Andre Cronje, founder and CEO of Flying Tulip, argues that decentralized finance has evolved beyond pure decentralization as a operating model. Modern protocols require teams, offchain infrastructure and upgradeable systems, creating operational risks that smart contract audits alone cannot eliminate. Flying Tulip employs circuit breakers with a six-hour withdrawal delay and strict separation between emergency controls and fund-movement authorities. The protocol offers equity-based margin accounts rather than LTV-based accounts, supporting up to roughly eight turns of leverage, currently operating at approximately 1.5x. The liquidation process uses an RFQ system that repays debt dollar for dollar, avoiding haircuts to users.
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