⛓️Intro to ChainFlip

El Dorado utilizes Chainflip as the underlying infrastructure to provide cross-chain swaps for your native Layer 1 assets.

So what is Chainflip?

Intro To Chainflip

Chainflip is a decentralized, trustless protocol that enables native cross-chain swaps between different blockchains. Chainflip is essentially a Cross-Chain Uniswap that allows users to swap assets between major blockchains without any wrapped tokens, or traditional bridging, and at extremely competitive pricing using the Just in Time AMM model.

Innovations

Numerous innovations in the Chainflip were built to support generalized cross-chain capability, decentralization, composability, and sustained value capture via the $FLIP token.

1. Just in Time (JIT) AMM addresses the limitations introduced by the nature of cross-chain transfers by neutralizing slippage for most users and providing better pricing for high-liquidity pairs. A JIT AMM is a decentralized method of getting users close to market prices at all times. It also gives free trade flow to market makers who can integrate the AMM into their existing flow sources.

2. Extreme Capital Efficiency due to the new concentrated liquidity system benefits both users and liquidity providers.

3. Better Pricing as market makers are incentivized to offer the best price. Users get accurate pricing and low slippage, even when placing large trades.

4. Frost Signature Scheme relies on Schnorr signatures for fast and scalable multi-party computation, allowing for a large set of signers. FROST allows Chainflip to secure all Vaults using the same Authority Set of 150 Validators, offering substantial benefits in terms of economic security and a simpler Vault management logic compared to other Cross-Chain Liquidity Networks.

5. State Chain is a Substrate-based application-specific blockchain that acts as the heart of the Chainflip network designed to facilitate cross-chain swaps.

6. Validator Auction, Bonds, and Rewarding system grants validator slots based on the results of regular auctions where the winners of the $FLIP bidding auction can join the authority set and start earning rewards.

7. Ingress is the process of observing external chains for events and registering those related to the Chainflip protocol such as user deposits for swaps, providing liquidity, funding their accounts, and changes to vaults triggered by the network.

8. Egress is the process of creating, signing, and broadcasting transactions out of the protocol for actions such as sending outputs of a swap to a user's address, sending assets to a liquidity provider that is withdrawing, rotating aggregate keys or sweeping funds into the Vaults.

9. $USDC-denominated pools are used by default pairing for all liquidity pools in the system. Using a common base pair for all pools is an excellent method of reducing liquidity fragmentation and in almost all cases reducing aggregate slippage for all users.

10. Elastic Supply means there is no fixed protocol supply for the Chainflip ($FLIP) token. There is minting and burning based on the swap fees so the more swaps that occur, the more $FLIP tokens are burned.

3 Pillars of Chainflip:

Chainflip contributors work to three goals:

1. Improve the Security of the network, via Validator auctions, rotating validators, and using Multi-Party Computation (MPC, also known as TSS) to govern high-threshold multi-signature wallets (100/150).

2. Improve the Liquidity of the network, via Total Value Locked (TVL) by having $USDC as a common base pair and active market makers provide liquidity to help improve the liquidity and swap rates.

3. Improve the Volume of the network, via Swap UX (lower slippage for swaps) or wallet/exchange Integrations (Quotes Endpoint, Dev UX, Business Development)

Chainflip

Building on the foundation of liquidity pools, Chainflip pursues the important financial primitive:

1. Allow a user to Swap {Asset X on Chain A}, to {Asset Y on Chain B}.

Chainflip Nodes

Chainflip validators service the Chainflip network. Chainflip is a consensus-driven software that relies on a quorum of Validator nodes. To manage wallets, Chainflip uses Multi-Party Computation (MPC) (also known as TSS) to govern high-threshold multi-signature wallets (100/150) operated through the permissionless Validator network. The network requires a constant supermajority to function, and can safely operate so long as an honest superminority remains, which is guaranteed through strong economic security. The State Chain defines the AMM and accounting ruleset, and the Validator Software manages individual shares of the multi-sig wallets owned by the protocol. Node Operators

Developers

Developers build products that integrate with Chainflip, such as wallets, exchanges, and other services. Developers simply need to connect to the Javascript SDK and API bundles, but they should also consider running their own nodes to increase the resilience, decentralization, and security of the network.

CONTRIBUTING

Chainflip is a public project. If you want to join the community join the Discord.

For more information and a complete guide to Chainflip please refer to the Gitbook.