What is Chainflip?
Chianflip is a cross-chain AMM that allows users to swap native assets across any chains without wrapped tokens or specialized wallets. Wrapped tokens are custom versions of native crypto tokens built to be transferable on foreign blockchains.
Chainflip improves on issues related to security, transaction speed and decentralization. The project is expected to replace centralized exchanges (CEX) in transferring assets between multiple networks, helping users save time and enjoy smooth experiences.
Chainflip’s main component
Vault
Vault is an MPC (Multi-Party-Computation) wallet – a multi-signature wallet, managed by up to 150 different validators. It acts as an asset storage for multi-chain transactions. According to the Chainflip team, there are two types of vaults:
- Vault Contract: A smart contract that stores assets on networks, capable of transferring assets if it is approved by at least 100 validators. Vault Contract is also a MPC wallet.
- Native Wallet Vault: An off-chain wallet managed by at least 100 validators. This wallet uses the FROST signature system to increase security.
Overall, Chainflip’s Vault is quite similar to Liquidity Pool, but these are wallets managed by validators and do not provide liquidity.
State Chain
State Chain is an application-specific blockchain (Appchain) at the heart of the Chainflip network designed to facilitate decentralized cross-chain swaps within the Chainflip ecosystem. State Chain provides the ability to handle high transaction volumes for the Chainflip protocol. The purpose of State Chain is to increase security and expand throughput for the platform.
According to the developer team, State Chain serves as the core database for all activity occurring in the Chainflip protocol.
Validator
To become a validator, users need to join the Validator Auction. Validator Auction is where auctions take place on Chainflip’s State Chain network. Validator Auction aims to identify the user with the largest amount of staking and confirm them as a validator.
Once they become validators, they can participate in transaction confirmation, network protection, and receive FLIP rewards from State Chains.
Highlights
Just in Time AMM: Chainflip’s AMM allows users to trade cross-chain without high slippage. AMM also promotes competition among liquidity providers to ensure benefits for users.
Decentralization: Maintain credible decentralization, audited open-source software, and transparent network operation from the very beginning.
Tokenomics: The team will use the transaction fees to redeem FLIP tokens from other AMM exchanges, thereby guaranteeing the value of FLIP tokens.
FLIP Token
Key metrics
Token name: Chainflip
Ticker: FLIP
Blockchain: Ethereum
Contract: Updating.
Token type: Governance, Utility
Total Supply: 90,000,000 FLIP
Use cases
Participate in governance and vote on develop decisions of the project
Staking and becoming a validator on State Chain.
Transaction fees on State Chains.
Allocation
Strategic Investor: 38%
Treasury Reserves: 24.4%
Contributor Allocation: 14.4%
Token Sales: 7.7%
Liquid Treasury: 5.5%
Community Airdrops: 5.3%
Oxen Foundation Allocation: 4.7%
Roadmap
Live now: Token sale
Q3 2023:
- Mainnet Initialisation & Token Launch
- Product Launch (Berghain Milestone)
Q4 2023: Expand Chain Integrations
Q1 2024:
- Expand Wallet Integrations
- Gas Optimisation: Auxiliary Chain
Q2 2024: Cross-Chain Execution Support