During EthCC, the largest annual European Ethereum event, Chainlink Labs’ Chief Business Officer, Johann Eid, sat down with Andy from The Rollup to discuss the next phase of DeFi innovation: tokenizing the entire world onchain.
“It’s not about finding use cases anymore,” Eid said.
“We’ve found the use cases; we’ve proven the space can work. Now we’re literally building the sustainable foundation to ensure what we’re working on will last for the next 10, 20, 30 years.”
Over the weekend, leading DeFi protocol Aave officially adopted Chainlink Smart Value Recapture (SVR) on Arbitrum and Base after a near-unanimous vote to increase DAO revenue. Since integrating SVR on Ethereum last year, Aave has already recaptured nearly $17 million in non-toxic oracle-related Maximal Extractable Value (MEV) from liquidations.
Eid expects SVR-recaptured MEV will skyrocket as DeFi lending protocols like Aave, which currently hold approximately $50 billion in TVL, grow tenfold in the coming years.
“That’s just going to go higher and higher and it’s going to benefit the protocol, the users of the protocol, and the Chainlink network.”
As the industry-leading oracle platform, Chainlink has enabled over $28 trillion in transaction value and powers the vast majority of DeFi. More than 2,000 Chainlink Price Feeds hold over 67% of the total oracle market, securing over 83% of the value on Ethereum and nearly 100% of the value on Base.
“We’ve been at the root of this transition and we are going to be at the root of the next transition, which is the tokenization of the whole world onchain,” Eid said.
Chainlink provides the secure and reliable data, interoperability, compliance, and privacy traditional finance requires to tokenize real-world assets. Following collaborations with the DTCC as well as Fidelity International and Sygnum, Chainlink has emerged as the preferred way to deliver key NAV and reserve data for tokenized funds onchain.
Recently, Amundi, Europe’s largest asset manager with €2.3 trillion in assets under management, and Spiko, a leading European fund tokenization platform, launched the Spiko Amundi Overnight Swap Fund (SAFO), powered by Chainlink. Eid highlighted the integration as a big milestone for European adoption.
“Europe wasn’t moving as fast as other regions, but I can see them catching up really quickly now.”
He believes the future of onchain finance, conceived as a better alternative to traditional finance, is already set in motion. According to Eid, each global crisis only accelerates this transformation.
“The system is at the tipping point,” he said.
“That is the paradox of our industry – when the world gets very dark, our industry shines the most.”
Watch the full conversation.