KyberSwap launches FairFlow, allowing LPs to recoup arbitrage profits

According to Foresight News, KyberSwap announced that it will launch its new LP reward mechanism FairFlow on August 6th. FairFlow is a Swap Hook based on Uniswap V4, used to return arbitrage profits originally obtained by external MEV arbitrageurs to liquidity providers (LPs) without pledging LP tokens to obtain rewards. The core mechanism is the Equilibrium Gain (EG) sharing plan: the KyberSwap aggregator is connected to the FairFlow pool. When there is arbitrage space in a transaction, the FairFlow Hook captures the profits and proportionally returns 70% to the LP and 30% to the platform ecosystem. EG shares are distributed weekly in dual currency format, and LP tokens can be used simultaneously for other DeFi protocols to earn additional profits. According to official experimental data, the APR of the FairFlow pool is higher than that of traditional pools, such as the ETH-cbBTC trading pair on the Base network, with an annualized return rate of 21% for the FairFlow pool within 189 hours and 16% for the standard pool. FairFlow smart contracts have been audited by Omniscia and there are plans to support more similar protocols in the future.