Recently at @BRRRDAOxyz, we dropped a comprehensive OEV analysis, comparing @Chainlink SVR with other existing solutions.
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Everyone's debating revenue splits, but I don't want to talk about whether 60% beats 90%. I want to talk about why the "best" technical solution might lose anyway.
Thoughts on infrastructure wars and what the OEV competition reveals:
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Everyone sees: "Oval gives 90%, SVR only 60%, obvious choice"
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I see: Distribution beats optimization every time.
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Look at the data:
• Chainlink SVR: 60% split, Ethereum-only, 5-block theoretical max
• Oval: 90% split, but building from scratch
• Redstone: 50/50 split, "hostile participant" assumptions
• API3: 80% split, multi-chain complexity
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The revenue split paradox:
Aave chose 65% over 90%. Why?
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It's not about percentage - it's about infrastructure reliability. SVR leverages battle-tested Flashbots infrastructure while competitors build new auction mechanisms.
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Real performance? 95% of SVR auctions complete in 1-2 blocks. The theoretical 5-block maximum matters less than actual reliability.
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Plot twist: This isn't even about OEV extraction.
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SVR is Chainlink's first Payment Abstraction implementation. Converting fees to their native token. They're building a sustainable token economy.
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The quiet alpha: While everyone optimizes for revenue splits, Chainlink is optimizing for ecosystem lock-in.
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Second-order effects everyone's missing:
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• OEV revenue correlates with market stress, not protocol adoption
• Multi-chain support = more failure points, not more value
• Network effects > technical specifications
• Ecosystem integration > pure performance metrics
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The path of least resistance:
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Protocols choose 60% + reliability over 90% + risk because downtime costs more than the revenue difference.
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My take: Infrastructure wars aren't won by the best technology. They're won by the best distribution.
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When technical differences are marginal, trust and ecosystem positioning matter more than feature comparisons.
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Worth watching how many protocols follow Aave's lead vs chase higher splits.
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Thoughts?
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