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Flying Tulip launches fundraising push for a Sonic-native DEX
Flying Tulip, a new on-chain trading platform founded by Sonic Labs co-founder Andre Cronje, has kicked off its first public capital raise to support platform launch and growth. In an Aug. 14 post on X, Cronje invited U.S.-based funds to contact the team, signaling the project’s move into a formal fundraising phase.
Built on Sonic (S) layer-1 with centralized-exchange performance goals
The platform is being developed entirely on the Sonic (S) layer-1 blockchain and aims to deliver a high-performance decentralized exchange (DEX) experience. Flying Tulip’s architecture emphasizes trading liquidity and capital efficiency: a synthetic delta-neutral pool backed by staking yield enables spot and perpetual trading, lending, and options. With adaptive liquidity and leverage options reportedly up to 1000x, the team says the protocol is engineered for performance that approaches centralized exchanges while staying non-custodial.
Adaptive curve AMM and capital efficiency
Flying Tulip’s adaptive curve automated market maker (AMM) can switch between pricing models depending on market volatility. This dynamic approach is designed to provide tighter spreads for traders and higher returns for liquidity providers by reducing impermanent loss and improving capital efficiency.
Key product features
The platform will also include non-custodial wallets so users retain private keys, dynamic loan-to-value (LTV) ratios to lower liquidation risk, and hybrid compliance features such as tax-reporting tools and OFAC screening. These additions are positioned to make the DEX competitive with centralized peers on usability and regulatory hygiene.
Tokenomics, use of funds and investor protections
Cronje outlined that raised capital will support Flying Tulip’s yield strategies. Only the yield generated will be allocated to marketing, token liquidity, launchpad incentives, and buybacks. The native token, FT, will have a fixed supply split evenly between investors and the foundation, with no inflationary or incentive-driven issuance.
Perpetual buyback right and launch caution
FT holders will reportedly have a perpetual right to sell tokens back at the original investment rate denominated in BTC, ETH, SOL, USDC, Ethena USDe (USDE), USDS, or ftUSD. The FT token has not yet launched; the team warned users to beware of scams impersonating the project.
Market positioning and risks
Community reaction has been optimistic, with some comparing Flying Tulip to a decentralized version of GMX or Binance but without centralized custody risks. A core dependency for success will be resilient, accurate oracles delivering real-time price and volatility feeds. Oracle failures or manipulation could materially impact leveraged products, delta-neutral strategies, and lending markets.
Overall, Flying Tulip aims to blend advanced AMM mechanics, deep liquidity, and compliance tooling to attract traders and liquidity providers seeking an on-chain alternative to centralized exchanges. As fundraising continues, attention will focus on security audits, oracle design, and the precise deployment timeline for the FT token and platform features.
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