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 stake crypto assets to borrow other cryptocurrencies. If the mortgaged assets depreciate too much, they will be liquidated. In liquidation, the third party repays the debt and receives the collateral and liquidation bonus. However, this results in block builders receiving significant profits via MEV, while Aave users receive relatively little. The SVR service sells the right to run oracles and make profits through auctions. It is expected to capture 40% of MEV profits and redirect these profits to Aave users, thereby optimizing profit distribution.
