What is Flying Tulip?

Flying Tulip is a decentralized finance (DeFi) protocol that integrates spot trading, perpetual contracts, lending markets, options, and structured yield products on-chain. It operates with a fixed-supply token called FT, capped at 10 billion units, where each $1 of raised collateral issues 10 FT tokens without inflation. The protocol deploys capital into yield-generating DeFi strategies such as lending, borrowing, staking, and funding rates, using generated yields to buy back and burn FT tokens.

A core element is the delta-neutral stablecoin ftUSD, which maintains a $1 peg through hedged exposures and serves as a base layer for composable financial applications, addressing issues of capital fragmentation and inefficiency in traditional DeFi setups.The system's mechanics include an adaptive automated market maker (AMM) paired with a central limit order book (CLOB) for trading execution, adjusting curves based on volatility for optimal pricing. Lending features slippage-aware loan-to-value ratios and dynamic borrow caps to manage risk without external oracles.

Perpetual contracts settle using internal exchange data to avoid dependencies, while all fees and revenues from total value locked (TVL) flow into FT buybacks.