That man is back! We're going to finance a billion dollars this time
When everyone thoughtAndre CronjeHaving already faded out of the crypto world, the legendary figure known as the “father of DeFi” is back.
This time he brought a brand new project --Flying TulipToday, it was announced that it has completed a $200 million financing and plans to launch a public token sale (Public Sale).
What's more special is that this public offering comes with a mechanism that has never been seen before: users can destroy tokens and recover their principal at any time. This means that participants have a “bottom line protection” for downside risks, and there is still no upper limit on upward returns.
Who is Andre Cronje?
If you experienced the DeFi summer in 2020, you've definitely heard his name.
Andre Cronje isYearn Finance(YFI)The founder of — a legendary developer who sparked the DeFi craze with just code. YFI was once hailed as the “fairest token” because he didn't set aside any shares for himself at the time.
But after several project hits, community disputes, and security incidents, Cronje faded out of the public eye in 2022. To this day, he “went back to the mountains” with his Flying Tulip.
What is a Flying Tulip?
Editor's interpretation:“Flying Tulip” literally means “flying tulip.” The tulip is the most famous bubble symbol in financial history (the 17th-century “tulip frenzy” was the earliest speculative bubble).
Cronje named the project Flying Tulip, a bit self-deprecating and a bit declarative: the crypto world may be like a tulip, but this time, he wants it to really “fly.” In other words, Flying Tulip wants to make what in the past represented a “bubble” more stable, more realistic, and more vibrant through on-chain mechanisms.
From the official documentation, Flying Tulip wants to build aFull chain financial platformIt puts many of the features that crypto users are familiar with — stablecoins, lending, spot trading, derivatives, options, and insurance — in one system.
Simply put, it wants to be a “one-stop DeFi platform” where users can:
Earn money by depositing coins;
Borrow money as leverage;
Go long and short;
Even hedge risk through on-chain insurance.
And all of this is done in a unified account system, and there is no need to switch frequently between different platforms.
A “refundable” public offering of tokens
The one that caught the eye the most this time was Flying Tulip's“Onchain Redemption Right (Onchain Redemption Right)”。
Traditionally, once users participate in a public token sale (Public Sale), their money is locked up regardless of whether the currency price rises or falls.
But Flying Tulip provides a “programmatic redemption” mechanism —
All participants can destroy their $FT tokens at any time to get back their invested capital (such as ETH).
The system automatically returns funds from a separate on-chain reserve pool.
This design is a bit like aOn-chain insurance mechanismThis not only guarantees that investors will not “lose money to the end”, but also preserves room for growth.
However, it should be noted that the government also reminds that this is not a “guaranteed return” or “deposit insurance” — the size of the reserve pool is limited, and whether the right of redemption can be executed depends on whether the funds in the pool are sufficient.
Money Is Not Locked Up: Using Profit to Feed Back Growth
Cronje mentioned in the roadshow materials shown to investors that this design seems to make the funds unusable, but in reality Flying Tulip plans to invest this money into an on-chain revenue strategy, such asAave、Ethena, SparkOther mainstream DeFi protocols.
Their goal is to achieve an annualized return of around 4%.
Based on the plan's funding limit of $1 billion, it will generate approximately $40 million in interest income each year.
The proceeds will be used to:
payment agreement incentives;
Repurchase $FT tokens;
Support ecological growth and marketing.
Cronje described it in the investor materials: “We use circular returns to drive growth and incentives, and use permanent bearish rights to protect the downside of investors while retaining the token's unlimited upward potential — this forms a self-reinforcing growth flywheel (self-reinforcing growth flywheel).”
The team has no reserved shares
Another highlight is the Flying Tulip teamThere are no initial token allocations。
All of their revenue comes from the real benefits of the project, and they use this revenue to go to the marketRepurchase $FT tokens, and released in accordance with the public plan.
In other words, the team will only be rewarded if the agreement actually makes money and users actually use it.
This puts the team and investors in the same boat — the more popular the project, the more money they make.
Luxurious capital lineup with a target of $1 billion in financing
The Flying Tulip has been completed$200 million private equity financingInvestors include:
Brevan Howard Digital
CoinFund
DWF Labs
FalconX
Hypersphere
Nascent
Republic Digital
Susquehanna Crypto et al.
Next, they will launch a public offering on multiple chains simultaneously.Target total funding of up to $1 billion。
summed
The advent of Flying Tulip is reminiscent of the “code changes finance” era in 2020.
The difference is that this time around, Andre Cronje wanted to do more than innovate products, but make DeFi more credible and sustainable. Today, after DeFi experienced a bear reshuffle and trust collapse, Cronje's return may not only be a developer's comeback, but also a sign: a new DeFi cycle is expected to be reignited.
Author: Bootly
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