# Chainflip Chain Fees Methodology

## 1. Overview

Fees measures the total economic value paid by users to interact with Chainflip Chain. This metric includes native transaction fees paid for executing extrinsics on Chainflip Chain, swap fees (network and broker fees) paid by traders on Chainflip DEX, and lending fees (interest, origination, and liquidation fees) paid by borrowers on Chainflip Lending. These fees represent the total cost of utilizing the Chainflip ecosystem and are normalized to USD to evaluate the economic activity generated by the platform.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events from `transactionPayment` contracts; `SwapExecuted` and `NetworkFeeTaken` events from `swapping` contracts; `NetworkFeeTaken` events from `liquidityPools` contracts; and `InterestTaken`, `OriginationFeeTaken`, and `LiquidationFeeTaken` events from `lendingPools` contracts, covering Chainflip Chain
- **External data**: End-of-day price feeds for native and supported assets, and asset metadata for decimal normalization

## 3. Step-by-step calculation

### Component A: Chainflip Chain transaction fees

- **Purpose**: Capture native transaction fees and tips paid for executing transactions on Chainflip Chain
- **Logic**: `TransactionFeePaid` events from `transactionPayment` contracts are parsed. The transaction fee amount and tip amount are extracted from the event data, normalized by the native asset's decimal precision, and summed to calculate the total transaction fee per event. These values are aggregated daily.
- **Key fields**: `amount`, `tip`

### Component B: Chainflip DEX swap fees

- **Purpose**: Capture network and broker fees paid by users executing swaps on Chainflip DEX
- **Logic**: For events occurring after the runtime upgrade, `SwapExecuted` events from `swapping` contracts are parsed to extract network fees and broker fees. For historical events prior to the upgrade, `NetworkFeeTaken` events from `liquidityPools` contracts (pre-August 2024) and `swapping` contracts (August 2024 to September 2024) are parsed to extract network fees, while broker fees are set to zero. Historical events prior to December 22, 2023, with fees exceeding a specific threshold are excluded to filter out known buggy events. All extracted fees are normalized by decimal precision and aggregated daily.
- **Key fields**: `network_fee_usdc`, `broker_fee_usdc`, `fee_raw`

### Component C: Chainflip Lending fees

- **Purpose**: Capture interest, origination, and liquidation fees paid by borrowers on Chainflip Lending
- **Logic**: `InterestTaken` events from `lendingPools` contracts are parsed to extract supply-side and protocol-side interest fees. Additionally, `OriginationFeeTaken` and `LiquidationFeeTaken` events from `lendingPools` contracts are parsed to extract supply-side and protocol-side origination and liquidation fees. The raw fee amounts are mapped to their respective loan assets using loan creation records, normalized by the asset's decimal precision, and summed to calculate total lending fees. These values are aggregated daily.
- **Key fields**: `supply_amount_raw`, `protocol_amount_raw`, `fee_supply_amount_raw`, `fee_protocol_amount_raw`, `loan_id`

### Component D: USD conversion and final aggregation

- **Purpose**: Normalize all fee components to USD and aggregate them into a single metric
- **Logic**: Daily aggregated fees from Chainflip Chain transaction fees, Chainflip DEX swap fees, and Chainflip Lending fees are combined. Fees denominated in non-USD assets are multiplied by end-of-day asset prices to convert them to USD. The final values are aggregated to produce the total daily fees for Chainflip Chain, with missing days zero-filled and filtered based on chain availability.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value users pay to use a protocol (gross fees, user-paid fees).

Fees

Blockchains (L1)

Chainflip operates a decentralized network of 150 validators that collectively control multi-chain vaults using threshold signature schemes (TSS). The protocol uses a Just-In-Time (JIT) AMM where liquidity providers compete to fill swap orders at the moment of execution, enabling capital-efficient cross-chain swaps. A portion of each swap fee is used to buy and burn FLIP tokens.

Chainflip is a decentralized cross-chain swap protocol that enables native asset exchanges across blockchains including Bitcoin, Ethereum, and Solana without wrapped tokens or traditional bridges. It was launched in 2023 by Chainflip Labs and uses a JIT AMM model combined with MPC-based vault technology to provide competitive pricing on cross-chain trades.

Chainflip is governed by its validator set and FLIP tokenholders. Validators stake FLIP to participate in the network and earn fees from swaps. The protocol is developed and maintained by Chainflip Labs.

Chainflip Chain

Fees

Fees

Chain breakdown