atlas

📅 January 22 | DeFi
For years, millions of dollars have quietly “disappeared” from DeFi protocols. Not because of hacks, not because of bugs, but because of an invisible mechanic known as MEV. Bots faster than any human have turned liquidations into a private gold mine.

📖Blockchain infrastructure firm Chainlink announced this Thursday the acquisition of Atlas IP, a transaction ordering solution developed by the Fastlane research team. Although financial terms were not disclosed, Chainlink confirmed that it has brought on board the key team behind Atlas and that, from now on, the technology will work exclusively within its ecosystem, leaving behind its deployment with RedStone, a rival oracle provider.
The Atlas integration will be done directly into Chainlink SVR, the initiative that seeks to enable DeFi applications to recover value that is typically lost in settlement events following price updates from oracles. This phenomenon, known in these cases as Oracle Extractable Value, occurs when automated bots detect that a loan became undercollateralized just after a price update and execute trades in milliseconds to capture virtually guaranteed profits.
In decentralized lending protocols, any participant can liquidate an at-risk position. The problem is that those who arrive first are not usually users, but bots that pay more for priority on the network, take advantage of the collateral discount and sell at the market price. That margin, which historically went to actors outside the protocol, can now be redirected.
Atlas and Chainlink SVR change that dynamic by creating a private and fair auction system for those liquidation events. Instead of the fastest bot winning, bots compete by paying the protocol for the right to execute the trade immediately after the oracle update. In this way, both the bot and the protocol capture value, and money stops leaking out of the ecosystem.
The numbers already show the impact. Chainlink SVR has processed over $460 million in settlements and has recovered around $10 million in what it calls “non-toxic MEV” for leading protocols such as Aave and Compound. With the addition of Atlas, Chainlink hopes to accelerate the expansion of this technology to multiple networks and new ecosystems.

Topic Opinion:
This is one of the most strategic acquisitions Chainlink has made in years. Not because it adds a new visible feature, but because it attacks one of DeFi's biggest and least understood value leaks.
💬 Should all DeFi protocols implement systems against toxic MEV?

Leave your comment...
#Chainlink #MEV #defi #atlas #CryptoNews $LINK $AAVE