# Chainflip Chain Revenue Methodology

## 1. Overview

Revenue is defined as the portion of fees that a project retains, as determined by its take rate. The remaining fees are distributed to supply-side participants, such as lenders or liquidity providers. The earnings of a project from selling its product or service are represented by this metric, before cost of revenue, token incentives, and operating expenses. For Chainflip Chain, revenue is derived by aggregating native transaction fees, network fees from Chainflip DEX, and protocol fees from Chainflip Lending, while subtracting supply-side fees distributed to brokers and liquidity providers.

## 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`, `LiquidationFeeTaken`, and `LoanCreated` events from `lendingPools` contracts, covering Chainflip Chain
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Native transaction fee extraction

- **Purpose**: Capture native transaction fees paid on Chainflip Chain
- **Logic**: `TransactionFeePaid` events from `transactionPayment` contracts are parsed. The transaction fee amount and tip are extracted and summed to calculate the total native fee per transaction. These fees are denominated in the native FLIP asset.
- **Key fields**: `amount`, `tip`

### Component B: Chainflip DEX trading fee extraction

- **Purpose**: Capture network and broker fees from swap activities on Chainflip DEX
- **Logic**: For events post-runtime upgrade (on or after September 24, 2024), `SwapExecuted` events from `swapping` contracts are parsed to extract network fees and broker fees. For historical events, `NetworkFeeTaken` events from `liquidityPools` contracts (prior to August 28, 2024) and `swapping` contracts (between August 27, 2024 and September 24, 2024) are parsed to extract network fees, while broker fees are set to zero. A historical filter is applied to exclude buggy fee events prior to December 22, 2023, where the raw fee exceeds a set threshold. All trading fees are denominated in USDC.
- **Key fields**: `network_fee_usdc`, `broker_fee_usdc`, `fee_raw`

### Component C: Chainflip Lending fee extraction

- **Purpose**: Capture interest, origination, and liquidation fees from 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. These fee events are joined with asset details from `LoanCreated` events to identify the underlying asset. Lending fees are filtered to only include events on or after the lending product launch date.
- **Key fields**: `supply_amount_raw`, `protocol_amount_raw`, `fee_supply_amount_raw`, `fee_protocol_amount_raw`, `loan_id`

### Component D: USD normalization and valuation

- **Purpose**: Normalize fee amounts by asset decimals and convert them to USD
- **Logic**: Raw fee amounts are normalized by asset decimal precision using asset metadata. Normalized fees are then multiplied by end-of-day asset prices to determine their USD value.
- **Key fields**: `price_usd`

### Component E: Revenue aggregation

- **Purpose**: Calculate the final protocol revenue by subtracting supply-side fees from total fees
- **Logic**: Total fees and supply-side fees are aggregated daily. Total fees are comprised of native transaction fees, total trading fees (network and broker fees), and total lending fees (supply and protocol fees). Supply-side fees are comprised of broker fees from Chainflip DEX and supply-side fees from Chainflip Lending. Protocol revenue is calculated as total fees minus supply-side fees, which isolates native transaction fees, network trading fees, and protocol lending fees. Daily values are aggregated using UTC day boundaries.
- **Key fields**: `fees`, `fees_supply_side`

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Revenue

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

Revenue

Revenue

Chain breakdown