Chainflip: Native Cross-Chain Swaps

Chainflip is a decentralized cross-chain DEX that lets users swap between native BTC, ETH, USDC, USDT, DOT, and SOL without wrapping. No bridge deposit, no wrapped token, no manual claim on the other side.

How swaps work

1. User deposits BTC to a Chainflip-generated address.
2. Chainflip validators (via TSS multisig) observe deposit.
3. Just-In-Time liquidity market makers quote in Chainflip's onchain orderbook.
4. Best quote executes.
5. Validators (via TSS) sign a transfer of ETH from the JIT market maker's balance to the user's ETH address.

TSS validators

Threshold Signature Scheme: 150+ validators collectively control the chain's multisig accounts on every supported network. No single validator can withdraw funds. Slashing enforces honest behavior.

Why native matters

• User never holds a wrapped token.
• No bridge contract to hack.
• Deposits on BTC or SOL work natively.

JIT liquidity

Market makers post orders that fill deposits in real time. Because liquidity is not locked in a pool, capital efficiency is high. Makers hedge on CEXs.

Where Chainflip fits

• Users who want BTC-to-native-ETH or SOL-to-native-BTC without wrapping.
• Long-tail cross-chain flows where wrapped tokens don't exist.
• Sophisticated users trading OTC-style through the JIT book.

Trade-offs

• Validator TSS set is a real security surface (2/3+ collusion required to steal).
• Younger protocol; smaller volume than wrapped BTC on Ethereum.
• JIT liquidity thinner for exotic pairs.