In December, Chainlink introduced Smart Value Recapture (SVR), a novel solution for recapturing non-toxic Maximal Extractable Value (MEV). With SVR’s Dual Aggregator architecture, DeFi applications that use Chainlink Price Feeds can access the benefits of recaptured oracle-related MEV from liquidations with minimal code changes and without introducing new security risks.
An initial version of SVR was built in collaboration with Aave DAO contributors to be integrated into Aave v3, pending governance approval. Based on real-world testing, Chainlink expects SVR to reliably recapture and return approximately 40% of non-toxic liquidation MEV to serve as a revenue stream for DeFi protocols and support the Chainlink Network’s long-term sustainability.
SVR is intended to be among the first services connected to Chainlink’s Payment Abstraction system designed to reduce billing and payment friction for users in the Chainlink ecosystem. Now live on testnet, SVR is slated to launch on Ethereum mainnet with additional features such as increased decentralization, a DON-based auction system, enhanced gas efficiency, and cross-chain capabilities.
Chainlink also made waves in gaming when Cross-Chain Interoperability Protocol (CCIP) went live on leading web3 gaming ecosystem and EVM blockchain, Ronin, opening the network’s bridge lanes to Ethereum and Base – the leading Ethereum layer-2 by TVL serving millions of Coinbase users – while laying the foundation for new lanes to more chains in the future.
Chainlink continues to accelerate tokenized real-world asset and stablecoin adoption. In December, Coinbase announced its compliant institutional-grade digital assets platform, Project Diamond, is adopting the Chainlink standard to support the full life cycle of tokenized assets.
Powered by Coinbase’s tech stack on Base, which natively integrated Chainlink’s full suite of web3 services, Project Diamond will leverage CCIP and Functions to enrich tokenized assets with high-quality real-world data as they securely move cross-chain.
Chainlink Scale member Hedera also deepened its Chainlink integrations with Data Feeds and Proof of Reserve. Elaine Song, VP of Strategy at the HBAR Foundation, underscored the fundamental role Chainlink’s time-tested oracle infrastructure plays in taking tokenization to the next level.
“By making the Chainlink standard available to our developer ecosystem, we can enable increased access to high-quality, tamper-proof data backed by decentralized infrastructure, which is mission-critical for building secure DeFi applications and scalable tokenized assets,” she said.