Aave plans to redirect MEV profits to benefit its users. MoonPay is reportedly negotiating a $150 million acquisition of Helio Pay to enhance its crypto e-commerce offerings, while Crypto.com launched a U.S. institutional custody service, which is a big step in its North American expansion. Aave Proposes Solution to Address MEV Decentralized finance (DeFi) protocol Aave is considering the integration of Chainlink's newly released Smart Value Recapture (SVR) oracle to address the issue of maximum extractable value (MEV) in its ecosystem. The proposal was introduced in Aave’s governance forum, and its main goal is to redirect profits from MEV-related transaction backrunning to benefit the protocol’s users. This is part of Aave’s efforts to optimize its operations and reduce the negative impact of MEV. On Dec. 23, Chainlink launched the SVR oracle service that is designed to capture MEV profits and return them back to DeFi protocols. On the same day, Aave proposed leveraging SVR to reclaim MEV from liquidation events and redirect the captured value to the Aave DAO for the benefit of its user base. MEV happens when blockbuilders reorder transactions to maximize profits before finalizing blocks on the blockchain. This often leads to large profits for blockbuilders but can sometimes come at the expense of users. Proposed implementation of Chainlink SVR with Aave v3 on Ethereum (Source: Chainlink ) Aave’s platform allows users to borrow cryptocurrencies by depositing collateral. If the value of the collateral drops too much, it is liquidated. Liquidations involve third-party liquidators repaying a portion of the debt and receiving the equivalent value in collateral along with a liquidation bonus. While this mechanism worked effectively in the past, the proposal pointed out that it created a clear opportunity for MEV that allows builders to extract profits while contributing minimally to the process. This dynamic has led to disproportionate benefits for blockbuilders compared to protocol users. Chainlink’s SVR offers a potential solution by selling, through an MEV-Share auction, the rights to back-run Chainlink’s price-feed oracle and profit from liquidations. Aave estimates that the SVR could capture around 40% of MEV profits, which could then be redistributed in the ecosystem to enhance user benefits. Across the Ethereum network, protocols and users are actively looking for ways to mitigate the costs associated with harmful MEV. One of the main strategies involves using private transactions, where orders are sent directly to validators rather than being included in the public transaction pool. These are known as “dark pools,” and they have gained a lot of popularity as users prioritize MEV protection. According to a report by Blocknative, private transactions now dominate Ethereum’s order flow. Average block space private vs public (Source: Blocknative ) MoonPay Eyes $150M Acquisition of Helio Pay Aave is not the only crypto company planning major moves. MoonPay, a leading crypto payments firm, is reportedly in discussions to acquire Helio Pay, a crypto e-commerce platform, in a deal valued at close to $150 million. If finalized, this will be MoonPay's largest acquisition to date, according to a report shared by FOX reporter Eleanor Terrett . MoonPay is often referred to as the “PayPal for crypto,” and offers a robust crypto payments infrastructure. This acquisition could expand its capabilities in the e-commerce sector even more. Helio Pay provides a self-service platform very similar to Coinbase Commerce, allowing over 6,000 e-commerce merchants and content creators to accept payments in Bitcoin, Ethereum, stablecoins like USD Coin, and hundreds of other cryptocurrencies. One of its standout features is its integration with Solana Pay on Shopify, which caters to more than 138 million monthly users. The acquisition will allow MoonPay to enhance its merchant service offerings while still building on its existing user base of approximately 20 million users across over 160 countries. MoonPay’s services allow users to buy and sell digital assets using debit cards, credit cards, and mobile payment platforms like Apple Pay and Google Pay. The firm recently introduced MoonPay Balance , which is a fiat-to-crypto on-ramp infrastructure that allows users to store and spend fiat balances while interacting more seamlessly with decentralized finance protocols via non-custodial wallets like MetaMask and Phantom. This solution is available in 27 countries, primarily in Europe, though key markets like the United States and Germany were excluded. In July, MoonPay also integrated fiat PayPal on-ramps for customers in the European Union and the United Kingdom, after a similar rollout in the United States earlier. The company was founded in 2018 by Victor Faramond and Ivan Soto-Wright. Crypto.com Launches U.S. Custody Service Meanwhile, Crypto.com launched an institutional crypto custody service in the United States. The move was announced on Dec. 23, and the new service operates under the Crypto.com Custody Trust Company, a chartered trust eligible to hold digital assets for U.S. institutions and high-net-worth individuals. Over the coming weeks, Crypto.com plans to migrate digital assets held by its U.S. and Canadian customers to this custody trust. A crypto custody service securely stores and manages digital assets like cryptocurrencies on behalf of individuals or institutions. These services usually include advanced security measures, regulatory compliance, and insurance coverage to protect assets against theft or loss, making them essential for institutional investors and high-net-worth individuals when it comes to managing their crypto holdings. The move is part of Crypto.com’s strategic focus on the U.S. and Canada, which the company considers key markets for the crypto industry. CEO Kris Marszalek stated that this step proves the company’s confidence in the North American market and aligns with its roadmap to strengthen its presence in these important crypto markets. Crypto.com’s U.S. expansion plans gained serious momentum in December when Marszalek met with President-elect Donald Trump at Mar-a-Lago to discuss crypto policies. On the same day, the exchange dropped its lawsuit against the U.S. Securities and Exchange Commission in an effort to collaborate with the incoming administration on a regulatory framework for the industry. Trump has been very vocal about his plans for the U.S. to become a global leader in cryptocurrency and is assembling pro-industry leadership for key regulatory agencies as he prepares to take office in January. Headquartered in Singapore, Crypto.com initially launched in the U.S. in 2022, mainly focusing on institutional investors. After suspending exchange services in the country in 2023, the company since reversed course by acquiring Watchdog Capital, an SEC-registered broker-dealer, in October to bolster its U.S. operations. The launch of Crypto.com’s custody service happened amid growing competition in the regulated digital asset custody space in the U.S. BitGo also recently introduced a regulated platform for managing native tokens in September, and Fireblocks received regulatory approval from New York’s financial regulator in August to offer custody services for U.S. clients. Some of the other competitive players in the space include Coinbase Custody Trust, Fidelity Digital Asset Services, and Anchorage Digital NY.
