🚀 Aave Evaluates Integration with Chainlink to Capture MEV
Aave is considering the integration of a new Chainlink oracle to redirect profits from front-running transactions to its users, according to a proposal in its governance forum.
The proposal, launched on December 23, aims to use Chainlink's Smart Value Recapture (SVR) service to capture the maximum extractable value (MEV) during liquidations. This would allow Aave to recover and reinvest these profits into its ecosystem, benefiting its users.
Reasons and Consequences:
- Cost Mitigation: The integration would help reduce costs associated with harmful MEV, protecting Aave users.
- Community Benefits: The captured profits could be reinvested in Aave's DAO, strengthening the ecosystem and benefiting its members.
- Innovation in DeFi: This move could set a precedent in the DeFi industry, encouraging other platforms to adopt similar solutions.
Aave's proposal reflects the growing need to protect users from MEV exploits and could mark a milestone in the evolution of DeFi protocols.
