Chainlink has successfully acquired Atlas Protocol, a strategic move aimed at amplifying its Smart Value Recapture (SVR) solution across five distinct blockchain networks, including Arbitrum, Base, and BNB Chain. This acquisition signifies a pivotal enhancement in the capabilities of Chainlink”s SVR, which has already demonstrated its effectiveness by processing over $460 million in liquidations and recapturing more than $10 million in Oracle Extractable Value (OEV).
The integration of Atlas, developed by FastLane Labs, not only brings valuable intellectual property but also essential personnel under the umbrella of Chainlink. As a result, Atlas will now provide exclusive support for Chainlink”s SVR solution, facilitating value recovery for decentralized finance (DeFi) protocols. This expansion enhances Chainlink”s dominance in the OEV recapture market and positions it as a leading player.
Atlas has established a solid reputation by powering order flow auctions for notable protocols such as Compound and Venus, particularly focusing on liquidation events within DeFi lending platforms. Chainlink”s robust security track record, which encompasses safeguarding over $27 trillion in transactions and securing 70% of the DeFi ecosystem, was a key factor in FastLane”s decision to partner with them.
The SVR system is designed to target non-toxic Miner Extractable Value (MEV) derived from the utilization of Chainlink Price Feeds. By recapturing value through backrunning liquidations in overcollateralized lending protocols, SVR differentiates itself from harmful MEV practices that facilitate frontrunning or sandwich attacks. This approach allows protocols to generate additional revenue without compromising the user experience.
Existing users of Atlas will benefit from streamlined support during their transition to Chainlink SVR, with comprehensive developer documentation available to ease the migration process. The deployment on the Ethereum mainnet will continue utilizing Flashbots MEV-Share infrastructure, while Atlas will broaden SVR deployment across new blockchain ecosystems beyond Ethereum.
Since its launch, Chainlink SVR has processed substantial liquidations and recaptured noteworthy OEV for integrated protocols, including leading DeFi platforms like Aave and Compound. The revenue generated from SVR offers a sustainable income stream for both the protocols involved and the Chainlink network, creating a mutually beneficial ecosystem.
Johann Eid, Chief Business Officer at Chainlink Labs, expressed enthusiasm regarding the acquisition, stating, “I”m thrilled to welcome Atlas into the Chainlink standard.” He emphasized that the union of Atlas”s technology with SVR represents the most efficient value recapture system in DeFi to date. This integration is intended to accelerate SVR”s expansion into new ecosystems while increasing revenue opportunities for various DeFi protocols.
Alex Watts, CEO of FastLane, highlighted the partnership”s potential, noting, “Bringing Atlas together with Chainlink creates the most credible path for DeFi protocols to recapture value onchain at scale.” He underscored Chainlink”s leadership in the OEV market and articulated the advantages the alliance would bring to Atlas and its operations. FastLane will maintain its independent operations while serving as a strategic partner to support Atlas”s integration and protocol adoption.
