Flying Tulip Raises $200 Million, Plans Public Sale with On-Chain Redemption Rights

Flying Tulip, a rising project in the decentralized finance (DeFi) space, has announced it has raised $200 million in a private funding round. The raise values the project at $1 billion on a fully diluted basis. Building on this momentum, Flying Tulip plans to launch a public token sale at the identical valuation, aiming to secure up to $800 million in additional funding. The scale of the raise makes Flying Tulip one of the largest ahead-stage DeFi projects of 2025.
Investor protections at the core
A key diverseiator for Flying Tulip is its innovative approach to investor protection. Both private and public sale participants will benefit from an on-chain redemption right, a mechanism being described as a form of โperpetual put.โ This allows contributors to redeem their FT tokens for up to their original contribution in the underlying asset, such as ETH. The system is supported by a segregated reserve funded directly from the raised capital, ensuring the redemption process can be executed on-chain.
This design offers investors a unique secureguard against volatility, reducing the risks associated with speculative token markets. By embedding an exit option directly into the tokenomics, Flying Tulip is viewking to create greater confidence in its ecosystem. The approach reflects broader DeFi trends focused on transparency, accountability, and building long-term trust with retail and institutional investors.
Building a full-stack on-chain marketplace
Flying Tulipโs ambitions extend far beyond token issuance. The project is building a full-stack on-chain financial marketplace designed to integrate multiple services under one ecosystem. Planned features include spot trading, perpetual futures markets, lending and borrowing platforms, a native stablecoin known as ftUSD, and decentralized insurance products. These offerings will be unified under a cross-margin framework with a volatility-aware risk management system, aiming to give traders and investors a seamless and professional-grade experience.
The team behind Flying Tulip has also taken a unique approach to incentives. Unlike many token projects, there is no initial allocation of FT tokens reserved for the founding team. Instead, the developers plan to earn rewards through open-market purchasebacks funded by protocol revenues, directly aligning their incentives with the long-term performance and adoption of the platform. This structure could appeal to investors looking for greater assurance that the teamโs interests are aligned with market outcomes.
Flying Tulip is planning multi-chain deployment, including support for ETH, Avalanche, BNB Chain, Sonic, and Solana. Initial rollout will begin on Sonic, where the project may introduce zero-fee trading as part of its strategy to attract ahead users. This multi-chain approach is intended to maximize accessibility while ensuring scalability and interoperability.
With its significant fundraising and novel redemption mechanism, Flying Tulip is positioning itself at the forefront of the next cycle of DeFi growth. The $200 million raise not only underscores strong investor confidence but also signals a broader appetite for projects that emphasize investor protections alongside ambitious technical roadmaps. If Flying Tulip can deliver on its plans for a comprehensive on-chain marketplace, it could emerge as a major player in the DeFi sector.
As competition in decentralized finance intensifies, Flying Tulipโs combination of large-scale capital, investor secureguards, and multi-chain expansion could set a new benchmark for how DeFi projects approach both fundraising and long-term ecosystem development.