# Chainflip DEX Fees Methodology

## 1. Overview

The Fees metric for Chainflip DEX is defined as the total value paid by users to execute cross-chain swaps. These fees are composed of network fees, which are collected to burn FLIP, and broker fees, which are paid to front-end operators facilitating the swaps. Economic activity and protocol utility are assessed using this metric.

## 2. Data sources

- **Blockchain events**: `SwapExecuted` and `NetworkFeeTaken` events from `swapping` and `liquidityPools` pallets, covering the Chainflip Chain
- **External data**: End-of-day price feeds for USDC

## 3. Step-by-step calculation

### Component A: Chainflip DEX historical network fee extraction

- **Purpose**: Historical network fees collected prior to the protocol's runtime upgrade are captured.
- **Logic**: `NetworkFeeTaken` events are parsed from `liquidityPools` pallets (for events prior to August 28, 2024) and `swapping` pallets (for events between August 27, 2024, and September 24, 2024). The raw fee amount is extracted from the event data, normalized by USDC decimal precision, and the broker fee is set to zero. Known buggy events prior to December 22, 2023, where the extracted fee exceeds 100 USDC, are excluded.
- **Key fields**: `block_timestamp` (timing), `fee_raw` (raw fee amount)

### Component B: Chainflip DEX post-upgrade swap fee extraction

- **Purpose**: Both network and broker fees from swaps executed after the protocol's runtime upgrade are captured.
- **Logic**: `SwapExecuted` events are parsed from `swapping` pallets for transactions occurring on or after September 24, 2024. The network fee and broker fee are extracted from the event data and normalized by USDC decimal precision.
- **Key fields**: `block_timestamp` (timing), `network_fee` (network fee amount), `broker_fee` (broker fee amount)

### Component C: Chainflip DEX USD conversion and aggregation

- **Purpose**: Fee components are combined and normalized to USD.
- **Logic**: The historical and post-upgrade fee datasets are combined. Network fees and broker fees are summed to calculate the total fees in USDC. The USDC values are converted to USD using end-of-day price feeds. Daily USD values are aggregated with UTC day boundaries.
- **Key fields**: `timestamp` (daily boundary), `fees` (total fees in USD)

*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

Exchanges (DEX)

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 DEX

Fees

Fees

Chain breakdown