Chainflip Launches FLIP Token and Thunderhead World Liquidity Staking Service
In Brief
Chainflip launched FLIP token and Thunderhead World liquidity staking service, to stake FLIP and earn rewards without running nodes.
Cross-chain trading platform Chainflip, announced the official launch of new FLIP token and Thunderhead World liquidity staking service, allowing users to stake FLIP and earn rewards without running their own nodes.
The FLIP token is the ERC-20 protocol token of the Chainflip decentralized exchange. Staking is done on the Ethereum State Chain Gateway contract, loading tokens onto the Chainflip State Chain for use in the appchain environment.
The FLIP token can be traded on Uniswap and is listed on major exchange platforms, including Bybit, KuCoin, Gate.io and Crypto.com.
The Utility of FLIP Token
The FLIP token serves as collateral for Validator auctions, where Validators with large stakes, earn rewards from the block reward and maintain the state chain for Chainflip by controlling the liquidity vaults.
The rewards earned by Validators are offset by the decentralized exchange (DEX) automatically converting network fees collected in USD into FLIP and subsequently automatically burning it within the protocol. This process is done without the user having to purchase FLIP tokens. Consequently, holding FLIP can be advantageous even if the user does not use the token for staking.
FLIP is essential for Liquidity Provision and Relaying services, in order to facilitate the processing of instructions on the decentralized exchange. Additionally, all transaction fees on the State Chain are systematically burned.
Launched in mid-2023, a decentralized cross-chain decentralized exchange Chainflip utilizes threshold signature schemes, its own blockchain and a purpose-built automated market maker (AMM) that enables native cross-chain swaps. It provides users with access to native assets from different ecosystems including Ethereum, Polkadot and Solana among others.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
