Abstract-- We introduce in this paper CHESS, an applicationaware space for enhanced scalable services in overlay networks. In this new space, the proximity of peers is determined according to a utility function that considers the network parameters (e.g., delay, bandwidth, and loss rate) impacting application performance. We motivate the need for this new notion by showing that the proximity in the delay space does not automatically lead to a proximity in another space (e.g., space of the bandwidth). For determining the proximity in CHESS, network parameters must be estimated easily and scalably. Therefore, we use the matrix factorization approach for estimating the delay and loss parameters. Besides, we propose a scalable model that estimates the bandwidth among peers using the bandwidth of the indirect paths that join them via a set of landmarks1 . Our idea is that an indirect path shares the same tight link with the direct path with a probability that depends on the location of the ...