Flap Cycle sweeps every basis point your vaults earn into the surplus buffer — then runs a flap auction that turns the surplus back into FLAP. Deposit, lock, and ride the loop.
Every part of the cycle is on-chain and permissionless. Fees never leave the system as idle treasury — they are converted straight back into demand for FLAP and yield for the people who lock it.
You deposit an asset into a strategy vault (flapUSD, flapETH, and so on) and receive a yield-bearing share token.
The vault runs its strategy. Strategy profit is yours; the management and performance fees are skimmed each harvest.
Skimmed fees are swapped to FLAP and pushed into the surplus buffer, epoch by epoch.
Buffer hits the lot size → a flap auction sells the surplus for FLAP, which is burned, made into liquidity, or paid to veFLAP.
Net APY is shown after fees. Figures below are illustrative sample data for this preview, not live quotes.
| Vault | TVL | Net APY | Mgmt fee | Perf fee | Fees / 30d |
|---|---|---|---|---|---|
| flapUSDStable LP + fee capture | $18.4M | 9.7% | 2.00% | 10% | $41,200 |
| flapETHStaked ETH + covered calls | $27.1M | 6.2% | 2.00% | 10% | $52,700 |
| flapBTCCash-and-carry basis trade | $12.8M | 5.1% | 2.00% | 15% | $19,600 |
| flapRWATokenized T-bill ladder | $9.3M | 4.8% | 0.50% | 0% | $3,900 |
| flapSTOCKsFLAP500 tokenized equity index | $6.6M | 11.4% | 2.00% | 15% | $14,800 |
Flap Cycle charges four fees. None of them accrue to a multisig. They are pooled, then redistributed by the flap auction on a fixed split set by veFLAP governance.
The flapSTOCK vault holds sFLAP500, a permissioned on-chain wrapper of a broad US equity index. Dividends and lending revenue are harvested like any other strategy — the fee cut goes straight into the flap cycle.
Fully-collateralized index token. NAV published every block by three independent oracles. Redeemable 1:1 for the underlying basket by whitelisted market makers.
2.00% management on NAV, 15% performance on dividend + securities-lending income. Everything above that stays with depositors.
It borrows the term from surplus auctions in older CDP systems: when the protocol collects more fee revenue than it needs, it auctions the surplus off to buy back its own token. Flap Cycle makes that auction the core loop rather than an afterthought.
The flap. Each per-block fee is tiny on its own; compounded across every vault and every epoch, small inputs move the whole system. The recycling arrows around it are the cycle.
Two ways. Deposit into a vault to collect that strategy's net yield. Or lock FLAP as veFLAP to receive 30% of everything the flap auction cycles, plus governance weight over fees and the distribution split.
Yes. Strategy vaults can draw down, assets can de-peg, oracles can misprice, and smart contracts can have bugs. Audits and an insurance fund reduce that risk; they do not remove it. Never deposit more than you can afford to lose.
0.10%, and it goes straight to the surplus buffer — the same place every other fee goes. There is no deposit fee and no lock-up on vault shares.