[TEMP CHECK] Aave <> Chainlink SVR v1 integration

Simple Summary

Proposal for the community to signal about activating a pilot program of SVR (Smart Value Recapture) oracles on Aave v3, a system created by Chainlink to recapture MEV from Aave liquidations and return it to the Aave ecosystem.

Context

As described in the associated post on the Aave governance forum, the liquidations engine of Aave v3 is a very robust mechanism used since Aave v1, but that with the appearance of meaningful MEV (Maximal Extractable Value) could be optimised.

This TEMP CHECK's objective is for the community to signal on the integration of Chainlink SVR (Smart Value Recapture), a fairly non-invasive system to "recapture" part of the MEV, this way optimising Aave liquidations.

Specification

All preliminary details can be found in the associated post on the Aave governance forum, but as a summary, the Chainlink SVR v1 integration with Aave will work the following way:

1. The off-chain Chainlink network (DON) produces prices following the same algorithm as currently.
2. When an update on-chain needs to be done, two things happen in parallel: 2.1. The price is submitted to the “standard” price feed currently used by Aave (which we will refer to as “SVR fallback” feed in this document too). 2.2. The same price is submitted to MEV-Share, for searchers to participate in the auction to back-run it.
3. Once the auction finishes (both with or without any winner), the price is submitted on-chain to the SVR feed.
4. If for any reason the price would not be submitted on-chain, the SVR feed automatically fallbacks to the SVR fallback feed after a delay, providing the same assurances as normally on Aave.

Aave <> Chainlink SVR integration

For all high-level aspects required to vote on this signalling TEMP CHECK, the associated forum post also contains an FAQ trying to describe the integration as much as possible, even if preliminarily.