Aave, the largest DeFi lending protocol with over $40 billion in net deposits, has voted near-unanimously to expand Chainlink's Smart Value Recapture (SVR) technology to Arbitrum and Base — two of the most active Ethereum Layer 2 networks.

What is Chainlink SVR?

SVR is an oracle extension that allows DeFi protocols to recapture "non-toxic" liquidation MEV — value that would otherwise flow to external bots and searchers. Built alongside BGD Labs and Flashbots, it redirects the value generated by liquidation events back to the protocol and its oracle infrastructure.

Since Aave first deployed SVR on Ethereum roughly a year ago, the system has recaptured $16.7M+ in oracle-extractable value, split approximately $11M to Aave and $6M to Chainlink. Over 96 independent searchers currently participate in SVR auctions, keeping competition healthy.

Expanding to L2s

The near-unanimous DAO vote extends SVR to Arbitrum and Base — both chains where Aave maintains significant liquidity. The expansion is expected to generate additional DAO revenue without changes to Aave's core risk parameters.

The move signals a broader shift in DeFi thinking: instead of treating MEV as an unavoidable cost, protocols are increasingly building infrastructure to capture and redistribute it. Aave's track record on Ethereum gave the DAO confidence to scale the model across chains.

Chainlink's official announcement noted the milestone as a step toward "sustainable economics for the DeFi economy" — a claim now backed by eight-figure revenue data rather than projections.