According to ChainCatcher news, based on a proposal in the Aave governance forum, Aave is considering integrating a new Chainlink oracle aimed at redistributing profits from front-running trades to users of DeFi protocols.
On December 23, decentralized oracle provider Chainlink launched Smart Value Recovery (SVR), an oracle service specifically designed to profit from Maximal Extractable Value (MEV) for the benefit of DeFi protocols. On the same day, Aave proposed to integrate SVR, 'to reclaim MEV from Aave liquidations and return it to the Aave ecosystem.'
Aave stated that Chainlink's SVR is a service that sells the 'buyback rights' and liquidation profits of Chainlink price feedback oracles through MEV-Share auctions. Aave estimates that SVR can capture about 40% of MEV profits, which can be redistributed to Aave DAO for the benefit of users.
