On Monday, Chainlink announced via a blog post that it has launched mart Value Recapture (SVR), a Chainlink-powered MEV recapture solution for DeFi. SVR is a novel oracle solution designed to enable DeFi applications to recapture the non-toxic Maximal Extractable Value (MEV) derived from their use of Chainlink Price Feeds.
The SVR-enabled Price Feeds leverages Flashbots MEV-Share and a novel onchain “Dual Aggregator” contract architecture to provide efficiency and enhanced fallback security. Chainlink SVR is currently live on testnet and will soon launch on the Ethereum mainnet. A future, fully custom implementation will introduce further improvements, including increased decentralization, a DON-based auction system, enhanced gas efficiency, and cross-chain capabilities.
The value recaptured by SVR provides DeFi protocols with a new revenue stream. It can be used to promote the long-term economic sustainability of Chainlink oracles, ultimately ensuring DeFi protocols maintain access to highly secure and reliable oracles.
Chainlink Network (LINK) aims to provide tamper-proof data inputs and outputs for smart contracts on any blockchain. LINK is up 6% over the past 24 hours, trading at $24.19 at press time.