ftUSD

Product Overview

ftUSD and sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry lifecycle.

ftUSD is Flying Tulip's dollar‑pegged token designed for stability first, with optional yield when you choose to stake it as sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry. Unstaked ftUSD serves as a composable, on‑chain dollar across the ecosystem (trading, settlement, collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry). If you want yield, you opt in by staking your ftUSD for sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry. Proceeds from unstaked ftUSD accrue to the protocol, helping fund operations and deepen liquidity; stakers receive the distributed yield. ftUSD and sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry are fully on-chain, auditable, and transparent, with no oracles or centralized systems.

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Note: ftUSD is stable and non‑yielding by default (great for payments, settlement, collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry); sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry is staked ftUSD that accrues yield (opt‑in).

Why choose ftUSD

• Stable unit of account. A $1‑target stable designed to act as the settlement currencysettlement currencyftUSD is used as the settlement currency; opt‑in LPs deposit ftUSD to settlement pools and accrue fees.View glossary entry across Flying Tulip (e.g., futures, order bookorder bookSee CLOB; orders can rest while deposits continue to accrue in the permissioned lending system.View glossary entry settlement, liquidity).
• Optional yield when you want it. Stake sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry to accrue distributed strategystrategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entry carry; keep ftUSD unstaked if you prefer pure stability or need immediate liquidity.
• Engineered for resilience. A delta‑neutraldelta‑neutralA portfolio whose net directional exposure is approximately zero, constructed by balancing long and short legs.View glossary entry architecture aims to reduce liquidationliquidationForced unwind of risky positions; Flying Tulip emphasizes gradual "soft" liquidations via Spot routing, with size/time‑slicing and keeper incentives.View glossary entry risk by balancing long/short legs and sizing positions conservatively.
• On‑chain transparency. CollateralCollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry, parameters, and flows are visible and programmatic.
• Composability. Use ftUSD throughout the FT product suite: trade, settle, post as collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry, or provide liquidity where available.

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Note: Only staked ftUSD (sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry) accrues yield distributions.

How ftUSD works

ftUSD maintains its dollar target using balanced, delta‑neutraldelta‑neutralA portfolio whose net directional exposure is approximately zero, constructed by balancing long and short legs.View glossary entry strategies that combine conservative money markets and staking with offsetting short exposure. The aim is to generate a strategystrategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entry that carries (net of costs) while keeping net market exposure near zero.

Illustrative pipeline (one possible strategystrategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entry):

1. Supply base collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry to a money marketmoney marketA lending/borrowing venue where deposits accrue interest and loans are collateralized.View glossary entry (e.g., USDCUSDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry → AaveAaveA decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.View glossary entry) to accrue low‑risk interest.
2. Borrow a hedging asset (e.g., Sonic "S") against that collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry, creating a short leg (you owe S).
3. Stake the borrowed asset (e.g., S → stSstSSonic chain’s token and its wrapped/staked variants referenced in certain strategies and accepted‑assets lists.View glossary entry via a staking venue) to accrue staking earnings = a long leg in stSstSSonic chain’s token and its wrapped/staked variants referenced in certain strategies and accepted‑assets lists.View glossary entry.
4. Loop collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry prudently (e.g., deposit stSstSSonic chain’s token and its wrapped/staked variants referenced in certain strategies and accepted‑assets lists.View glossary entry back to the money marketmoney marketA lending/borrowing venue where deposits accrue interest and loans are collateralized.View glossary entry) to increase safety buffers and carry.

The long (staked) side and the short (borrowed) side are sized to offset directional risk and reduce liquidationliquidationForced unwind of risky positions; Flying Tulip emphasizes gradual "soft" liquidations via Spot routing, with size/time‑slicing and keeper incentives.View glossary entry risk under typical conditions. Risk controlsRisk controlsGuardrails and procedures (e.g., regime detection, snapshot LTV, soft liquidation, size/time‑slicing, incentivized keepers) that aim to reduce tail risk and market impact.View glossary entry (position caps, rebalancing bands, and venue limits) constrain exposure.

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Note: Exact venues, parameters, and chain support can change over time. The principle remains: delta‑neutraldelta‑neutralA portfolio whose net directional exposure is approximately zero, constructed by balancing long and short legs.View glossary entry construction + conservative sizing to target $1 while producing strategystrategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entry carry.

Staged roll-out

1. Stage 0: Start with USDCUSDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry/USDTUSDTStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry to AaveAaveA decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.View glossary entry wrapper.
2. Stage 1: Expand to FT Lend as it hardens.
3. Stage 2: Add extra stablecoinstablecoinA token pegged to a reference value (e.g., USD). ftUSD is a stable, delta‑neutral, yield‑bearing variant.View glossary entry collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry.
4. Stage 3: Deploy delta-neutral on-chain yield.
5. Stage 4: Deploy short funding delta-neutral strategystrategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entry (after perpetuals engine is live).
6. Stage 5: Deploy covered call options selling delta-neutral strategystrategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entry (after options engine is live).

