracle-based mechanism that enables DeFi applications to harness the maximally extractable value (MEV) derived from leveraging Chainlink’s data oracles. The accumulated MEV fees will be shared between DeFi projects adopting this technology and the broader Chainlink network, creating a mutually beneficial ecosystem. Notably, Aave is the first platform to integrate with this solution, benefiting from a six-month discount plan that allocates 65% of the fees to its community and 35% to Chainlink.