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 Revenue Methodology

## 1. Overview

Revenue measures the portion of fees that is retained by the protocol, as determined by its take rate. Total fees are collected across Chainflip Chain, Chainflip DEX, and Chainflip Lending, with supply-side fees distributed to brokers and liquidity providers. Revenue is calculated by deducting these supply-side distributions from the total fees. Net earnings of the protocol before operating expenses, cost of revenue, and token incentives are represented 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 for native and supported assets

## 3. Step-by-step calculation

### Component A: Chainflip Chain fee collection

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

### Component B: Chainflip DEX fee collection

- **Purpose**: Swap and network fees from Chainflip DEX are captured
- **Logic**: For historical data, `NetworkFeeTaken` events from `liquidityPools` and `swapping` contracts are parsed to extract the network fee. Post-upgrade, `SwapExecuted` events from `swapping` contracts are parsed to extract both network fees and broker fees. All extracted fees are normalized by decimal precision.
- **Key fields**: `network_fee`, `broker_fee`, `fee`

### Component C: Chainflip Lending fee collection

- **Purpose**: Lending-related fees from Chainflip Lending are captured
- **Logic**: `InterestTaken`, `OriginationFeeTaken`, and `LiquidationFeeTaken` events from `lendingPools` contracts are parsed. For interest events, the supply fee and protocol fee components are extracted and summed. For origination and liquidation events, the supply and protocol fee amounts are extracted. All raw fee amounts are normalized by the decimal precision of the respective loan assets.
- **Key fields**: `supply_amount`, `protocol_amount`

### Component D: Supply-side fee allocation

- **Purpose**: The portion of fees distributed to supply-side participants is identified
- **Logic**: Supply-side fees are aggregated from two sources: broker fees extracted from Chainflip DEX `SwapExecuted` events, and supply fees extracted from Chainflip Lending `InterestTaken`, `OriginationFeeTaken`, and `LiquidationFeeTaken` events. The earnings of brokers and liquidity providers are represented by these values.
- **Key fields**: `broker_fee`, `supply_amount`

### Component E: USD conversion and revenue aggregation

- **Purpose**: All fee components are converted to USD and net protocol revenue is calculated
- **Logic**: Daily fee and supply-side fee totals are converted to USD using end-of-day price feeds. Total fees are calculated as the sum of fees from Chainflip Chain, Chainflip DEX, and Chainflip Lending. Total supply-side fees are calculated as the sum of broker fees and lending supply fees. Protocol revenue is calculated by subtracting total supply-side fees from total fees. Daily values are aggregated using UTC day boundaries.
- **Key fields**: `fees`, `fees_supply_side`, `revenue`

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

ChainflipFLIP

Revenue

Revenue

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