Flying Tulip (FT), the new decentralized finance project from veteran developer Andre Cronje, will open its public token sale tomorrow. The sale is open to all users and has a maximum deposit cap of $1 billion.
Cronje has clarified that the project is not raising $1 billion in the traditional startup sense. Instead, user deposits are capped at that level and deployed into low-risk yield strategies. At present, all funds are allocated to Aave, with diversification expected later.
Users can withdraw their original deposit at any time, while the protocol keeps the yield generated from those funds.
FT Price Floor and Redemption Model
The FT token is priced at $0.10, implying a fully diluted valuation of around $1 billion. What makes the structure stand out is its built-in redemption model.
If the token trades above $0.10 on the open market, holders can sell and take profit. If it trades below $0.10, users can redeem directly through the protocol at the fixed floor price. This creates a structural price floor backed by deployed capital.
If market prices fall under the floor, reserve collateral is used programmatically to buy back FT tokens and restore stability. The design aims to provide downside protection while still allowing upside if token demand increases.
TVL Growth and Yield Activity
Even before full token transferability, Flying Tulip is already active. On-chain dashboards show more than $126 million in total value locked (TVL), with over $85,000 in cumulative yield generated so far.
The early activity highlights that the protocol is earning revenue from deployed capital rather than relying only on speculative token trading. By allocating deposits to Aave, the project is generating yield from established DeFi lending markets.
Revenue Model and Token Buybacks
Flying Tulip does not charge traditional platform fees. Instead, it captures the yield earned from user deposits. That revenue is used to buy back FT tokens from the market and distribute them to users.
According to Cronje, distributing a volatile token can carry risk. However, he argues that the $0.10 redemption floor provides a minimum exit value. This structure attempts to combine stable yield generation with token appreciation potential and ongoing buyback support.
ftUSD Launch and Multi-Chain Expansion
The first product is ftUSD, a native stablecoin that initially works as a USDC wrapper deployed into Aave. Over time, the protocol plans to introduce more advanced, delta-neutral yield strategies targeting returns between 4% and 8% on stablecoin deposits.
Margin lending is also part of the roadmap, using margin equity instead of traditional loan-to-value ratios. Spot trading, leveraged positions, and additional derivatives products are planned as the ecosystem develops.
Flying Tulip is launching across Ethereum, Sonic, BNB Chain, Avalanche, and Base, with further blockchain expansion under review.
Overall, the project represents a different approach to DeFi token launches. By combining capital protection, yield farming, token buybacks, and multi-chain deployment, Flying Tulip is introducing a structured model that blends downside protection with growth-focused token economics.
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