Chainlink Launches Value Recapture and Pricing Feeds
Chainlink has deployed new tools to help DeFi protocols enhance revenue and market analysis. Smart Value Recapture (SVR) Feeds enable protocols to reclaim Oracle Extractable Value (OEV), especially during liquidations. Additionally, new Liquidity-Weighted Bid-Ask (LWBA) pricing data gives protocols a more granular view of market depth and activity.
- Oracle Extractable Value (OEV) has resulted in significant value leakage from DeFi protocols; major platforms like Aave and Compound have each lost over $100 million to MEV extractors. - SVR works by running an auction for the right to backrun liquidations, with the recaptured revenue being split between the DeFi protocol (58.5%), the Chainlink network (31.5%), and block builders (10%). - The initial version of SVR was developed in collaboration with BGD Labs, Flashbots, and contributors to the Aave DAO. - Since its launch, SVR has processed over $460 million in liquidations and recaptured more than $10 million in value for early adopters like Aave, Compound, and Venus. - Through the acquisition of Atlas, Chainlink is expanding SVR's capabilities beyond Ethereum to other chains, including Base and Arbitrum. - Liquidity-Weighted Bid-Ask (LWBA) prices provide a more accurate reflection of market conditions than traditional mid-prices by considering the volume of assets available at each price point in the order book. - LWBA prices are delivered through Chainlink Data Streams, a "pull-based" system that allows dApps to request low-latency data on-demand, as opposed to traditional "push-based" oracles that update at fixed intervals.
