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 Fees Methodology

## 1. Overview

Fees measures the total value paid by users to interact with Chainflip's suite of products, which includes Chainflip Chain, Chainflip DEX, and Chainflip Lending. Infrastructure operators, brokers, and liquidity providers are compensated by these fees. Economic activity and value generation across the ecosystem are reflected by this metric.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events from `transactionPayment` contracts, `SwapExecuted` and `NetworkFeeTaken` events from `swapping` contracts, `NetworkFeeTaken` events from `liquidityPools` contracts, and `InterestTaken`, `OriginationFeeTaken`, and `LiquidationFeeTaken` events from `lendingPools` contracts, covering Chainflip
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Chainflip Chain transaction fees

- **Purpose**: Captures transaction fees and tips paid on Chainflip Chain.
- **Logic**: `TransactionFeePaid` events from `transactionPayment` contracts are parsed. The transaction fee amount and tip amount are extracted from the event data. Raw amounts are normalized by the native asset's decimal precision. The transaction fee and tip are summed to calculate total transaction fees.
- **Key fields**: `amount`, `tip`

### Component B: Chainflip DEX swap and broker fees

- **Purpose**: Captures network and broker fees generated from swap executions on Chainflip DEX.
- **Logic**: `SwapExecuted` events from `swapping` contracts are parsed for post-upgrade transactions to extract network and broker fees. For historical transactions, `NetworkFeeTaken` events from `liquidityPools` and `swapping` contracts are parsed to extract network fees, while broker fees are set to zero. Buggy historical events prior to December 22, 2023, where the fee exceeded 100 USDC, are excluded. Extracted fees are normalized by USDC decimal precision.
- **Key fields**: `network_fee`, `broker_fee`

### Component C: Chainflip Lending interest and protocol fees

- **Purpose**: Captures interest, origination, and liquidation fees from Chainflip Lending.
- **Logic**: `InterestTaken` events from `lendingPools` contracts are parsed to extract supply and protocol interest fees. `OriginationFeeTaken` and `LiquidationFeeTaken` events from `lendingPools` contracts are parsed to extract supply and protocol origination and liquidation fees. These events are joined with loan metadata to identify the underlying asset, and raw amounts are normalized by the asset's decimal precision. Supply and protocol fees are summed to calculate total lending fees.
- **Key fields**: `supply_amount`, `protocol_amount`

### Component D: USD conversion and aggregation

- **Purpose**: Normalizes all fee components to USD and aggregates them.
- **Logic**: Normalized fee amounts for each product are converted to USD using end-of-day price feeds for the respective assets. USD-denominated fees are aggregated by day, chain, and product. A zero-filling strategy is applied to ensure continuous daily data.
- **Key fields**: `fees`, `price_usd`

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

Total value users pay to use a protocol (gross fees, user-paid fees).

ChainflipFLIP

Fees

Fees

Competitive landscape

Chain breakdown