Flying Tulip

Flying Tulip receives a C- risk grade (54/100) from Hindenrank, where lower scores indicate lower risk. High risk — unprecedented number of novel, tightly coupled mechanisms with no live track record An all-in-one DeFi platform combining a trading exchange, lending, derivatives, insurance, and its own stablecoin (ftUSD) in a single system. Backed by $200M in funding with no live TVL yet. Its D+ grade reflects the highest novelty score in our database with 10 untested mechanisms and 3 critical-severity risks.

The key risks identified for Flying Tulip are: (1) When traders pull money from the exchange during volatility, it automatically tightens lending rules, which forces more liquidations, which drains the exchange further. This feedback loop has no off-switch (2) The ftUSD stablecoin only works if the platform is healthy, but the platform needs ftUSD demand to stay healthy. This circular dependency mirrors the design that destroyed Terra/UST ($40B lost) (3) Prices are set internally with no external checks. An attacker who controls enough liquidity can manipulate prices and profit across the exchange, lending, and futures simultaneously

Flying Tulip scores 54/100 across eight risk dimensions: Mechanism Novelty: 6/15, Interaction Severity: 13/20, Oracle Surface: 8/10, Documentation Gaps: 5/10, Track Record: 6/15, Scale Exposure: 7/10, Regulatory Risk: 3/10, Vitality Risk: 6/10. The highest risk area is Oracle Surface at 8/10.

Among 68 rated DeFi protocols on Hindenrank, Flying Tulip ranks #67 by safety (lowest risk score = safest). Its 54/100 risk score and C- grade place it among the riskier DeFi protocols.

Flying Tulip scores 6/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.