Glossary
This page defines the concepts used across the Flying Tulip documentation.
Jump to:
A · B · C · D · E · F · G · H · I · J · K · L · M · N · O · P · Q · R · S · T · U · V · W · Y
A
Aave (Aave v3) — A decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.
Accepted Assets — Tokens that can be contributed in the Public Capital Allocation (PCA) or used in products (e.g., USDC, USDT, USDS, USDe, USDtb, WETH, WBTC, cbBTC, SOL/jupSOL, AVAX/wAVAX).
Access Control (contracts) — Role‑based permissions on protocol contracts (e.g., Owner, Configurator, Multisig, Strategy Manager, Treasury).
Adapter Params (LayerZero) — Additional parameters (like gas settings) passed when sending OFT tokens cross‑chain.
AFTER_PUB_OFFERING — PutManager state after the PCA has ended; positions can Withdraw (invalidate PUT) or Divest (redeem at par).
AMM (Automated Market Maker) — On‑chain market using formulas instead of a central order book to quote prices and execute swaps.
AVAX / wAVAX — Avalanche’s native token and its wrapped ERC‑20 representation used for staking and liquidity.
B
Backing (Capital Backing) — The contributed assets that back each primary FT position while the FT PUT Option remains open.
Backing Yield (Carry) — Yield generated by deploying backing into low‑risk venues. Priority: fund ecosystem development first (salaries/marketing/infra/ops); surplus funds buyback & burn of FT.
Basis / Funding (contextual) — The long/short spread or periodic payments that keep derivative prices aligned with spot (used in delta‑neutral strategies and perps).
Beets (staking venue) — A venue referenced for staking Sonic (S → stS) in certain strategies.
Buyback & Burn — Mechanism that buys FT on the open market and sends it to an irrecoverable address, permanently reducing supply. May be funded by backing yield surplus, protocol revenue/fees, or released backing from Withdrawals.
C
Capital Efficiency — Using the same collateral to support multiple activities (e.g., earn yield and back trading/borrowing) to increase effective return per unit of capital.
CLOB (Central Limit Order Book) — An exchange mechanism that matches bids and asks; integrated with Flying Tulip’s permissioned lending for cross‑collateralized trading while deposits continue to earn.
Collateral / Collateral Caps — Assets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.
Configurator (role) — Admin role used to set or update parameters (e.g., pausing, asset lists, strategy weights).
Constant Product / Constant Sum — AMM curve archetypes: x·y = k (constant product) offers LP protection with higher price impact; x + y = k (constant sum) offers tight spreads with less protection. Flying Tulip blends them dynamically (see Hybrid Curve).
Cross‑Collateral / Cross‑Margin — Using one deposit as collateral across multiple markets or products simultaneously (e.g., lending, CLOB, perps).
D
Debt Netting Mechanism — Pool‑level offsetting of long/short exposures that enables delta‑neutral configurations (e.g., ftUSD) with zero‑liquidation risk under defined parameters.
Delta‑Neutral — A portfolio whose net directional exposure is approximately zero, constructed by balancing long and short legs.
Divest (exercise) — Action that exercises the FT PUT Option at par (redeem the original asset/amount and burn the redeemed FT).
Domain Separator / EIP‑712 — The typed‑data signing domain used for off‑chain signatures (e.g., permits).
Dynamic LTV — Borrowing limits that adapt to liquidity, volatility, and order size, instead of using fixed tables.
E
Ecosystem Budget (priority) — The first call on backing yield to fund the organization: salaries, marketing, infrastructure, and operations.
EMA (Exponential Moving Average) — A smoothing method used to detect calm vs. volatile market regimes.
EIP‑2612 Permit (gasless approval) — ERC‑20 extension enabling approvals via off‑chain signatures rather than on‑chain approval transactions.
Exit (redeem) — Use the FT PUT Option to redeem FT for the original asset/amount at par; redeemed FT is burned.
F
FT (Token) — The native token of Flying Tulip. Minted proportionally during the PCA (10 FT per $1) up to a hard cap of 10B. Supports cross‑chain transfers (OFT) and EIP‑2612 permits.
FT PUT Option — The on‑chain right attached to primary FT that lets a holder:
&#xNAN;(1) Hold (keep the right attached),
&#xNAN;(2) Exit (redeem at par; burn FT), or
&#xNAN;(3) Withdraw (unlock FT; invalidate the PUT; released backing funds buyback & burn).
ftUSD — A delta‑neutral, yield‑bearing stable asset designed to target $1 while minimizing liquidation risk by balancing long/short exposures (e.g., supply/stake/borrow loops).
