Chainflip: The Optimal Cross Chain Exchange Beyond Shapeshift
Jun 19, 2021 13:03 UTC
Jun 19, 2021 at 13:07 UTC
The crypto space continues to grow and many DEXes and trading protocols have emerged to
find solutions to new and ever changing use cases. However one persistent and unresolved
issue has been haunting the space since other blockchains came around after Bitcoin: swaps of
assets from different blockchains.
Right now, the industry is in a state of rapid innovation, with new applications being built on top
of growing blockchain ecosystems almost every week, users are struggling to find a
less-complex and efficient way to hop from one blockchain to the other.
Shapeshift, an instant crypto exchange where users could quickly and seamlessly trade cryptos
across various chains, was the first product albeit centralized that triggered the need for cross
chain solutions. It offered users an easy way to trade any crypto without needing to leave their
wallet or log into brokers/exchanges.
That’s where Chainflip jumps in and saves the day – it’s a one-stop-shop powerhouse DeFi
cross-chain swapping protocol that puts the icing on the cake. It’s the Hulk in the DEX
ecosystem and a force to be reckoned with, providing crypto users everywhere with attractive
alternatives for trading.
Chainflip is unique in that it maintains the simplicity of Shapeshift but takes things a step further.
Similar to Uniswap and other DEXes, Chainflip is a completely decentralized and permissionless
AMM (automated market maker). However, where it truly differentiates itself is that it allows for
cross-chain swapping in the simplest and easiest way possible.
It runs on the State Chain, it’s own proof-of-stake blockchain that was built using substrate – the
chain will connect to Polkadot as the gateway to expand across other crypto blockchains,
helping power the network.
$FLIP is the protocol’s governance token which helps run and secure the network. Fees
incurred from swaps are used to purchase and burn FLIP tokens in Chainflip’s AMM. $FLIP was
created to be an ERC-20 token but is compatible across other chains, expanding its use case
Protocol Features & Benefits
Now that you have a basic overview of what Chainflip is all about, let’s explore what gives them
an edge over other products on the market today.
Users can swap native assets across different chains without any special software, custom
wallets, collateral, wrapped tokens, or pre-deposits. This eliminates many of the inconveniences
presented by other DEXes, minimizing the amount of preparations required before trading.
Everything stays right on the protocol, so users don’t need to move across blockchains and
wallets to bridge their assets and pay expensive fees. It solves scalability issues
It also provides a trading feature that has long been desired: native cross-chain swaps. Native
swaps allow users to receive native crypto assets on their main blockchain in one easy step,
eliminating the hassle of utilizing wrapped tokens required on other DEXes – you get the real
crypto asset in your wallet.
The user experience is unmatched and has been a major focus by the team – it’s literally as
simple as it gets. Just enter your receiving wallet address, send your existing coins, then get
your brand new shiny coins – that’s it!
Chainflip’s protocol captures the spirit and essence of what crypto users have always wanted
digital asset trading to look like, while also adapting and tailoring to the emergence of new
blockchains to remain relevant in the space.
It’s the optimal DeFi solution that has the potential to please everyone across the crypto sphere,
simplifying the process so that anyone can quickly and easily be onboarded, without the need to
learn all of the complex technicalities.
To this day, the market has still not developed a true solution for frictionless cross-chain trading.
Barriers to entry are still remaining steady, as DEXes give users a lot of advantages but fail to
attract the massive scope of users who could potentially become crypto customers. This
inspired Chainflip’s team to try and put a stop to all of the inefficiencies that exist today.
The future looks very promising for Chainflip, as it has major plans to continue to grow and
When its platform officially goes live, swaps to the largest blockchains will be made possible.
This will include Bitcoin, Ethereum, Polkadot, Solana, and many more promising chains.
The potential is unlimited, and Chainflip is looking to source tremendous amounts of liquidity
and expand to additional chains to become the dominant player amongst all other DEXes.
If this analysis captures your interest and you want to learn more, make sure to check out
Chainflip and ride the wave with the future of DeFi!