The Dutch audio app maker Elephantcandy has released LiveFX for iPad. This beautiful app is inspired by the Korg Kaoss Pad and brings live effects to the tablet. You can create live remixes of tracks you have purchased on iTunes, add live effects to music created with other apps or to incoming audio from the microphone.
A clever feature is the immediate support for Audiobus, which lets other apps stream their audio directly into LiveFX. This effect is free to use, but with limitations. You can only use the included three tracks for remixes, and Audiobus and the live input only works for a limited time. The full version is available via an in-app purchase for 7.99 euro.
The LiveFX basics are shown in this video: