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 Median transaction fee Methodology

## 1. Overview

Median transaction fee is defined as the median fee paid across all transactions. The typical cost paid by a user is shown, without skew from very high or low values. For Chainflip Chain, the typical cost incurred by users to execute transactions on the native state chain is represented. Both base transaction fees and validator tips are accounted for to provide an accurate representation of transaction costs.

## 2. Data sources

- **Blockchain events**: `TransactionFeePaid` events from the `transactionPayment` pallet, covering Chainflip Chain
- **External data**: End-of-day price feeds for the native asset (FLIP)

## 3. Step-by-step calculation

### Component A: Chainflip Chain fee extraction

- **Purpose**: Extract transaction fees and tips from native chain events
- **Logic**: `TransactionFeePaid` events are parsed from the `transactionPayment` pallet on Chainflip Chain. The base fee amount and the tip amount are extracted from the event data payload. These values are normalized by the asset's decimal precision.
- **Key fields**: `amount`, `tip`

### Component B: Chainflip Chain median fee calculation

- **Purpose**: Calculate the daily median transaction fee
- **Logic**: For each transaction, the total fee is calculated by summing the base fee amount and the tip. Transactions are grouped by day using UTC boundaries. The median fee is calculated for each day by taking the 50th percentile of the total transaction fees.
- **Key fields**: `fee_amount`

### Component C: USD conversion and finalization

- **Purpose**: Convert the median fee to USD and format the final metric
- **Logic**: The daily median transaction fee is multiplied by the end-of-day price of the native asset to convert the value to USD. Missing days are filled with zeros to ensure a continuous time series.
- **Key fields**: `transaction_fee_median`, `price_usd`

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

ChainflipFLIP

Median transaction fee

Median transaction fee

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