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 Expenses Methodology

## 1. Overview

Expenses measures the total cost Chainflip incurs to operate its cross-chain liquidity network. This metric specifically represents the token incentives paid to validators (authority nodes) on Chainflip Chain to secure the network and facilitate cross-chain swaps. These incentives are paid in the protocol's native FLIP asset and represent the primary operating expense of the protocol.

## 2. Data sources

- **Blockchain events**: `FlipMinted` events from `flip` contracts, and epoch emission rate configurations, covering Chainflip Chain
- **External data**: End-of-day price feeds for the native FLIP asset

## 3. Step-by-step calculation

### Component A: Historical emission reconstruction

- **Purpose**: Reconstruct daily validator emissions prior to October 2025
- **Logic**: Epoch emission rates are extracted from historical configurations to determine the authority emission rate per block. The total emissions for each historical epoch are calculated and allocated proportionally to each calendar day based on the number of seconds the day overlaps with the epoch duration.
- **Key fields**: `start_ts` (epoch start), `next_start_ts` (epoch end), `authority_rate_flip_per_block` (emission rate)

### Component B: On-chain mint event extraction

- **Purpose**: Capture validator emissions from October 2025 onward
- **Logic**: `FlipMinted` events from `flip` contracts are parsed. The raw minted amount is extracted from the event data.
- **Key fields**: `block_timestamp` (timing), `amount_raw` (minted quantity)

### Component C: Token incentive aggregation and USD conversion

- **Purpose**: Combine emission sources and normalize to USD
- **Logic**: Historical daily emissions and post-October 2025 minted amounts are combined into a single daily time series. The aggregated daily FLIP amounts are normalized by decimal precision and multiplied by end-of-day price feeds to convert the values to USD.
- **Key fields**: `minted_flip` (aggregated asset amount), `price_usd` (asset price)

### Component D: Expenses mapping

- **Purpose**: Map token incentives to the final expenses metric
- **Logic**: Expenses are mapped directly from the calculated USD value of token incentives. A zero-fill strategy is applied to ensure continuous daily data coverage.
- **Key fields**: `token_incentives` (calculated incentives), `expenses` (final metric value)

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

Total project operating and incentive expenses.

ChainflipFLIP

Expenses

Expenses

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