Aave (AAVE) Ecosystem Integrates Chainlink's Smart Value Recapture (SVR) Technology to Capture Millions of Dollars in MEV

The Aave (AAVE) ecosystem might be in for a wild ride now that it has officially integrated Chainlink's Smart Value Recapture (SVR) technology.

Aave (AAVE) ecosystem might be in for a wild ride now that it has officially integrated Chainlink’s Smart Value Recapture (SVR) technology.

Officially approved in March 2025 by an on-chain community vote, this collaboration targets millions of dollars in previously unclaimed Maximal Extractable Value (MEV) associated with oracle-based liquidations.

.@aave has officially integrated Chainlink SVR in a near-unanimous vote to recapture liquidation MEV, starting with an initial set of markets.As the largest DeFi lending protocol, Aave is establishing a new standard in cryptoeconomics with SVR.https://t.co/beN712BymB ⬇️pic.twitter.com/kF9EtdcyRV

— Chainlink Labs (@ChainlinkLabs) April 24, 2025

The integration was backed by Flashbots, which will take care of the MEV-share model, and BGD Labs, which handled the technical integration.

Related: Stablecoin Surge Threatens Traditional Banking, Senator Gillibrand Warns Against FDIC Protection

Not a Bad Deal

According to the press release, early models indicate that about 40% of MEV could be recaptured, generating a fresh revenue stream split 65%-35% between the Aave and Chainlink ecosystems.

Johann Eid, Chief Business Officer at Chainlink Labs, described SVR as “a new standard in DeFi economics”:

The Issue With MEV

Maximal Extractable Value (MEV) is quite a controversial topic in crypto, but in essence, it refers to the additional profit blockchain validators and block builders can earn by strategically ordering transactions within a block.

A subset of this, often called Oracle Extractable Value (OEV), emerges during liquidation events on DeFi platforms. Historically, blockchain operators benefited from these profits rather than the protocols themselves.

To give an idea, Aave manages over US$19B (AU$30B) in assets, while Chainlink’s infrastructure secures more than US$20T (AU$31.7T) in transactions. But neither ecosystem has received meaningful compensation from the liquidation events powered by their own technology.

Therefore, the amount of money taken from MEV hurts the revenue potential for further protocol development. It also leads to security issues like frontrunning or sandwich attacks, which are well-known issues in DeFi trading.