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An analysis of Chainflip, the upcoming native cross-chain DEX on Coinlist: its core mechanism and token model.

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CoinList will launch the Chainflip (FLIP) token sale at 1:00 AM Beijing time on September 1st.

Original Title: "Understanding Chainflip, the Native Cross-Chain DEX Soon to be Launched on Coinlist"

Source: Xingqiu Daily

CoinList announced that it will launch the Chainflip (FLIP) token sale at 1:00 on September 1st Beijing time. Let's take a look at the new generation cross-chain DEX Chainflip together.

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

Chainflip has not created new bridges, but instead leverages the benefits of integrating existing cross-chain solutions while introducing optimization mechanisms.

150 Main Validators and Scalable Signature Algorithms

A truly decentralized cross-chain network requires a large set of validators to achieve security and anti-censorship. Chainflip requires up to 150 validators for each vault. This approach is superior to similar cross-chain systems in terms of security in the sharing economy. In addition, Chainflip uses Schnorr signatures, allowing these 150 validators to support a large number of assets and multiple parallel signatures without incurring excessive hardware costs.

JIT AMM design can improve capital efficiency

Chainflip's JIT (just-in-time) AMM design solves cross-chain challenges by minimizing slippage and providing precise pricing. It effectively utilizes the liquidity of large trades, 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 has announced its token economic model and will airdrop it to the community. FLIP is the ERC-20 native token of Chainflip Labs, expected to be launched in the second quarter of 2023. The initial supply of the token is 90 million, with an annual inflation rate of 8%.

The allocation plan is as follows:

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

(2) 690 million FLIP tokens for token sales;

(3) 13 million FLIP tokens are distributed to contributors.

(4) Approximately 34 million FLIP tokens are allocated to strategic investors;

(6) 4,968,503 FLIP as circulating funds;

(7) 2, 200 million FLIP as reserve funds.