Understand the native cross-chain DEX Chainflip that will be launched on Coinlist in one article

CoinList announced that it will start the Chainflip (FLIP) token sale at 1:00 on September 1, Beijing time. Let’s learn about the new generation of cross-chain DEXChainflip.

Chainflip is a decentralized, trustless protocol that allows for seamless value transfers between any blockchain, including BTC, EVM, and the underlying network.

Using Chainflip’s just-in-time (JIT) automated market maker (AMM), users can exchange assets between chains without needing to wrap tokens, use traditional cross-chain bridges, or go through centralized exchanges. JIT AMM sources liquidity from its connected chains and cooperative aggregators, providing users with accurate, competitive prices and low spot transaction fees.

Instead of creating a new bridge, Chainflip integrates the advantages of existing cross-chain solutions while introducing an optimization mechanism.

150 major validators and scalable signature algorithms

A truly decentralized cross-chain network requires a large validator set for security and anti-censorship. Chainflip requires up to 150 validators per vault. This approach outperforms comparable cross-chain systems in terms of shared economy security. 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 Capital Efficiency

Chainflip’s JIT (just-in-time) AMM design solves cross-chain challenges by minimizing slippage and providing precise pricing. It effectively leverages the liquidity of large exchanges, acting as a decentralized aggregator for all markets. This makes Chainflip similar to an open and transparent decentralized OTC service, achieving price advantages.

Token Economic Model

Chainflip Labs announced the token economic model and will airdrop it to the community. FLIP is Chainflip Labs’ native ERC-20 token and is expected to launch in Q2 2023. The token has an initial supply of 90 million and an annual inflation rate of 8%.

The allocation plan is as follows: (1) 4.75 million FLIPs will be airdropped to the community and distributed to service node operators participating in the Service Node airdrop plan in 2020 and 2021; (2) 6.9 million FLIPs for token sale; (3) 13 million FLIPs are allocated to contributors; (4) About 34 million FLIPs are allocated to strategic investors; (5) 4.2 million FLIPs are allocated to the Oxen Foundation; (6) 4,968,503 FLIPs as working capital; (7) 22 million FLIPs are used as reserve funds.

It is reported that Chainflip Labs raised US$10 million, and Framework Ventures, Blockchain Capital and Pantera Capital participated in the investment, in exchange for equity in the company. Chainflip founder and CEO Simon Harman said the startup is trying to “maximize capital efficiency” with a simple interface and user experience that eliminates the need for wrapped tokens or small wallets.