DeFi protocols are reclaiming $2.16 billion in liquidatable positions from Maximal Extractable Value (MEV) bots, addressing inefficiencies in the system. Ethereum's lending markets, including Compound and Sky, have been significant targets, with $1.23 billion and $801 million in liquidatable positions, respectively. Protocols are now redesigning mechanisms to retain value internally through auctions and controlled liquidations, enhancing sustainability and resilience.
Aave is leading this shift by expanding its System Value Reclamation (SVR) model, which has already recaptured over $16.7 million in MEV on Ethereum. The model is now being extended to Arbitrum and Base, transforming liquidation events into controlled revenue channels. Aave's total value locked (TVL) stands at $23.87 billion, with a 30-day revenue of $6.24 million, indicating a $76 million annual run rate. However, the sustainability of these gains depends on continued market volatility and lending demand.
DeFi Protocols Reclaim $2.16 Billion from MEV Bots in Liquidation Shift
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