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 Average trading volume (per trade) Methodology

## 1. Overview

Average trading volume (per trade) is calculated as the average USD value of a single trade executed on Chainflip DEX. The metric is derived by dividing the total daily trading volume by the daily trade count. This ratio is utilized to analyze whether the platform is adopted primarily by institutional or retail market participants.

## 2. Data sources

- **Blockchain events**: `AssetSwapped` events from `liquidityPools` pallets, and `SwapRequested` and `SwapExecuted` events from `swapping` pallets on Chainflip Chain
- **External data**: End-of-day price feeds for USD conversion

## 3. Step-by-step calculation

### Component A: DEX trading volume extraction

- **Purpose**: Capture the total volume of assets swapped on Chainflip DEX
- **Logic**: `AssetSwapped` events are parsed from `liquidityPools` pallets. For each event, the raw swap amount is extracted. If the swap involves USDC as either the incoming or outgoing asset, the USDC amount is isolated. These amounts are normalized by decimal precision to determine the trading volume in USDC, which is then aggregated daily.
- **Key fields**: `from_asset`, `to_asset`, `amount`

### Component B: DEX trade count and hop calculation

- **Purpose**: Determine the total number of trade legs (hops) executed
- **Logic**: For historical data prior to the runtime upgrade on September 24, 2024, `SwapExecuted` events are parsed from `swapping` pallets. For data post-upgrade, `SwapRequested` events of type 'regular' or 'regularNoNetworkFee' are parsed from `swapping` pallets. A hop count is assigned to each swap request based on the assets involved: if either the input asset or output asset is USDC, the hop count is set to 1; otherwise, it is set to 2 to account for the multi-hop routing through USDC. The total trade count is calculated as the daily sum of these hop counts.
- **Key fields**: `input_asset`, `output_asset`, `request_type`

### Component C: USD conversion and average calculation

- **Purpose**: Convert trading volume to USD and calculate the average volume per trade
- **Logic**: Daily trading volume is converted to USD using end-of-day price feeds. The average trading volume (per trade) is calculated by dividing the total daily USD trading volume by the daily trade count. A division-by-zero guard is applied to handle days with no trading activity.
- **Key fields**: `trading_volume`, `trade_count`

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

ChainflipFLIP

Average trading volume (per trade)

Average trading volume (per trade)

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