Funding Rate (Perps) — Periodic payments between long/short positions that keep perp prices aligned with spot; can be computed from actual borrowing costs.
G
Gasless Approvals — Approving ERC‑20 allowances via off‑chain signatures (no on‑chain approval tx), typically through EIP‑2612.
H
Hybrid Curve (AMM) — A dynamic blend between constant sum (tight spreads in calm markets) and constant product (LP protection in volatility), informed by regime signals (e.g., EMAs) and guardrails.
I
IN_PUB_OFFERING — PutManager state while the PCA is active; investors can contribute and receive FT into their PUT position.
Impermanent Loss — The divergence loss LPs can face when an AMM pool’s asset prices shift relative to deposit prices; mitigated by Flying Tulip’s hybrid curve behavior in volatile regimes.
Invest (PutManager) — Deposit accepted assets to open a PUT position and receive FT issued into that PUT.
Insurance Pool / FT_exploit_insurance — A capital pool that backs exploit coverage; buyers pay usage‑based premiums, and providers earn yield from those premiums. Claims depend on event verification.
Isolated vs. Cross Margin — Isolated margin confines risk to a single market; cross margin shares collateral across multiple markets.
J
jupSOL — A liquid‑staking representation of SOL used for staking yield in conservative allocations.
K
Keepers (Liquidation Keepers) — External actors incentivized to execute liquidations or complex unwinds. Flying Tulip uses size/time‑sliced execution and rebates to reduce market impact.
L
LayerZero / OFT (Omnichain Fungible Token) — Cross‑chain messaging and token standard that allows FT to move natively across chains.
Lend - Permissionless — A lending system where each AMM pair automatically gets a lending market. Parameters adapt dynamically to market conditions.
Lend - Permissioned — A pre‑configured lending pool enabling cross‑collateral and powering CLOB and Perps; includes debt netting for zero‑liquidation strategies.
Leverage (Perps) — Trading with exposure greater than posted collateral; in FT perps, leverage constraints are set using depth‑aware metrics.
Leveraged Liquidity (AMM) — LP mode that behaves like full‑range coverage but concentrates more capital near the current price to improve fee capture without constant re‑ranges.
Liquid Staking Token (LST) — A token representing staked assets (e.g., stETH, jupSOL) that accrues staking rewards while remaining liquid.
Liquidation / Soft Liquidation — Forced unwind of risky positions; Flying Tulip emphasizes gradual “soft” liquidations via AMM routing, with size/time‑slicing and keeper incentives.
Loan‑to‑Value (LTV) — Borrowing limit as a ratio of collateral value; may be snapshot at opening to avoid abrupt changes affecting users.
M
Merkle Claims / Merkl Rewards — Distributions computed off‑chain and claimed on‑chain via Merkle proofs; supported by wrapper utilities.
Multisig — A multi‑signature wallet with elevated permissions used for safety‑critical admin actions.
N
No Bridging (backing) — Backing capital remains on the source chain and is not bridged as part of the default allocation policy.
Non‑Custodial — Users retain control of assets; contracts enforce rules without centralized custody.
O
OFT (LayerZero) — See LayerZero / OFT.
Oracle (price oracle) — External feed of asset prices. Flying Tulip perps derive pricing/settlement from in‑house trading activity to avoid oracle lag/manipulation.
Order Book (CLOB) — See CLOB; orders can rest while deposits continue to earn in the permissioned lending system.
Opt‑In Settlement LP (Perps) — Liquidity providers who supply ftUSD to settlement pools and earn per‑settlement fees, with exposure managed across providers.
P
pFT (PUT position token) — The developer‑facing token representing a specific FT PUT Option position (one position per token). Used by contracts to manage withdrawFT (invalidate PUT) and divest (exercise at par).
Pause / Pausing — Temporarily halting token transfers or protocol operations via admin roles for safety.
Perpetual Futures (Perps) — Futures without expiration; Flying Tulip uses on‑chain trading as the primary price source with sub‑second settlement and funding tied to real borrowing costs.
Price Impact — Slippage caused by trade size relative to available depth; managed by hybrid curves and depth‑aware metrics.
Public Capital Allocation (PCA) — The on‑chain public event where contributors exchange accepted assets for FT at a fixed rate (10 FT per $1). FT is minted proportionally up to a maximum supply of 10B.
PutManager — The contract that orchestrates PCA participation, FT issuance into PUT positions, and post‑offering actions such as invest, withdrawFT, divest, and state transitions.
