# Chainflip DEX Trading volume Methodology

## 1. Overview

Trading volume is defined as the total value of trades executed on Chainflip DEX. This metric is used to assess the liquidity, usage, and overall economic activity of the decentralized exchange. Since trading fees are paid by users on their trades, this metric correlates with the protocol's capacity to generate fees and revenue. Volume is counted per routing leg, meaning each individual swap leg in a multi-hop trade is aggregated.

## 2. Data sources

- **Blockchain events**: `AssetSwapped` events from `liquidityPools` pallets, covering Chainflip Chain
- **External data**: End-of-day price feeds for USDC

## 3. Step-by-step calculation

### Component A: Chainflip DEX swap leg extraction

- **Purpose**: Extract raw swap leg data from the Chainflip Chain
- **Logic**: `AssetSwapped` events are parsed from the `liquidityPools` pallet. For each event, the source asset, destination asset, raw source amount, and raw destination amount are extracted. If the raw amounts are hex-encoded, they are converted to string integers before being cast to numeric values.
- **Key fields**: `asset`, `amount`

### Component B: Chainflip DEX USDC leg isolation and normalization

- **Purpose**: Identify the USDC-denominated value of each swap leg and normalize the decimals
- **Logic**: Each swap leg is evaluated to isolate the USDC component. If the source asset is USDC, the raw source amount is selected; if the destination asset is USDC, the raw destination amount is selected. The raw USDC amount is then normalized by its decimal precision.
- **Key fields**: `asset`, `amount`

### Component C: USD conversion and aggregation

- **Purpose**: Convert the normalized USDC volume to USD and aggregate to daily granularity
- **Logic**: The normalized USDC trading volume is multiplied by the end-of-day price of USDC to determine the final USD value. The volume is aggregated by day using UTC boundaries. Missing days are filled with zeros to ensure a continuous time series.
- **Key fields**: `timestamp`, `trading_volume`

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

Total value of spot trades executed on the exchange.

Trading volume

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

Trading volume

Trading volume

Chain breakdown