Buying ftUSD

1. Open the Buy ftUSD screen.
2. Choose your input asset (e.g., USDCUSDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry).
3. Review the quote and confirm.
4. Receive ftUSD in your wallet.

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Note: Buying ftUSD does not start yield. To accrue yield, stake to sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry.

Selling ftUSD

• Convert ftUSD → input asset at the prevailing rate.
• Timing and any small exitexitAction that exercises the Perpetual PUT at par; the original asset/amount is returned.View glossary entry/cooldown parameters are shown in‑app (subject to change with risk settings and network conditions).

Staking ftUSD → sftUSD

Staking converts ftUSD into sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry, the yield‑accruing receipt token for the staking pool.

Staking quick flow

1. Open Stake ftUSD.
2. Enter the amount of ftUSD to stake.
3. Confirm to receive sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry (your staked position).

How yield is delivered

• sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry represents your staked position in the rewards vault.
• Net strategystrategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entry yield and protocol fees are collected by the treasury and distributed to stakers.
• Stakers claim rewards as FT from the rewards vault.
• Rates are variable and not guaranteed; they depend on realized strategystrategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entry carry net of costs and any active policy buffers.

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Note: sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry rewards do not auto-compound. Rewards should be claimed as FT from the rewards vault.

Unstaking

• Convert sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry → ftUSD at the prevailing rate.
• Timing and any small exitexitAction that exercises the Perpetual PUT at par; the original asset/amount is returned.View glossary entry/cooldown parameters are shown in‑app (subject to change with risk settings and network conditions).

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Note: Unstaked ftUSD receives no yield; proceeds accrue to the protocol treasury. Staked ftUSD receives distributed yield from ftUSD strategies.

Yield sources

ftUSD yield is generated from a mix of strategystrategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entry yield on collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry and protocol revenue. The only on-chain strategystrategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entry currently implemented is stablecoinstablecoinA token pegged to a reference value (e.g., USD). ftUSD is a stable, delta‑neutral, yield‑bearing variant.View glossary entry lending via AaveAaveA decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.View glossary entry[^1]; other optional modules are planned.

Strategy yield

1. StablecoinStablecoinA token pegged to a reference value (e.g., USD). ftUSD is a stable, delta‑neutral, yield‑bearing variant.View glossary entry lending (implemented): supply stablecoinstablecoinA token pegged to a reference value (e.g., USD). ftUSD is a stable, delta‑neutral, yield‑bearing variant.View glossary entry collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry to a lending market (e.g., USDCUSDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry/USDTUSDTStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry into AaveAaveA decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.View glossary entry) to earn interest.
2. Lending-based delta-neutral carry (roadmap): use stablecoinstablecoinA token pegged to a reference value (e.g., USD). ftUSD is a stable, delta‑neutral, yield‑bearing variant.View glossary entrystablecoinA token pegged to a reference value (e.g., USD). ftUSD is a stable, delta‑neutral, yield‑bearing variant.View glossary entry collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry in a lending market to borrow native network asset, wrap it into a staking asset, and earn net carry when (staking yield + staking rewards) - (native borrow cost) > 0.
3. Crypto-collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entrycollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry carry (roadmap): deposit a yield-bearing crypto asset (e.g., staked ETH), borrow equivalent native (ETH), sell to USD, and deploy the USD for yield; target (USD yield + native yield + staking yield) - (native borrow cost) > 0.
4. CDP-style minting (roadmap): allow multi-collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry minting, with a variable interest rate driven by supply/demand (utilizationutilizationThe share of a pool’s assets that are currently borrowed or in active use.View glossary entry) on the lending layer.
5. Peg keeper module (roadmap): sell when ftUSD trades above net asset value (NAV) and buy when below, capturing arbitrage profits.
6. CFD/perp carry (roadmap): use staking assets as collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry and hold a 1x native short to earn positive funding/carry when available.

Protocol fees

• Money‑market interest (e.g., AaveAaveA decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.View glossary entry supply APRs for stablecoins or LSTLSTA tokenized claim on staked assets that remains liquid (e.g., stETH).View glossary entry collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry).
• Staking earnings (e.g., stSstSSonic chain’s token and its wrapped/staked variants referenced in certain strategies and accepted‑assets lists.View glossary entry) on the long leg.

Distribution to stakers

All net strategystrategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entry yield and protocol fee revenue is collected by the protocol treasury; then at treasury discretion distributed via buyback-and-distribute to ftUSD stakers.

Comparative benchmarks (snapshot)

Reference rates[^2] that drive the strategies include stablecoinstablecoinA token pegged to a reference value (e.g., USD). ftUSD is a stable, delta‑neutral, yield‑bearing variant.View glossary entry supply APY, native borrow APRAPRAn annualized rate that does not include compounding.View glossary entry, staking APY, and funding/basisbasisThe long/short spread or periodic payments that keep derivative prices aligned with spot (used in delta‑neutral strategies and futures).View glossary entry.

