Chainflip on Polkadot: Native Cross-Chain Swaps with JIT AMM & FROST Security
Chainflip is a decentralized cross-chain swap network built around a Substrate “State Chain,” a 150-validator MPC/TSS custody model, and a Just-In-Time (JIT) AMM. In July 2025, Chainflip shipped an integration with Polkadot Asset Hub, enabling one-click native swaps between Polkadot-native assets and BTC/ETH/USDC/SOL via wallets like SubWallet—without wrapped tokens.
ELI5: Chainflip in one minute
- Imagine a robotic cashier that speaks Bitcoin, Ethereum, Solana, and Polkadot natively.
- A validator swarm collectively holds vault keys using cryptography called MPC/TSS, so no single party can move funds alone.
- Prices are set by a JIT AMM running on Chainflip’s own blockchain (the State Chain), which coordinates every swap.
- In July 2025, Chainflip integrated Polkadot Asset Hub, so you can do one-click swaps between Polkadot-native assets and BTC/ETH/USDC via supported wallets like SubWallet—no wraps, no bridges.
How Chainflip works
State Chain (Substrate appchain)
The State Chain is Chainflip’s application-specific blockchain, built with Substrate. It records protocol events (deposits, swaps, vault rotations, governance) and runs the AMM logic. Think of it as the accounting & coordination layer for cross-chain settlement.
Validators, MPC/TSS & FROST
- Chainflip runs a permissionless network of up to 150 validators. They collectively manage vault keys via MPC/TSS—no central custodian.
- Chainflip employs FROST (Flexible Round-Optimized Schnorr Threshold) for fast, scalable threshold signatures (e.g., “100-of-150” signing), enabling quick egress transactions and simpler vault management.
JIT AMM & pricing
- The Just-In-Time AMM is implemented on the State Chain (Rust/Substrate), drawing inspiration from concentrated-liquidity designs while adapting them for cross-chain operations. LPs can place range liquidity; execution is optimized for accurate pricing and minimal slippage across L1 assets.
Why this matters for Polkadot
Polkadot’s Asset Hub concentrates native assets and fee-payment features for the ecosystem. Chainflip’s Asset Hub integration lets users swap directly between Polkadot-native assets (e.g., hubUSDC) and external L1 assets (BTC/ETH/USDC/SOL)—removing wrapper risk and fragmentation, and easing capital in/out flows for users and DAOs. One-click routes in popular wallets simplify UX for non-experts while preserving native settlement.
Key features & benefits
- Native L1 ↔ L1 swaps (e.g., BTC ↔ DOT/hubUSDC) without wrappers or centralized custody.
- Security by design: threshold signatures (FROST) and distributed validators securing shared vaults across chains.
- Pricing quality: JIT AMM on the State Chain focuses on capital efficiency and tight execution, aiming to rival CEX-like pricing.
- Composability: SDKs and integrations with wallets/aggregators, including SubWallet and other routers.
- Governance & upgradability: protocol evolution managed on the State Chain (validator auctions, vault rotations, parameter updates).
Chainflip vs alternatives
| Protocol | Settlement model | BTC L1 support | Polkadot integration | Execution model | Who runs it | Notes |
|---|---|---|---|---|---|---|
| Chainflip | Native L1↔L1 swaps via MPC/TSS vaults + Substrate State Chain | Yes | Yes (Asset Hub; wallet one-click) | JIT AMM on State Chain | ~150 validators (PoS) | FROST TSS; SDKs & wallet/aggregator integrations. |
| THORChain | Native L1↔L1 swaps via TSS vaults on a dedicated chain | Yes | Not native to Polkadot | Continuous liquidity pools (CLP) | Node operators (PoS) | Pioneer of native cross-chain swaps; widely used BTC routes. |
| UniswapX | Intents + third-party fillers; often routes via bridges/DEXs | Limited/varies (not native BTC L1) | Not specific | Dutch-auction intents; gasless for swappers | Open filler network | Useful for EVM-centric intents and aggregation. |
| LI.FI | Aggregator of bridges/DEXs; smart routing | Via connected bridges (not native) | Not specific | Aggregation & solver routing | Aggregator + partners | SDK/API across many chains; strong bridge coverage. |
Table intent: decide when native L1 settlement (Chainflip/THORChain) is preferable vs intents/aggregation (UniswapX/LI.FI).
Step-by-step: BTC → hubUSDC (Asset Hub) in SubWallet
Interfaces evolve—always follow the latest wallet prompts.
- Open SubWallet and choose Swap / Cross-Chain. Select From: BTC (Bitcoin) and To: hubUSDC (Polkadot Asset Hub).
- Enter amount and review the quoted price/fees (Chainflip route).
- Generate deposit instructions (a BTC address controlled by Chainflip’s TSS vaults).
- Send BTC from your Bitcoin wallet to the provided address. Wait for BTC confirmations.
- Once confirmed and executed by Chainflip, hubUSDC credits to your Asset Hub account in SubWallet—no wrapped assets.
- Optional: swap hubUSDC → DOT using Asset Hub conversion flows or a supported DEX route.
Common pitfalls & pro tips
- Confirm the destination chain & address format (e.g., Polkadot SS58 vs EVM). A wrong address equals loss of funds.
- Observe minimum confirmations on the source chain (BTC takes time). Faster chains ≠ instant settlement.
- Mind gas on both sides. You may need a small balance of DOT for fees on Asset Hub, or use fee-payment features if supported.
- No wrappers ≠ no risk. MPC/TSS reduces single-custodian risk but still relies on validator set security and protocol correctness. Review security assumptions and validator incentives.
- Liquidity depth matters. Large clips can move price; consider splitting orders or monitoring pool depth and JIT ranges.
- UX differs by wallet/aggregator. One-click flows abstract steps; other UIs may require manual confirmations.
FAQs
1) How is Chainflip different from a bridge? Bridges usually lock & mint representations on a destination chain. Chainflip executes native L1 swaps via MPC/TSS vaults and its State Chain—no wrapped tokens needed.
2) Does Chainflip support native BTC swaps into Polkadot? Yes. The Asset Hub integration (July 30, 2025) enabled one-click swaps between Polkadot-native assets and BTC/ETH/USDC via supported wallets.
3) Who secures funds during a swap? A permissionless validator set (up to ~150) collectively controls vaults using FROST threshold signatures; no single operator can move funds.
4) What is the State Chain used for? It’s the coordination & accounting chain (Substrate appchain) that tracks deposits, executes the JIT AMM, manages vault rotations, and handles governance for Chainflip.
5) How good is pricing? Where does it come from? Pricing emerges from liquidity provided to the JIT AMM (range liquidity) plus arbitrage with external markets via integrators, aiming for low slippage and tight quotes.
6) Can integrators plug Chainflip into wallets/DEXs? Yes—Chainflip ships SDKs and has growing wallet/aggregator integrations, including SubWallet and third-party routers.
7) Is KYC required? Swapping is on-chain and permissionless; some purchase flows market no KYC. Your wallet and local rules still apply.
8) Is this investment advice? No—this guide is educational. Chain parameters, liquidity, and pricing can change; do your own research.
Conclusion
Chainflip brings bridge-free, native L1 swapping to Polkadot with production-grade security (MPC/TSS + FROST), a Substrate State Chain, and a JIT AMM optimized for execution quality. For users, that means simpler in/out flows (BTC/ETH/USDC ↔ Asset Hub). For integrators, it’s a turnkey backend to add native cross-chain routes to wallets and apps.