Running a Broker

The Chainflip Broker API Bundle allows SDK users to run their own State Chain interface.

A Broker, in the context of the Chainflip protocol, is an entity that facilitates the process of initiating a swap on behalf of end users via Request Deposit Address. They provide an endpoint to interact with the State Chain, reducing the complexity of transactions and lowering gas fees.

How Brokers work

1. Any State Chain account can act as a Broker, submitting Deposit Channel Requests extrinsics, simplifying the user experience and reducing gas fees.
2. Brokers take swap intent and return the extrinsic hash, once a Deposit Channel on the State Chain is opened for the user. The Deposit Channel can then be verified before a deposit is made.
3. Brokers pay a small transaction fee in $FLIP for each extrinsic they submit, which is then burned. This is to avoid spam prevention and for network integrity reasons.

Optionally, Brokers can choose to charge a fee for the use of their endpoint, to offset the costs they incur for facilitating transactions.

Earning Fees as a Broker

Broker operators can choose to charge a fee for the use of their endpoint. The fee is denominated in basis points, where a basis point is defined as 1/100th of a percentile and limited to 1000 basis points (equivalent to 10%). This fee is taken in the deposit asset and credited to the broker's account.

If you are a developer of wallets, aggregators or DEXes, you can earn revenue by bringing volume to Chainflip's ecosystem and offset the costs of running a Broker.