Benchmark	Chain	APY
AaveAaveA decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.View glossary entry v3 USDCUSDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry supply	Ethereum	3.50%
AaveAaveA decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.View glossary entry v3 USDTUSDTStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry supply	Ethereum	2.56%
Compound v3 USDCUSDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry supply	Ethereum	3.52%
Lido stETHstETHA liquid‑staking representation of ETH used for conservative staking yield.View glossary entry staking	Ethereum	2.55%

Benefits at a glance

• Optionality: Hold ftUSD for pure stability, or stake to sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry to accrue protocol distributions.
• Lower operational burden: Yield routing and rebalancing are handled on‑chain; staking is one click.
• Ecosystem native: ftUSD is the settlement currencysettlement currencyftUSD is used as the settlement currency; opt‑in LPs deposit ftUSD to settlement pools and accrue fees.View glossary entry across futures and other markets; widely usable as collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry/liquidity.
• Risk‑aware design: Delta‑neutralDelta‑neutralA portfolio whose net directional exposure is approximately zero, constructed by balancing long and short legs.View glossary entry construction with sizing bands and venue caps to reduce common liquidationliquidationForced unwind of risky positions; Flying Tulip emphasizes gradual "soft" liquidations via Spot routing, with size/time‑slicing and keeper incentives.View glossary entry paths.

Risks

• Peg and basisbasisThe long/short spread or periodic payments that keep derivative prices aligned with spot (used in delta‑neutral strategies and futures).View glossary entry risk: Severe market moves can widen basisbasisThe long/short spread or periodic payments that keep derivative prices aligned with spot (used in delta‑neutral strategies and futures).View glossary entry or stress hedges; the $1 target can deviate.
• Venue risk: Money markets, staking, and external protocols carry smart‑contract and validator risks.
• Liquidity/exitexitAction that exercises the Perpetual PUT at par; the original asset/amount is returned.View glossary entry timing: Staked assets (LSTs) may require queuesqueuesWaiting periods required to withdraw from certain staking positions (e.g., stETH withdrawals, SOL/AVAX unbonding).View glossary entry; large rebalances can take time.
• Parameter risk: StrategyStrategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entry weights, caps, and rebalancing rules can change as risk conditions change.

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Note: Read Risks, Security & Audits for a full discussion of general DeFiDeFiFinancial services built on public blockchains using smart contracts rather than centralized intermediaries.View glossary entry risks and capital‑allocation specifics.

FAQs

Does ftUSD pay interest automatically?
No. ftUSD is non‑yielding by default. To accrue yield, stake to sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry.

What's the difference between ftUSD and sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry?
ftUSD is the base stable (target $1). sftUSDsftUSDStaked ftUSD receipt token that accrues the staking pool’s yield.View glossary entry is the staked receipt that accrues protocol distributions tied to ftUSD strategies.

How is the ftUSD peg maintained?
By constructing delta‑neutraldelta‑neutralA portfolio whose net directional exposure is approximately zero, constructed by balancing long and short legs.View glossary entry positions (balanced long/short) with conservative sizing and rebalancing controls. This reduces exposure to directional market moves.

Can I use ftUSD across the protocol?
Yes. ftUSD is designed as the settlement currencysettlement currencyftUSD is used as the settlement currency; opt‑in LPs deposit ftUSD to settlement pools and accrue fees.View glossary entry and a common collateralcollateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry across the product suite; availability varies by feature and chain.

Where can I see rates and history?
The Stake UIUIThe visual interface through which users interact with an app or product.View glossary entry shows current pool stats (e.g., exchange rate, historical performance). Rates are variable and not guaranteed.

Is ftUSD just a USDCUSDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry/USDTUSDTStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry to AaveAaveA decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.View glossary entry wrapper?
At launch, ftUSD is a USDCUSDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry/USDTUSDTStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry to AaveAaveA decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.View glossary entry wrapper (Stage 0). It expands through the staged roll-out above.

Is the ftUSD/USDCUSDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry (ftUSD/USDTUSDTStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry) pool just a Uniswap v3-style CLMM?
Yes. The ftUSD/USDCUSDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry (ftUSD/USDTUSDTStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry) AMMAMMOn‑chain market using formulas instead of a central order book to quote prices and execute swaps.View glossary entry uses a standard Uniswap v3-style CLMM as a security consideration.

Related pages

• FT Token: how value flows into FT via buyback-and-burnbuyback-and-burnA mechanism that buys FT on the open market and sends it to an irrecoverable address, permanently reducing supply. May be funded by backing capital yield surplus, protocol revenue/fees, or released backing capital from withdrawals.View glossary entry
• Capital Allocation: mechanics, Perpetual PUTPerpetual PUTThe on-chain right attached to primary-issued FT that lets a holder: Hold (keep the FT NFT attached), Exit (Exit at par; return collateral), or Withdraw (unlock FT; invalidate the PUT; released backing capital can fund market buyback-and-burn of FT).View glossary entry lifecycle
• Risks, Security & Audits: risk framework and controls