Introduction to Brokers
The Chainflip Broker API Bundle allows 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
- Any State Chain account can register as a Broker, and start submitting Deposit Channel Request extrinsics on users' behalf.
- Once a Deposit Channel is opened, a hash is returned and it can be verified using Chainflip's Explorer (opens in a new tab).
- Brokers must pay a small transaction fee in $FLIP for each extrinsic they submit and a "Channel Fee". This is to avoid spam and for network integrity reasons. The suggested amount to fund the State Chain account is 10 $FLIP.
The cost Brokers pay to open Deposit Channels is very cheap. See the $FLIP balance from Chainflip's Broker (opens in a new tab) — used to power our Swapping app.
Learn more in the Brokers section.
How Brokers earn fees
Broker operators can choose to charge a fee for the use of their endpoint. This 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 from the deposit asset amount and credited to the Broker's account.
Learn how to withdraw your collected fees here.
If you are a developer of wallets, aggregators or DEXes, you can earn revenue by bringing volume to Chainflip's ecosystem.