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When everyone thinksAndre CronjeWhen it faded out of the crypto circle, the legend, known as the “Father of DeFi”, is back.This time he brings a brand new project-Flying Tulip, announced today that it has completed a US$200 million financing and plans to start public offering of tokens (Public Sale).
What’s more special is that this public offering comes with an unprecedented mechanism: users can destroy tokens and get back their principal at any time.This means that the downside risks of participants are protected by “bottom line”, while the upside returns are still not limited.
Who is Andre Cronje?
If you’ve experienced DeFi summer in 2020, you’ve definitely heard his name.
Andre Cronje YesYearn Finance(YFI)The founder of , a legendary developer who set off a DeFi craze by relying solely on code.YFI was once hailed as the “fairest token” because he did not reserve any share for himself at the time.
But after several project hits, community strife and safety accidents, Cronje faded out of the public eye in 2022.Until today, he took Flying Tulip to “come out again”.
What is Flying Tulip?
Editor’s interpretation:“Flying Tulip” literally means “flying tulip”.Tulips are the most famous bubble symbol in financial history (the “tulip fanaticism” in the 17th century was the earliest speculative bubble).
Cronje named the project Flying Tulip, which is a bit self-deprecating and a bit of a declaration: the crypto world may be like a tulip, but this time, he wants to make it really “fly”.In other words, Flying Tulip wants to make things that represent “bubble” in the past become more stable, more realistic and more vital through the on-chain mechanism.
From the official documentation, Flying Tulip hopes to create aFinancial platform on the entire chain, put many functions familiar to crypto users – stablecoins, lending, spot trading, derivatives, options, insurance – in one system.
Simply put, it wants to be a “one-stop DeFi platform” so that users can:
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Save coins to earn profits;
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Borrow coins for leverage;
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Go long and short;
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Even hedge risks through on-chain insurance.
These are all done in a unified account system and do not require frequent switching between different platforms.
A public token offering that can refund money
The most eye-catching thing this time is Flying Tulip“Onchain Redemption Right”.
Traditionally, once a user participates in the public offering of tokens, the money will be locked regardless of the price of the coin.But Flying Tulip provides a “programmed redemption” mechanism-All participants can destroy the $FT tokens in their hands at any time and retrieve their principal (such as ETH).
The system will automatically return funds from a separate on-chain reserve pool.This design is a bit like aOn-chain insurance mechanism, which not only ensures that investors will not lose to the end, but also retains room for growth.
However, it should be noted that the official also reminds that this is not “guaranteed return on capital” or “deposit insurance” – the scale of the reserve pool is limited, and whether the redemption right can be implemented depends on whether the funds in the pool are sufficient.
Funds are not locked: Feedback to growth with returns
In the roadshow material presented to investors, Cronje mentioned that this design seems to make the funds unusable, but in fact, Flying Tulip plans to invest the funds in on-chain earnings strategies, such asAave,EthenaSparketc.
Their goal is to achieve an annualized rate of return of about 4%.According to the planned financing cap of $1 billion, approximately $40 million in interest income will be generated each year.
This proceeds will be used for:
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Payment agreement incentives;
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Repurchase $FT tokens;
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Support ecological growth and marketing promotion.
Cronje described it in the investor material: “We use circular returns to drive growth and incentives, protect investors’ downward trend with permanent puts, while retaining the potential of tokens to rise unlimitedly – this forms a self-reinforcing growth flywheel.”
The team has no reserved shares
Another highlight is the Flying Tulip teamNo initial token allocation.All their income comes from the real income of the project, and use this income to the marketRepurchase $FT tokensand released according to the public plan.
In other words, the team can only get rewards when the agreement is really profitable and the user is really using it.This puts the team on the same boat as the investors – the more popular the project is, the more they make.
Target $1 billion in financing
Flying Tulip has been completed$200 million private equity financing, investors include: Brevan Howard Digital, CoinFund, DWF Labs, FalconX, Hypersphere, Nascent, Republic Digital, Susquehanna Crypto, etc.
Next, they will start public offerings on multiple chains at the same time.Target total financing up to US$1 billion.
Summarize
The emergence of Flying Tulip reminds people of the era when “code changes finance” in 2020.The difference is that this time Andre Cronje wants to do not just innovative products, but to make DeFi more trustworthy and sustainable.Today, after DeFi has experienced a bear market reshuffle and a collapse in trust, Cronje’s return may not only be a comeback of a developer, but also a signal: a new DeFi cycle is expected to be reignited.
