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Chainflip is a cross-chain AMM that enables native asset swaps without wrapped tokens or specialized wallets It is a decentralized automated market maker-based protocol.
Chainflip Introduction
Chainflip’s token is called FLIP and it is utilized as collateral by validators to offer the network economic security. The protocol's fee is between 0.10% and 0.20% for each swap. The fee pays for the purchase and burn of FLIP tokens straight from the Chainflip AMM. Users don’t need to back up a key file, download a browser wallet, or install software for Chainflip. It works by sending tokens and providing a compatible address. The Chainflip protocol is enshrined in a Proof-of-Stake blockchain referred to as the State Chain. Built utilizing Substrate, the State Chain is natively able to handle assets within the Polkadot ecosystem.
The multichain feature of Chainflip means it can support different generic decentralized transaction networks, as far as it meets minimum security requirements. All balances, swaps, and events are usually tracked on the Chainflip State Chain, meaning that users pay transaction fees for the blockchains they interact with. Illustratively, a user sending BTC and getting DOT will pay one transaction fee in BTC on the way in, and one transaction fee in DOT on the way out. Users are not required to pay ETH gas fees if they are not sending or receiving any ETH-based assets.
Utilizing the FLIP token as collateral, validators construct joint wallets on every supported blockchain. The wallets are then secured via game theory, threshold encryption, multi-party computation, and the protocol’s consensus guidelines. Each time swaps are processed by the system, FLIP is automatically purchased and burned, funding the emissions required to fund Validators and offer liquidity incentives. For the average user, it involves swapping digital assets for another native token without staking, collateral, wrapping, or special wallets. Users also are not required to purchase FLIP directly to utilize the system. They require a browser and a destination address to make use of Chainflip.
