PANews reported on December 24 that according to Cointelegraph, according to a proposal from the Aave governance forum, the Aave platform is considering integrating Chainlink's Smart Value Recovery (SVR) service to solve the problem of uneven profit distribution caused by frontrunning transactions. SVR is an oracle service designed to capture maximum extractable value (MEV) profits for the benefit of DeFi protocols. On December 23, Chainlink released the SVR service, and Aave proposed to integrate the service on the same day, aiming to recover MEV from Aave liquidations and return them to the Aave ecosystem.
On the Aave platform, users can pledge crypto assets to borrow other cryptocurrencies. If the pledged assets depreciate too much, they will be liquidated. At liquidation, a third party will repay the debt and receive the collateral and liquidation bonus. However, this has led to block builders making significant profits through MEV, while Aave users have received relatively little. The SVR service sells the right to run the oracle first and make a profit through auctions, and is expected to capture 40% of MEV profits and redirect these profits to Aave users, thereby optimizing profit distribution.
