Unlocking sustainable yield generation with KyberSwap’s Fairflow [Hook Design Lab]

Hooks continue to broaden what's possible in AMM design. Over the last year, we've seen over 21,000+ hooks initialized, enabling innovations like dynamic fees, vault automation, just-in-time liquidity, and MEV redistribution. The Hook Design Lab accelerates v4 teams building these innovations. Today, we're welcoming KyberSwap to the program for FairFlow: a hook designed to ensure liquidity providers capture the full economic value of the liquidity they provide.

KyberSwap is a decentralized trading solution that helps users find the best token swap rates by routing trades through multiple DEXs and other liquidity sources across multiple chains. With FairFlow, KyberSwap brings improvements to how LPs earn.

FairFlow: Empowering LPs

FairFlow unlocks sustainable yields for liquidity providers by absorbing arbitrage value and returning it, known as Equilibrium Gain (EG), directly to LPs. By capturing value that would typically be extracted by arbitrageurs, FairFlow transforms how LPs are compensated for the liquidity they provide. In addition to LP fees, FairFlow has the potential to significantly boost APR through the Equilibrium Gain Sharing Program.

FairFlow is now live across 15 pools, facilitating over $1.4 billion in trading volume on Ethereum, Base, and BNB Chain.

We look forward to seeing how FairFlow improves LP economics across the Uniswap v4 ecosystem, learn more here.