# Chainflip DEX Trade count Methodology

## 1. Overview

Trade count is measured as the number of trades executed on Chainflip DEX. This metric is utilized to track how frequently assets are bought or sold through the decentralized exchange. The calculation is performed by analyzing swap requests and swap execution events on the Chainflip Chain, accounting for the routing path of each swap. Trades are aggregated per routing leg (or hop) to reflect the underlying execution steps on the decentralized exchange.

## 2. Data sources

- **Blockchain events**: `SwapRequested` and `SwapExecuted` events from the `swapping` pallet, covering the Chainflip Chain

## 3. Step-by-step calculation

### Component A: Chainflip DEX swap request extraction (Post-Upgrade)

- **Purpose**: Extract active swap requests initiated on Chainflip DEX after the protocol runtime upgrade
- **Logic**: `SwapRequested` events are parsed from the `swapping` pallet for transactions occurring on or after September 24, 2024 (the runtime upgrade timestamp). Events are filtered to include only regular swap requests or regular swap requests without network fees. The input asset, output asset, and transaction details are extracted for each request.
- **Key fields**: `input_asset`, `output_asset`, `block_timestamp`

### Component B: Chainflip DEX historical swap execution extraction (Pre-Upgrade)

- **Purpose**: Extract historical swap data executed on Chainflip DEX prior to the protocol runtime upgrade
- **Logic**: `SwapExecuted` events are parsed from the `swapping` pallet for transactions occurring before September 24, 2024. The input asset, output asset, and transaction details are extracted to capture historical swap activity.
- **Key fields**: `input_asset`, `output_asset`, `block_timestamp`

### Component C: Routing leg calculation and aggregation

- **Purpose**: Determine the number of trade hops per swap and aggregate the total trade count
- **Logic**: The post-upgrade swap requests and historical swap executions are combined. For each swap, a hop count is assigned based on the routing path: if either the input asset or the output asset is USDC, the hop count is set to 1; otherwise, the hop count is set to 2 to represent the multi-leg route. The total trade count is calculated by summing the hop counts and aggregating them by day.
- **Key fields**: `input_asset`, `output_asset`, `trade_count`

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

Number of trades executed on a decentralized exchange.

Trade count

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

Trade count

Trade count

Chain breakdown