How DeFi Protocols Can Recapture MEV

Table of Contents
Chainlink SVR Analysis: How DeFi Protocols Can Obtain Efficient, Risk-Adjusted Recapture of Liquidation MEV
Oracle Extractable Value (OEV) Calculation
Adjusted OEV
Oracle Delay Probability
Value at Risk (VaR) Thresholds
Per-Liquidation Bad Debt Calculation
Minimizing Risk Exposure: Equilibrium Liquidation Bonus Conditions
Thinking in Terms of Loan-to-Value (LTV) Ratios
Conclusion