FairFlow by @KyberNetwork is redefining the game for LPs FairFlow (FF) is a swap hook that enhances liquidity pools, built on Uniswap V4 and similar protocols, it lets LPs earn that juicy arbitrage value that usually goes straight into arbitragers’s pocket. Instead of just fees, you get extra yield from extra yield from arbitrage value, all without staking your LP tokens. ==== Here’s why: • In normal AMMs, LPs earn swap fees but lose “hidden value” from arbitrage to arbitrageurs → Even if prices return to normal and your “impermanent loss” looks zero, you still missed profits you could’ve made by actively rebalancing the pool • FairFlow changes that: the arbitrage gain (they call it Equilibrium Gain) is obsorbed and redistributed back to LPs. • And your LP tokens stay free to use elsewhere for extra yield. ==== Quick Simple Example: You LP 1 ETH + 1,000 USDC at $1,000 ETH. ETH pumps to $2,000 then back to $1,000. In this case, you’re fine - you earned fees while impermanent loss returns to zero. However, you still miss out on profit vs actively rebalancing the pool. → This missed profit is the “opportunity value loss” captured by arbitrageurs, who normally rebalance the pool on behalf of LPs. FF says nope that value gets shared back to you via the EG Sharing Program: • 70% of EG goes back to LPs. • 30% to platform/partners (for future rewards, LM, etc). And you don’t even need to lock or stake LP tokens. You keep them liquid, can drop them into lending, staking, whatever. Rewards are tracked off-chain and sent weekly in both pool tokens. *Note: The EG Sharing Program structure may be revised if needed ==== How it works behind the scenes: Make a swap on KyberSwap Aggregator • If the FairFlow pool give a better output than fair market output, part of the swap’s value is routed through the FairFlow pool and that profits is obsorbed by FairFlow instead of external arbitragers. • This profits is then redistributed to LPs in pool tokens. • Rewards share are handled off-chain and distribute to LP token holders ==== Basically: Provide liquidity → earn fees → plus get a slice of the arb profits → and still use your LP tokens elsewhere. Arbitrageurs hate this. LPs love this.