Affiliate Brokers
Affiliate Brokers are regular Chainflip accounts with the Broker role, without having set up a Chainflip node and Broker API bundles, and benefiting from the operation of regular Brokers.
These type of Brokers don't create deposit channels themselves, however, they still collect fees as "affiliates".
This feature allows "affiliates" to request Swap Deposit Channels through a Broker API providers, in exchange for a share of commission.
How it works
When a Broker, running the Broker API bundle, opens a Swap Deposit Channel, they can optionally specify a list of up to five (5) additional Affiliate Brokers, in addition to their own commission.
This commission can be set at the time of deposit channel creation, which provides additional flexibility. Each affiliate receives their share out of all deposits made (and confirmed) while the deposit channel is open.
Affiliate Brokers are still Broker accounts and so they must exist and be registered as Broker accounts.
See the API documentation to learn more about deposit channel management.
Example
In the first example, Broker #1 and Broker #2 are two different Chainflip accounts with the Broker role, separately running the Broker API bundle, and opening Swap Deposit Channels on behalf of users, collecting 100bps in fees for each deposit made.
With Affiliate Brokers, Broker #1 is now able to run the Broker API and open Swap Deposit Channels with Broker #2 as the beneficiary, each collecting 50bps in fees for each deposit made.
Brokers are able to set different affiliates and commission splits on a per channel basis.
Considerations
- Affiliate Brokers must already exist and be registered as Brokers
- Affiliate Brokers can claim their accrued commissions through the regular Broker flow
- Affiliate Brokers are, technically, regular Brokers and so they can also run the Broker API and act as such at the same time