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Flying Tulip, a decentralized finance (DeFi) platform founded by DeFi developer Andre Cronje, has added a circuit breaker that can delay or place withdrawals on hold during abnormal outflows, as DeFi losses surged in April amid a series of major exploits.
According to According to Flying Tulip’s documentation, the mechanism is designed to slow the exit of funds from the protocol in the event that the outflow capacity is exceeded, giving the team time to investigate suspicious activity and limiting the amount an attacker can drain in a worst-case scenario.
Flying Tulip said the circuit breaker works differently across products. In the first version of the circuit breaker, used in the Perpetual PUT product, pull-ups could be undone and users had to try again later. In the second version, used in Flying Tulip’s stable asset and settlement coin, ftUSD, withdrawals are placed in a queue and become claimable after a delay rather than being rejected outright.
Flying Tulip said the circuit breaker is designed with a “non-openable” design, meaning transactions would still be allowed if the safety mechanism itself fails. The platform said that users can track the feature through a dedicated status page.
The design adds a new layer of protection to the DeFi platform as the modern industry exploits exposed risks beyond smart contract code.
Definition of circuit breakers. Source: Flying Tulip
Recent exploits have highlighted broader security failures
The additional attention to outflow controls comes as recent exploits have highlighted vulnerabilities associated with signatories, infrastructure, and collateral design rather than just smart contract bugs.
The biggest failures in April were increasingly linked to operational and infrastructure vulnerabilities, including compromised multisigs, configuration flaws and major leaks, said Amir Hagian, a digital assets researcher at trading firm Keyrock.
The new mechanism deployed by Flying Tulip is designed to slow abnormal outflows and give the protocol time to respond when losses result from failures outside the smart contract itself.
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Hagian highlighted April’s DeFi losses, which reached more than $600 million in the first 18 days of the month, with two incidents accounting for 95% of the damage.
On April 2, the decentralized exchange Drift Protocol was launched on Solana He suffered exploitationIts losses are estimated at about $280 million. On April 19, the Kelp liquid recovery platform was launched It was exploited for approximately $293 millionThis prompted lending protocol Aave to freeze rsETH markets on V3 and V4.
magazine: 53 DeFi Projects Hacked, 50 Million NEO Tokens Could Be ‘Returned’: Asia Express
