# Chainflip DEX Revenue Methodology

## 1. Overview

Revenue is defined as the portion of swap fees retained by Chainflip DEX after broker fees are distributed to supply-side participants. Protocol earnings are generated from network fees collected during cross-chain swaps, which are denominated in USDC. This metric is utilized to evaluate the economic sustainability and fee retention capabilities of the decentralized exchange. Broker fees are treated as supply-side fees and are deducted from total fees to isolate protocol revenue.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Swap fee extraction

- **Purpose**: To extract network and broker fees from swap events.
- **Logic**: Swap fees are extracted from two distinct historical phases based on runtime upgrades. For transactions occurring after the runtime upgrade, network fees and broker fees are parsed directly from `SwapExecuted` events emitted by the `swapping` pallet. For historical transactions prior to the upgrade, network fees are parsed from `NetworkFeeTaken` events emitted by the `liquidityPools` pallet (prior to the liquidity pool fee end date) and the `swapping` pallet (after the swapping fee start date). Historical broker fees are set to zero. Buggy historical fee events occurring before the pre-V1.1.4 cutoff with fee values exceeding 100 USDC are filtered out and excluded from the dataset.
- **Key fields**: `block_timestamp`, `network_fee`, `broker_fee`

### Component B: Supply-side fee allocation

- **Purpose**: To identify the portion of fees distributed to supply-side participants.
- **Logic**: Broker fees are designated as supply-side fees. These fees are aggregated daily from the broker fee component extracted in the swap fee step.
- **Key fields**: `block_timestamp`, `broker_fee`

### Component C: Revenue calculation and normalization

- **Purpose**: To calculate net protocol revenue and normalize the values to USD.
- **Logic**: Total fees are calculated as the sum of network fees and broker fees. Supply-side fees (broker fees) are then subtracted from total fees to determine net protocol revenue, which isolates the network fees retained by the protocol. Fee amounts are normalized by decimal precision. Daily values are converted to USD using end-of-day price feeds and aggregated using UTC day boundaries.
- **Key fields**: `timestamp`, `revenue`

*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

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

Revenue

Revenue

Chain breakdown