An Overview of Coinlist’s Upcoming Native Cross-Chain DEX Chainflip Mechanism, Features, and Token Economy

Overview of Coinlist's Native Cross-Chain DEX Chainflip Mechanism, Features, and Token Economy

Author: Jessica

CoinList announced that the Chainflip (FLIP) token sale will start at 1:00 am Beijing time on September 1st. Let’s learn about the next-generation cross-chain DEX, Chainflip.

Chainflip is a decentralized and trustless protocol that allows seamless value transfer between any blockchain, including BTC, EVM, and underlying networks.

Using Chainflip’s Just-in-Time (JIT) Automated Market Maker (AMM), users can exchange assets between chains without the need to wrap tokens, use traditional cross-chain bridges, or rely on centralized exchanges. The JIT AMM sources liquidity from its connected chains and partner aggregators, providing users with accurate, competitive prices, and low spot trading costs.

Instead of creating new bridges, Chainflip leverages the advantages of existing cross-chain solutions while introducing optimization mechanisms.

150 Main Validators and Scalable Signature Algorithm

A truly decentralized cross-chain network requires a large set of validators to achieve security and resistance to censorship. Each Chainflip vault requires up to 150 validators. In terms of shared economic security, this approach is superior to similar cross-chain systems. Additionally, Chainflip uses Schnorr signatures, enabling these 150 validators to support a large number of assets and multiple parallel signatures without incurring excessive hardware costs.

JIT AMM Design for Improved Capital Efficiency

Chainflip’s JIT (Just-in-Time) AMM design addresses cross-chain challenges by minimizing slippage and providing precise pricing. It effectively utilizes liquidity from large trades and acts as a decentralized aggregator for all markets. This makes Chainflip similar to an open and transparent decentralized OTC service, providing price advantages.

Token Economics

Chainflip Labs has released its token economics model and will airdrop tokens to the community. FLIP is the native ERC-20 token of Chainflip Labs, expected to launch in the second quarter of 2023. The initial supply of the token is 90 million, with an annual inflation rate of 8%.

The distribution plan is as follows:

(1) 4.75 million FLIP tokens will be airdropped to service node operators who participated in the Service Node airdrop program in 2020 and 2021.

(2) 6.9 million FLIP tokens will be allocated for token sales.

(3) 13 million FLIP tokens will be allocated to contributors.

(4) Approximately 34 million FLIP tokens will be allocated to strategic investors.

(5) 4.2 million FLIP tokens will be allocated to the Oxen Foundation.

(6) 4,968,503 FLIP tokens will be allocated for liquidity.

(7) 22 million FLIP tokens will be allocated as reserve funds.

Chainflip Labs has raised $10 million in funding from Framework Ventures, Blockchain Capital, and LianGuaintera Capital in exchange for equity. Simon Harman, the founder and CEO of Chainflip, stated that the startup aims to “maximize capital efficiency” by providing a simple interface and user experience, eliminating the need for token wrapping or small wallets.

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