Chainflip Q3 Recap
The time has come to take a closer look at Chainflip’s progress over the past quarter. From exciting new product and protocol upgrades to fresh faces in the community, and even a few industry firsts—there’s a lot to dive into!
Protocol Performance
In Q3, Chainflip facilitated $206.25 million in swap volume, a growth of 8.17% from Q2’s $190.67 million. The number of swaps increased significantly by 37.71%, rising from 12,085 in Q2 to 16,642 in Q3.
Several key drivers contributed to this growth
Asset Distribution Still Focused on BTC
Our asset distribution remains heavily concentrated on BTC, which accounted for 52.7% of all swaps this quarter, as seen in our recent data. This continued dominance reflects BTC’s central role in cross-chain swaps and highlights user demand for native Bitcoin swaps.
Liquidity Provider Growth
We continue to see strong growth in liquidity provision:
- New Liquidity Provider Accounts: 52 new active accounts were onboarded in Q3, contributing to increased liquidity depth.
- Total TVL from Liquidity Providers: Our total TVL in liquidity provision reached $14,849,116, and continues to grow, further enhancing capital efficiency and liquidity availability.
A key driver of this liquidity increase from retail liquidity providers is the release of Boost. This feature has gained significant traction by allowing LPs to passively provide native BTC liquidity and earn competitive yields.
You can provide Boost Liquidity here
In addition to Boost, high yields for retail LPs actively market-making have fuelled further growth. Retail LPs have enjoyed returns nearing 50% through active market-making strategies. We’ve worked closely with the community to simplify the onboarding process for LPs, making it easier for them to take advantage of these high yields.
If you’re interested in participating, our community-run Liquidity Provision Group is available to help guide you through the process of getting started.
Chainflip Liquidity Provisioning
Solana and Fill or Kill Launches
The ability to perform direct swaps between Bitcoin and Solana marks a significant advancement in cross-chain interoperability, offering users a seamless and secure swap experience, which whilst recent (the end of September), has definitely set the stage for future growth of Chainflip. There is still the need for the integration to come fully in effect which should be very revealed in Q4.
More details on this integration can be found here:
Shaun Janse van Vuuren
Additionally, we introduced Fill or Kill (FoK) orders, which ensure that users receive full execution at the specified price or the swap is refunded, providing greater certainty for the user on price execution and therefore more confidence to trade, and to trade in size.
Broker Performance
Broker fees saw a 24.51% decrease in Q3, dropping from $150,719 in Q2 to $113,783 in Q3. This decline can be attributed to a shift in volume, with more swaps happening directly through Chainflip rather than via integrators.
One contributing factor has been the addition of new markets for Chainflip, diluting the competitiveness of pricing on certain pairs for a short period of time, in addition to other liquidity shortages that happened. The liquidity conditions have since improved and are increasing again with several professional and retail LPs stepping in.
Broker fees continue to represent direct revenue for integrators within the Chainflip ecosystem. As we expand and improve our protocol, these fees will remain an important source of income for integrators. We are committed to fostering and strengthening these relationships to maximise value for both existing and new partners.
If you’re interested in becoming an integrator and tapping into this revenue stream, Contact Us to learn more about how you can get involved.
What’s Coming in Q4?
Pricing Optimisation
Pricing remains a focus area, and we plan to address this by launching DCA (Dollar Cost Averaging) functionality. This will enable Chainflip to offer some of the most competitive pricing in the market. Additionally, we are ensuring full integration of all our features across the leading aggregators for a comprehensive suite of services.
Squid Router Integration
This coming quarter, we’re excited to launch our integration with Squid Router, bringing native $BTC and $SOL to all Squid routes—both on our platform and theirs. This long-awaited integration is set to unlock new opportunities, and we’re eager to see its impact on the broader DeFi ecosystem.
Further Ecosystem Integration
With the recent Solana integration, we now have the opportunity to explore deeper connections within this ecosystem. Expect more integration efforts within Solana, aimed at driving swap volume and capitalising on this new growth area.
With our major technical upgrades and upcoming integrations, we’re anticipating a significant surge in volume on Chainflip. This increase in activity will naturally drive higher LP fees, attracting even more liquidity providers to join. We’re also ramping up efforts to bring more LPs on board, and with the potential to earn three-digit APYs, there’s never been a better time to get involved!