In short: FairFlow lets LPs earn more👇
AMMs have always had an imbalance. Liquidity providers bring the capital, but when prices shift, the biggest winners are arbitrage bots. This was before FairFlow developed by @KyberNetwork 👇🏻 ⚖️ The imbalance in traditional pools In most AMMs, LPs shoulder impermanent loss on one side and fees on the other. But when prices swing and revert, there’s another drain: arbitrageurs skim profits by exploiting those rebalances. This gap that @KyberNetwork calls “opportunity value loss” has always been accepted as the cost of participation for LPs. 🔄 How FairFlow redistributes value Designed for Uniswap v4 and similar platforms, FairFlow is a swap hook that let LPs earn more by getting back arbitrage value. FairFlow changes this equation by routing all trades through KyberSwap’s aggregator. Instead of leaving arbitrage open to every bot, the aggregator verifies a fair market price and captures the difference when pools outperform that benchmark. That surplus, called Equilibrium Gain (EG), it’s collected by the FairFlow hook and redistributed back to LPs. ⚙️ LP-first mechanics and flexibility The design is also pragmatic. LPs don’t have to stake their tokens into separate contracts to earn Equilibrium Gains and Liquidity Mining Rewards. This means LP tokens stay liquid: they can be reused in lending protocols, staked elsewhere, or held directly, while still earning EG and LM. 🧱 Built Like Uni v4 FairFlow keeps LP funds safe by never touching liquidity, the hook acts only on takers. Same rock-solid model as Uniswap v4. I really like how it balances innovation with proven security. 💡Liquidity mining as a catalyst To accelerate adoption, Kyber has layered a liquidity mining program on top of FairFlow. Between Aug 27 and Nov 19, 500,000 $KNC will be distributed across multiple cycles. Simulation from KyberSwap already show FairFlow pools delivering higher APRs than their Uniswap v4 counterparts. Check the data yourself and see how the yields stack up 👇🏻
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