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 Total value locked Methodology

## 1. Overview

Total value locked (TVL) measures the total value of assets deposited into Chainflip Lending. This metric is utilized as a key indicator of the protocol's liquidity and capacity to support lending and borrowing activities. By tracking the net flows of supplied assets and collateral, the overall scale of user deposits is quantified. To prevent double-counting, the maximum of supplied assets or collateral is calculated per depositor.

## 2. Data sources

- **Blockchain events**: `LendingFundsAdded`, `LendingFundsRemoved`, `CollateralAdded`, and `CollateralRemoved` events from `lendingPools` contracts on Chainflip Chain
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Chainflip Lending flow extraction

- **Purpose**: Extract supply and collateral deposit and withdrawal events from the blockchain.
- **Logic**: `LendingFundsAdded` and `LendingFundsRemoved` events are parsed from `lendingPools` contracts to capture supply flows, where additions are treated as positive and removals as negative. Similarly, `CollateralAdded` and `CollateralRemoved` events are parsed from `lendingPools` contracts to capture collateral flows. For each event, the depositor account, asset address, and raw amount are extracted.
- **Key fields**: `account`, `token_address`, `amount`

### Component B: Balance tracking and double-counting prevention

- **Purpose**: Calculate running balances and apply deduplication logic per depositor.
- **Logic**: Daily deltas for supply and collateral flows are aggregated per account and asset. Running balances for both supply and collateral are calculated cumulatively over time. To prevent double-counting of assets that may act as both supply and collateral, the locked balance for each account and asset is determined by taking the greater of the running supply balance and the running collateral balance. These locked balances are then filled forward for days without activity to maintain continuous records.
- **Key fields**: `supply_bal`, `collateral_bal`, `locked`

### Component C: Aggregation and USD conversion

- **Purpose**: Aggregate locked balances and convert the values to USD.
- **Logic**: The locked balances are summed across all accounts to calculate the total locked amount per asset. These raw amounts are normalized by decimal precision using asset metadata. The normalized asset balances are then multiplied by end-of-day asset prices to determine the total value locked in USD. Daily values are zero-filled to ensure a continuous time series.
- **Key fields**: `tvl`, `price_usd`

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

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Total value locked

Total value locked

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