KyberSwap Introduces FairFlow, MEV Revenue Selectively Returned to LP

BlockBeats News, August 5th, KyberSwap announced that it will launch a new LP reward mechanism called FairFlow on August 6th. FairFlow is a Swap Hook based on Uniswap V4, designed to return arbitrage profits that were originally captured by external MEV arbitrageurs back to the liquidity providers (LPs). LPs can receive rewards without staking LP tokens.

The core mechanism is the Equilibrium Gain (EG) sharing plan: KyberSwap's aggregator integrates with the FairFlow pool. When a trade presents an arbitrage opportunity, the FairFlow Hook captures a portion of the profit and returns 70% to LPs proportionally, with 30% allocated to the platform's ecosystem. EG rewards are distributed weekly in a dual token format, and LP tokens can be used in other DeFi protocols simultaneously to earn additional yield.

According to official experimental data, the FairFlow pool's APR is higher than that of traditional pools. For example, in the ETH-cbBTC pair on the Base network, within 189 hours, the FairFlow pool's annualized return rate is 21%, while the standard pool offers 16%. The FairFlow smart contract has been audited by Omniscia, and there are plans to support more similar protocols in the future.