# Chainflip Lending Fees Methodology

## 1. Overview

Fees are measured as the total economic value paid by borrowers and users of Chainflip Lending. These fees are generated through interest accrual, loan origination, and liquidation events within the lending pools. The collected fees are split between supply-side participants (liquidity providers) and the protocol treasury. This metric is utilized to assess the overall economic activity and revenue-generating capacity of Chainflip Lending.

## 2. Data sources

- **Blockchain events**: `InterestTaken`, `OriginationFeeTaken`, and `LiquidationFeeTaken` events from `lendingPools` contracts, covering Chainflip Chain
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Interest fee extraction

- **Purpose**: To capture fees accumulated from interest taken on active loans.
- **Logic**: `InterestTaken` events are parsed from `lendingPools` contracts. The raw supply-side interest fee is calculated by summing the first and third data fields, while the raw protocol-side interest fee is calculated by summing the second and fourth data fields. These raw amounts are mapped to their respective loan identifiers to determine the underlying asset.
- **Key fields**: `block_timestamp`, `loan_id`, `amount`

### Component B: Origination and liquidation fee extraction

- **Purpose**: To capture fees generated during loan origination and liquidation events.
- **Logic**: `OriginationFeeTaken` and `LiquidationFeeTaken` events are parsed from `lendingPools` contracts. The raw supply-side fee amount and protocol-side fee amount are extracted directly from the event data. These events are joined with loan creation records using the loan identifier to associate each fee event with its corresponding asset.
- **Key fields**: `block_timestamp`, `loan_id`, `amount`, `asset`

### Component C: Normalization and USD conversion

- **Purpose**: To normalize raw fee amounts by asset decimals and convert them to USD.
- **Logic**: The extracted interest, origination, and liquidation fees are aggregated daily by asset. Raw fee amounts are normalized using asset metadata to correct for decimal precision. The normalized fee values are then multiplied by end-of-day asset prices to calculate the daily fee volume in USD.
- **Key fields**: `timestamp`, `asset`, `fees`, `price`

*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

Lending

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 Lending

Fees

Fees

Chain breakdown