# Chainflip Chain Average transaction fee Methodology

## 1. Overview

Average transaction fee is defined as the average fee paid by users per transaction on Chainflip Chain. The typical cost of executing transactions on the network is reflected by this metric. Native transaction fees and tips are aggregated and divided by the total number of transactions. End-of-day price feeds are utilized to normalize the final values to USD.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events from `transactionPayment` pallets and extrinsic records on Chainflip Chain
- **External data**: End-of-day price feeds for the native asset

## 3. Step-by-step calculation

### Component A: Chainflip Chain fee extraction

- **Purpose**: Capture native transaction fees and tips paid on Chainflip Chain.
- **Logic**: `TransactionFeePaid` events from `transactionPayment` pallets are parsed. The transaction fee amount and tip are extracted from the event data, normalized by decimal precision, and summed to represent the total native fee per transaction.
- **Key fields**: `amount`, `tip`

### Component B: Chainflip Chain transaction volume tracking

- **Purpose**: Count the total number of transactions executed on Chainflip Chain.
- **Logic**: Distinct extrinsics are aggregated daily from the chain's extrinsic records to determine the total transaction count.
- **Key fields**: `extrinsic_id`

### Component C: USD conversion and average calculation

- **Purpose**: Convert native fees to USD and calculate the average fee per transaction.
- **Logic**: Daily native fees are multiplied by end-of-day asset prices to determine the total fee volume in USD. The total daily fee volume in USD is then divided by the daily transaction count to calculate the average transaction fee. Daily granularity is maintained using UTC day boundaries.

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

Average transaction fee

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

Average transaction fee

Average transaction fee

Chain breakdown