# Chainflip Lending Revenue Methodology

## 1. Overview

Revenue is measured as the portion of lending fees retained by the Chainflip Lending protocol. These fees are generated from borrower interest payments, loan originations, and liquidations. While a portion of these fees is distributed to supply-side participants, the remaining protocol-retained fees are classified as revenue. This metric is utilized to assess the financial sustainability and direct earnings 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 extract supply-side and protocol-side fees from interest payments
- **Logic**: `InterestTaken` events from `lendingPools` contracts are parsed to extract interest-related fees. The raw event data is processed to identify the loan ID and the fee amounts. The supply-side fee is calculated by summing the first and third raw fields, while the protocol-side fee is calculated by summing the second and fourth raw fields. These raw amounts are mapped to their respective assets using loan metadata from `LoanCreated` events.
- **Key fields**: `block_timestamp` (timing), `loan_id` (loan identification), `fee_supply_amount_raw` (supply-side fee quantity), `fee_protocol_amount_raw` (protocol-side fee quantity)

### Component B: Origination and liquidation fee extraction

- **Purpose**: To extract supply-side and protocol-side fees from loan originations and liquidations
- **Logic**: `OriginationFeeTaken` and `LiquidationFeeTaken` events from `lendingPools` contracts are parsed to extract fees associated with loan originations and liquidations. The raw event data is processed to identify the loan ID, the raw supply-side fee amount, and the raw protocol-side fee amount. These raw amounts are mapped to their respective assets using loan metadata from `LoanCreated` events.
- **Key fields**: `block_timestamp` (timing), `loan_id` (loan identification), `supply_amount_raw` (supply-side fee quantity), `protocol_amount_raw` (protocol-side fee quantity)

### Component C: Fee aggregation and normalization

- **Purpose**: To combine all fee components and normalize them by asset decimals
- **Logic**: The extracted supply-side and protocol-side fees from interest, origination, and liquidation events are unioned and aggregated by day and asset. The raw fee amounts are normalized by dividing them by the asset's decimal precision, which is retrieved from asset metadata. Daily supply-side fees, protocol-side fees, and total fees (the sum of supply-side and protocol-side fees) are generated for each asset.
- **Key fields**: `timestamp` (timing), `token_address` (asset identification), `supply_fees` (normalized supply-side fees), `protocol_fees` (normalized protocol-side fees), `total_fees` (normalized total fees)

### Component D: USD conversion and revenue calculation

- **Purpose**: To convert fee values to USD and calculate the final protocol revenue
- **Logic**: The normalized daily fees are multiplied by end-of-day asset prices to convert them to USD. Total fees and supply-side fees are aggregated to the product level for Chainflip Lending. Finally, protocol revenue is calculated by subtracting the USD-denominated supply-side fees from the USD-denominated total fees, representing the net revenue retained by the protocol.
- **Key fields**: `timestamp` (timing), `product_id` (product identification), `revenue` (USD-denominated protocol 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

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

Revenue

Revenue

Chain breakdown