- Payment abstraction simplifies payments and automatically converts tokens into link.
- Chainlinks SVR records MEV and divides Premirn between Chainlink and Aave.
Chainlink hat sein Payment-Abstraction System im Ethereum-Mainnet introducedan important development to improve the network. The system enables the native tokens of the Chainlink ecosystem to be paid for for services with different tokens that are automatically converted into link. The new system rationalizes payments, becomes faster and therefore more efficient.
We’re excited to announce Chainlink Payment Abstraction is officially live on mainnet, enabling user fees to be converted into LINK.
Network fees generated from Chainlink SVR—including @ghost‘s usage of SVR—will now be converted to LINK.
— Chainlink (@chainlink) March 31, 2025
By integrating Chainlink Smart Value Recapture (SVR), the system also captures the valuable MEV (maximum extractable value), which is generated by defi platforms such as AAVE, whereby the value between chainlink and its partners is shared.
Rationalized payments and premium distribution
The Payment Abstraction makes interaction with Chainlink services easier. Before that, you had to manage several tokens for payments across different platforms. Now you can pay with assets such as stable coins and gas tokens that are automatically converted into link via uniswap.
Aave is that First platform, the SVR mit Payment Abstraction integrated. AAVE receives 65% of SVR fees and Chainlink 35%. As soon as the fees have moved in, they are converted into link and circulated within the Chainlink system. This lowers the operating costs and simplifies the distribution of the premiums for both AAVE and for Chainlink.
The system consolidates the premiums on Ethereum, which means that the need for several transactions via different blockchain networks is eliminated and the process becomes more efficient. This integration not only simplifies payments, but also the premium distribution model.
Effects on stakers and future link courses
With a view to the future, the Payment Abstraction for Link Stakers is important. SVR fees are currently supporting the node operators by paying them for their work when providing data feeds. However, as soon as the staking infrastructure is completely in operation, the costs to the Link Stakers, including the node operator and other community members, are paid. This will make the premium system more sustainable and could increase the demand for link because staking becomes a fixed system component.
#Chainlink $LINK is breaking out of a bullish flag, targeting $50! pic.twitter.com/ru8CCbJPCG
— Ali (@ali_charts) January 18, 2025
Sea CNF-Analyse the price of Chainlink is also a big deal. In a post from January on X Crypto, analyst Ali Martinez said that Link could experience a significant price increase. He pointed out a positive flag pattern in the Chainlink course chart, which usually means a considerable upward trend.
If link breaks out of its consolidation area, the course could increase by more than 100%. The price target of this pattern is around $ 50, which would bring Link near his ATH of $ 52.7 from May 2021.
When writing this article, the link course is $ 13.98, which means an increase of 5.69 % in the last 24 hours. It could be an early indicator of the dynamics caused by the introduction of the payment abstraction and further developments in the chainlink system.
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