FairFlow Tops $3.2B in Trading Volume as Arbitrage Profits Flow Back to LPs

FairFlow, a Uniswap v4 hook built by KyberSwap, has completed its first year of operation. The protocol's key innovation is redirecting arbitrage profits back to liquidity providers instead of letting them be extracted by bots. Since its August 5, 2025 launch, FairFlow has facilitated over $3.2 billion in trading volume across 22 pools spanning Ethereum, Base, Arbitrum, Monad, and BNB Chain.

The platform operates as a 'hook' on Uniswap v4, which allows developers to attach custom logic to liquidity pools. When an arbitrageur extracts value from a price discrepancy between a pool and the broader market, FairFlow intercepts a portion of that profit and routes it back to the people who supplied the liquidity in the first place.

The split is 70/30, with liquidity providers receiving 70% of the captured excess gain (EG) while the platform retains 30%. Distributions happen weekly and arrive in the pool's native tokens. LPs don't need to stake anything extra; their funds remain in the underlying Uniswap v4 pool.

According to FairFlow, pools have generated approximately 21% APR compared to around 16% for standard Uniswap pools. The project has also run multiple liquidity mining programs using KNC, KyberSwap's native token.