Sonic Labs Co-Founder Secures Funding for Flying Tulip—The Next-Gen On-Chain Trading Platform Set to Disrupt Crypto Markets

Breaking the mold of traditional exchanges, Flying Tulip emerges as a fully on-chain trading platform—backed by Sonic Labs' pedigree and fresh capital infusion.

Why it matters: In a market saturated with 'trust us' centralized exchanges, Flying Tulip's transparent on-chain architecture could be the antidote to shady order books and phantom liquidity.

The twist: While Wall Street struggles to tokenize paper gold, crypto natives are busy rebuilding finance from the blockchain up—with zero patience for legacy gatekeepers.

Bottom line: Another day, another trading platform. But this one might actually let you verify the trades—imagine that.

Use of funds and token model

Cronje explained that the funds raised will go toward Flying Tulip’s yield strategies and that only the yield will be utilized for marketing, token liquidity, launchpad incentives, and buybacks. The project’s native token, FT, will have a fixed supply split evenly between investors and the foundation, with no inflation or incentive-based issuance. 

Holders will have a perpetual right to sell tokens back at the original investment rate in Bitcoin (BTC), Ethereum (ETH), Solana (SOL), USD Coin (USDC), Ethena USDe (USDE), USDS, or ftUSD. The FT token has not yet launched, and the team warned against scams using its name.

Market ambition and competetive edge

Flying Tulip’s adaptive curve AMM switches between two pricing models based on market volatility, giving traders better prices and increasing returns for liquidity providers.

Other features include non-custodial wallets for user control, dynamic loan-to-value ratios to reduce liquidation risks, and hybrid compliance features like tax reporting and Office of Foreign Assets Control screening.

The community has responded with a great deal of optimism, with many comparing Flying Tulip’s goals to a decentralized version of GMX and Binance, one that does not have the centralized custody risks. However, its reliance on accurate and resilient oracles for real-time pricing and volatility data will be a critical factor for its success.