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 revenue per user (ARPU) Methodology

## 1. Overview

Average revenue per user (ARPU) is defined as a metric that represents the daily revenue generated per active user over a fixed 24-hour window. This metric is utilized to evaluate how effectively individual users are monetized across Chainflip Chain, Chainflip DEX, and Chainflip Lending. The calculation is performed by dividing the total daily protocol revenue by the number of active users (daily). By analyzing this metric, insights are gained into user value, monetization efficiency, and the overall economic health of the Chainflip ecosystem.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Chainflip Chain, Chainflip DEX, and Chainflip Lending active users aggregation

- **Purpose**: To determine the total number of unique active users (daily) across all Chainflip products.
- **Logic**: Unique user addresses are collected daily from Chainflip Chain, Chainflip DEX, and Chainflip Lending. For Chainflip Chain, transaction signers are extracted from extrinsics. For Chainflip DEX, traders are identified by extracting refund addresses or output addresses from `SwapRequested` events from `swapping` pallets. For Chainflip Lending, depositors, withdrawers, borrowers, and repayers are identified from `LendingFundsAdded`, `LendingFundsRemoved`, `LoanCreated`, and `LoanRepaid` events from `lendingPools` pallets. These addresses are combined and deduplicated daily at the project level to determine the total active users (daily).

### Component B: Chainflip Chain, Chainflip DEX, and Chainflip Lending revenue calculation

- **Purpose**: To determine the daily protocol revenue generated across all Chainflip products.
- **Logic**: Total fees are calculated by summing transaction fees from Chainflip Chain, swap fees from Chainflip DEX, and lending fees from Chainflip Lending. Transaction fees are extracted from `TransactionFeePaid` events from `transactionPayment` pallets. Swap fees, including network fees and broker fees, are extracted from `SwapExecuted` and historical `NetworkFeeTaken` events from `swapping` and `liquidityPools` pallets. Lending fees, including origination, liquidation, and interest fees, are extracted from `OriginationFeeTaken`, `LiquidationFeeTaken`, and `InterestTaken` events from `lendingPools` pallets. Supply-side fees, which consist of broker fees and lending supply fees, are subtracted from total fees to determine protocol revenue. All fee amounts are normalized by decimal precision and converted to USD using end-of-day price feeds.

### Component C: Average revenue per user calculation

- **Purpose**: To determine the average revenue generated per active user.
- **Logic**: Daily protocol revenue is divided by the active users (daily) for each 24-hour window. If active users (daily) are zero, the resulting ARPU is set to zero. The final values are aggregated daily with UTC day boundaries.

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

ChainflipFLIP

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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