Tulip

Yield Aggregator

Tulip is the first yield aggregation protocol built on Solana with auto-compounding yield farming strategies. It also allows users to utilize up to 3x leverage on their liquidity positions.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Tulip allows yield farmers to generate higher earnings through leverage and auto-compounding rewards.
What we like less
The team is anonymous and core smart contracts are controlled by a limited 3/4 multisig.
What it means for you
Offers you several ways to maximize yield on Solana through its core product offerings without cumbersome management.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: TULIP
  • Tags: Yield Aggregator
Key Metrics
  • TVL: $14.6M (Rank #132)
  • TVL Ranking by Yield Aggregator: #0
  • Blockchain: Solana
  • Chain TVL
    • Solana: $14.62M
Risk Assessment
Watch Out
Protocol Code Quality
  • Code not reviewed by any experienced auditors
  • Anonymous team reduces transparency
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2022; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 5% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig requires only one signer (EOA wallet) which implies the protocol is highly centralized as control resides with just one admin
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • At least one critical governance issue documented
  • Highly concentrated voting power increases risk
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
  • Tulip originally launched as SolFarm on Solana as the first yield aggregator on the chain.
Things to know about Tulip

How Tulip works

Tulip is the largest yield aggregator on Solana that pools user deposits into vaults to maximize yield for vault depositors. Tulip supports vaults from supported protocols including Saber, Raydium, and Orca. Users deposit their SPL tokens into the vaults to earn auto-compounding rewards, which are harvested and converted back into SPL tokens every 10 minutes. Depositors are required to keep funds in the pool for at least 2 hours to prevent users manipulating the strategy (earlier withdrawals incur a penalty). Users who deposit into a vault receive tuAssets in return that represent their share of the vault. tuAssets accrue interest over time based on pool utilization, and will be worth more upon redemption. The token deposited into lending vaults are lent out to leveraged yield farming participants. Tulip currently supports up to 3x leverage for this product. Lenders deposit their asset to earn interest and borrowers deposit collateral to leverage/borrow their yield farming.

How Tulip makes money

The protocol currently collects 1.5% on vault profits and 10% on interest earned. Tulip plans to hand over protocol fees to the DAO treasury.

How you make money on Tulip

You can earn yield by depositing assets to specific vaults to maximize your earnings through auto-compounding of rewards and yield maximization strategies. You can also deposit assets to be lent out to borrowers and earn borrowing interest. TULIP currently has no usage outside of being used to incentivize liquidity. On-chain governance is not available yet but is being developed. Once ready, the protocol will allow token holders to vote on platform fees, treasury usage, protocol improvements, pool reward weighting, and value accrual mechanisms (buyback and burn, profit share).