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

# Chainflip Average fees per user (AFPU) Methodology

## 1. Overview

Average fees per user (AFPU) is defined as the average fees paid per active user over a fixed 24-hour window for Chainflip. This metric is calculated by dividing the total daily fees by the active users (daily), reflecting the average daily cost incurred by an individual user for utilizing the protocol's services. Activity across Chainflip Chain, Chainflip DEX, and Chainflip Lending is captured by this metric. By analyzing this metric, insights into user transaction behavior, fee sensitivity, and the overall economic value generated per participant are provided.

## 2. Data sources

- **Fees**: Derived from the Fees metric
- **Active users (daily)**: Derived from the Active users (daily) metric

## 3. Step-by-step calculation

### Component A: Chainflip Chain fee and user tracking

- **Purpose**: Extracts transaction fees and identifies active users on the native Chainflip Chain.
- **Logic**: `TransactionFeePaid` events from `transactionPayment` contracts are parsed to extract the transaction fee amount and tip. These values are normalized by the decimal precision of the native FLIP asset. Active users are identified as the unique signers of extrinsics on the Chainflip Chain.
- **Key fields**: `amount`, `tip`, `signer`

### Component B: Chainflip DEX fee and user tracking

- **Purpose**: Extracts swap fees and identifies active traders on the Chainflip DEX.
- **Logic**: For swap fees, `SwapExecuted` events from `swapping` contracts are parsed to extract the network fee and broker fee (both denominated in USDC). For historical data, `NetworkFeeTaken` events from `liquidityPools` and `swapping` contracts are parsed, with anomalous pre-v1.1.4 fee events filtered out. Active traders are identified by extracting the refund address or output address from `SwapRequested` events in the `swapping` contract.
- **Key fields**: `network_fee_usdc`, `broker_fee_usdc`, `refundAddress`, `outputAddress`

### Component C: Chainflip Lending fee and user tracking

- **Purpose**: Extracts lending fees and identifies active users on Chainflip Lending.
- **Logic**: Lending fees are extracted from `OriginationFeeTaken`, `LiquidationFeeTaken`, and `InterestTaken` events from `lendingPools` contracts. These fees are split into supply fees and protocol fees, then normalized by the decimal precision of the respective asset. Active users are identified as depositors, withdrawers, borrowers, or repayers from `LendingFundsAdded`, `LendingFundsRemoved`, `LoanCreated`, and `LoanRepaid` events from `lendingPools` contracts.
- **Key fields**: `supply_amount_raw`, `protocol_amount_raw`, `fee_supply_amount_raw`, `fee_protocol_amount_raw`, `user_address`

### Component D: USD conversion and aggregation

- **Purpose**: Normalizes all fee values to USD and aggregates daily metrics.
- **Logic**: Daily fee amounts for each asset are multiplied by end-of-day asset prices to convert them to USD. Active users (daily) are aggregated across all products (Chainflip Chain, Chainflip DEX, and Chainflip Lending) using unique user addresses to determine the total active users (daily).
- **Key fields**: `price_usd`, `user_address`

### Component E: Average fees per user calculation

- **Purpose**: Calculates the final average fees paid per active user.
- **Logic**: The total daily fees in USD are divided by the total active users (daily). If no activity is recorded for a given day, the metric is filled with zero.
- **Key fields**: `fees`, `user_dau`

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

ChainflipFLIP

Average fees per user (AFPU)

Average fees per user (AFPU)

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