According to BlockBeats news on August 5th, KyberSwap announced the launch of a new LP reward mechanism, FairFlow, on August 6th. FairFlow is a Swap Hook based on Uniswap V4, designed to return arbitrage profits, which would otherwise be obtained by external MEV arbitrageurs, to liquidity providers (LPs), with rewards that do not require staking LP Tokens.
Its core mechanism is the Equilibrium Gain (EG) sharing plan: The KyberSwap aggregator connects to the FairFlow pool. When arbitrage opportunities occur during transactions, the FairFlow Hook captures that portion of the profit and returns 70% to LPs and allocates 30% to the platform ecosystem. EG sharing is distributed weekly in a dual-token format, and LP Tokens can also be used in other DeFi protocols to earn additional rewards.
According to official experimental data, the FairFlow pool's APR is higher than traditional pools. For instance, in the ETH-cbBTC trading pair on the Base network, the annualized yield of the FairFlow pool over 189 hours is 21%, while the standard pool is 16%. The FairFlow smart contract has been audited by Omniscia, and there are plans to support more similar protocols in the future.
