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.

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# Chainflip Active loans Methodology

## 1. Overview

Active loans measures the value of user deposits that are lent out to borrowers. On Chainflip Lending, the outstanding principal and accrued interest of active user loans are tracked to reflect the portion of deposits generating interest. This metric is used to assess the utilization of deposited assets and the protocol's capacity to generate revenue. Boost loans are excluded from this metric to focus solely on organic user borrowing activity.

## 2. Data sources

- **Blockchain events**: `LoanCreated`, `LoanUpdated`, `LoanRepaid`, and `InterestTaken` events from the `lendingPools` pallet, covering Chainflip Chain
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Chainflip Lending loan event parsing and classification

- **Purpose**: Extract and classify loan events from the lending protocol
- **Logic**: Events from the `lendingPools` pallet are parsed to identify loan activities. Loans are classified as either user loans or boost loans based on the presence of boost parameters in the `LoanCreated` event data. Only loans classified as user loans are retained for the active loans calculation, while boost loans are filtered out.
- **Key fields**: `loan_id`, `asset`, `loan_type`

### Component B: Chainflip Lending flow calculation

- **Purpose**: Calculate the net change in loan balances from individual events
- **Logic**: Raw amounts representing principal changes and interest accruals are extracted from the parsed events. For `LoanCreated` events, the initial loan amount is captured. For `LoanUpdated` events, the updated principal is added. For `LoanRepaid` events, the repaid amount is subtracted. For `InterestTaken` events, the accrued interest components are summed and added to the flow. Events with null or non-applicable amounts are excluded.
- **Key fields**: `amount`, `event_method`

### Component C: Chainflip Lending cumulative outstanding balance tracking

- **Purpose**: Calculate the running outstanding balance of active loans
- **Logic**: Net daily flows are aggregated by asset. A running cumulative sum of these daily flows is calculated to determine the total outstanding active loans over time. For days without new events, the last known outstanding balance is filled forward to maintain a continuous daily time series.
- **Key fields**: `timestamp`, `active_loans`

### Component D: USD conversion and aggregation

- **Purpose**: Normalize asset amounts and convert them to USD
- **Logic**: Outstanding loan balances are normalized by decimal precision using asset metadata. The normalized balances are then multiplied by end-of-day asset prices to calculate the final active loans metric in USD.
- **Key fields**: `price_usd`, `decimals`

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

Value of loans currently outstanding to borrowers.

ChainflipFLIP

Active loans

Active loans

Competitive landscape

Chain breakdown