Q
Queues / Unbonding (staking exits) — Waiting periods required to withdraw from certain staking positions (e.g., stETH withdrawals, SOL/AVAX unbonding).
R
Reserve‑Weighted Average Price (RWAP) — A price metric that weights observations by available reserves near the path of execution, providing a depth‑aware benchmark for swaps.
Revenue & Fees (Protocol) — Cashflows generated by Flying Tulip products (e.g., ftUSD/settlement rails, AMM, CLOB, Lend, Perps, Insurance) routed to buyback & burn and used to govern unlocks.
Revenue‑Funded Unlocks (40:20:20:20) — When buybacks are funded by revenue, Foundation/Team/Ecosystem/Incentives unlock 1:1 in a 40:20:20:20 split. Yield‑only buybacks do not unlock.
Risk Controls (AMM & Lend) — Guardrails and procedures (e.g., regime detection, snapshot LTV, soft liquidation, size/time‑slicing, incentivized keepers) that aim to reduce tail risk and market impact.
S
sUSDe / USDe — A yield‑bearing form (sUSDe) and its base asset (USDe) used in certain strategies and as accepted assets in the PCA.
Settlement Currency / Pools (Perps) — ftUSD is used as the settlement currency; opt‑in LPs deposit ftUSD to settlement pools and earn fees.
Settlement Speed (sub‑second) — Perp settlements are designed to execute quickly (sub‑second) using on‑chain trading as the price source.
Snapshot LTV — Borrow limits fixed at the time of opening/adjustment to protect users from abrupt parameter changes.
Soft Liquidation — Gradual unwind via AMM with size/time‑slicing and incentives to reduce slippage.
Sonic (S) / wS / stS — Sonic chain’s token and its wrapped/staked variants referenced in certain strategies and accepted‑assets lists.
stETH — A liquid‑staking representation of ETH used for conservative staking yield.
Stablecoin — A token pegged to a reference value (e.g., USD). ftUSD is a stable, delta‑neutral, yield‑bearing variant.
Strategy (ftYieldWrapper) — A yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.
Strike Price (PUT) — The par conversion rate in a PUT: the asset and amount a holder receives when exercising (redeeming) FT.
Surplus (Yield Surplus) — Backing yield remaining after the ecosystem budget; the surplus is used for buyback & burn.
T
Technical Appendix — The quantitative reference for the PCA: allocation assumptions, backtested carry, formulas, sensitivity tables, and combined scenarios (yield + revenue + withdrawals).
Time‑Sliced Execution — Breaking a large unwind into smaller pieces over time to reduce price impact.
Token Unlocks — See Revenue‑Funded Unlocks (40:20:20:20); unlocks are releases from pre‑allocated buckets, not new token inflation.
Total Supply / Circulating Supply — FT has a hard cap of 10B; PCA mints proportional to capital raised. Burns and redemptions reduce circulating or total supply based on the mechanism.
TWAP (Time‑Weighted Average Price) — A time‑only averaging of price used in oracles and analytics; complements depth‑aware measures.
TWAR (Time‑Weighted Average Reserve) — A depth‑aware measure used in perps that considers how much of X can be sold for Y over time, enabling safer leverage and funding calculations.
U
UMA Oracle (Optimistic Oracle) — Third‑party verification service used by Insurance to confirm exploit events before claims are paid.
Unlocks 40:20:20:20 — See Revenue‑Funded Unlocks.
USDC / USDT / USDS / USDe / USDtb — Stablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.
V
Vault (PutManager) — A wrapper/vault address paired with an accepted collateral token that routes deposits to the correct yield wrapper.
W
WBTC / cbBTC — Bitcoin representations used on EVM chains; accepted assets for PCA and supported in some products.
Withdraw (invalidate PUT) — Unlock FT from the FT PUT Option; the PUT is invalidated and the released backing funds open‑market buyback & burn. What the holder does next with FT is independent of this action.
Wrapper Token (e.g., ftUSDC) — ERC‑20 share tokens issued by the yield wrapper for a specific underlying, representing a claim on aggregated strategy positions.
Y
Yield Wrapper (ftYieldWrapper) — A contract layer that aggregates and manages multiple yield strategies for one underlying, standardizing deposits/withdrawals/claims and enforcing role‑gated operations.
Yield Surplus (Y) — The remaining annual backing carry after the ecosystem budget (E) has been funded: Y = max(B − E, 0). Converted to retired FT by Y / P, where P is the average buyback price.