Quick Breakdown:
- Chainlink SVR has recaptured $1.1M in MEV and processed over $32M in liquidations on Ethereum.
- Aave integration covers ~75% of its Ethereum TVL, with MEV recapture rates averaging 80–90%.
- Recovered value is split between DeFi protocols and Chainlink, boosting network sustainability,
Chainlink announced that its Smart Value Recapture (SVR) system has surpassed $1.1 million in recaptured non-toxic liquidation MEV while processing more than $32 million in liquidations on Ethereum. The milestone signals growing adoption of SVR as decentralized finance protocols seek to redirect value that would otherwise flow to third-party extractors back into their own ecosystems.
Boosting DeFi Revenue Through Oracle MEV
SVR, now live on mainnet, is designed to capture Oracle Extractable Value (OEV), a subset of MEV that arises when price feed updates trigger liquidations on lending platforms. Traditionally, these profits have been absorbed by searchers and validators. With SVR, DeFi protocols such as Aave can reclaim this value directly.
Chainlink confirmed that the revenue split model directs the majority of recovered funds to participating protocols while a portion supports the sustainability of the Chainlink Network. In Aave’s case, the integration now covers around 75% of its total value locked (TVL) on Ethereum, representing nearly all of the protocol’s OEV-relevant activity.
Chainlink Smart Value Recapture (SVR) has officially recaptured over $1.1M in non-toxic liquidation MEV and processed over $32M in liquidations.
SVR is a novel oracle solution that enables DeFi protocols like @aave to recapture oracle-related MEV from liquidations that would… pic.twitter.com/N1UTl1wxhH
— Chainlink (@chainlink) August 26, 2025
Higher Capture Rates Strengthen Protocol Economics
According to Chainlink, the system is capturing more than 80% of eligible liquidation MEV on average, with certain transactions reaching above 90%. These gains provide Aave and other DeFi protocols with new revenue streams, improving long-term resilience while reducing reliance on external actors.
The initiative reflects collaboration between Chainlink Labs, BGD Labs, Flashbots, and the Aave DAO. By securing oracle-driven activity and recapturing previously lost value, Chainlink positions SVR as a key infrastructure upgrade for decentralized finance.
Chainlink noted that as SVR adoption expands, the framework could evolve into a cross-chain standard for MEV recapture, further embedding Chainlink at the center of DeFi’s capital efficiency.
Meanwhile, Chainlink has expanded its footprint through a new partnership with Plexos Institute and EDinheiro to launch blockchain-based social currencies in Brazil. The initiative will debut in Indiaroba, Sergipe, with the rollout of the “Aratu” currency, aimed at promoting financial inclusion for underserved communities.
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