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ftUSD

Flying Tulip ftUSD

Product Overview​

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

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ftUSD and ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.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 sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry or ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.View glossary entry. Unstaked ftUSD serves as a composable, on‑chain dollar across the ecosystem (trading, settlement, collateralAssets 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 sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry or ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.View glossary entry. Proceeds from unstaked ftUSD accrue to the protocol, helping fund operations and deepen liquidity; stakers receive the distributed yield. ftUSD, sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry, and ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.View glossary entry are fully on-chain, auditable, and transparent, with no oracles or centralized systems.

Note: ftUSD is stable and non‑yielding by default (great for payments, settlement, collateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry); sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry is staked and accrues yield in FT, ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.View glossary entry is also staked but auto-compounds.

Why choose ftUSD​

  • Stable unit of account. A $1‑target stable designed to act as the settlement 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 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 ftUSD to accrue distributed strategyA 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‑neutralA portfolio whose net directional exposure is approximately zero, constructed by balancing long and short legs.View glossary entry architecture aims to reduce liquidationForced unwind of risky positions; Flying Tulip emphasizes gradual "soft" liquidations via Trade routing, with size/time‑slicing and keeper incentives.View glossary entry risk by balancing long/short legs and sizing positions conservatively.
  • On‑chain transparency. CollateralAssets 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 collateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry, or provide liquidity where available.

Note: Only staked ftUSD (sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry or ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.View glossary entry) accrues yield distributions.

How ftUSD works​

ftUSD maintains its dollar target using balanced, delta‑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 strategyA 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 strategyA 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 collateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry to a money marketA lending/borrowing venue where deposits accrue interest and loans are collateralized.View glossary entry (e.g., USDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry → AaveA 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., Ethereum "ETH") against that collateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry, creating a short leg (you owe ETH).
  3. Stake the borrowed asset (e.g., ETH → stETHA liquid‑staking representation of ETH used for conservative staking yield.View glossary entry via a staking venue) to accrue staking earnings = a long leg in stETHA liquid‑staking representation of ETH used for conservative staking yield.View glossary entry.
  4. Loop collateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry prudently (e.g., deposit stETHA liquid‑staking representation of ETH used for conservative staking yield.View glossary entry back to the money 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 liquidationForced unwind of risky positions; Flying Tulip emphasizes gradual "soft" liquidations via Trade routing, with size/time‑slicing and keeper incentives.View glossary entry risk under typical conditions. Risk 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.

Note: Exact venues, parameters, and chain support can change over time. The principle remains: delta‑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 strategyA 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​

  • Stage 0: Start with USDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry/USDTStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry to AaveA decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.View glossary entry wrapper.
  • Stage 1: Expand to FT Lend as it hardens.
  • Stage 2: Add extra stablecoinA token pegged to a reference value (e.g., USD). ftUSD is a stable, delta‑neutral, yield‑bearing variant.View glossary entry collateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry.
  • Stage 3: Deploy delta-neutral on-chain yield.
  • Stage 4: Deploy short funding delta-neutral strategyA 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).
  • Stage 5: Deploy covered call options selling delta-neutral strategyA 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., USDCStablecoins 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.

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

Selling ftUSD​

  • Convert ftUSD → input asset at the prevailing rate.
  • Timing and any small exitAction that exercises the Perpetual PUT at par; the original asset/amount is returned.View glossary entryexitAction 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 or ssftUSD​

Staking converts ftUSD into sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry or ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.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 sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry or ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.View glossary entry (your staked position).

How yield is delivered​

For sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry:

  • sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry represent your staked position in the rewards vault.
  • Net strategyA 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.

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

For ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.View glossary entry:

  • ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.View glossary entry represent your staked position in the rewards vault.
  • Net strategyA 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 do not claim rewards, they are distributed as ftUSD automatically.

Note: ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.View glossary entry rewards auto-compound. Rewards are distributed as ftUSD.

Note: ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.View glossary entry receives slightly less rewards than sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry to encourage FT ecosystem support.

Unstaking​

  • Convert sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry or ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.View glossary entry → ftUSD at the prevailing rate.
  • Timing and any small exitAction 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).

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 strategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entrystrategyA 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 collateralAssets 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 and protocol revenue. The on-chain strategies currently implemented are stablecoinA token pegged to a reference value (e.g., USD). ftUSD is a stable, delta‑neutral, yield‑bearing variant.View glossary entry lending via AaveA decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.View glossary entry1 and stablecoin saving via Spark2; other optional modules are planned.

Strategy yield​

  1. StablecoinA token pegged to a reference value (e.g., USD). ftUSD is a stable, delta‑neutral, yield‑bearing variant.View glossary entry lending (implemented): supply stablecoinA token pegged to a reference value (e.g., USD). ftUSD is a stable, delta‑neutral, yield‑bearing variant.View glossary entry collateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry to a lending market (e.g., USDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry/USDTStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry into AaveA 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 (implemented): use stablecoinA 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 collateralAssets 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-collateralAssets 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 (implemented): 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-collateralAssets 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 (utilizationThe 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 collateralAssets 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., AaveA decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.View glossary entry supply APRs for stablecoins or LSTA tokenized claim on staked assets that remains liquid (e.g., stETH).View glossary entry collateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry).
  • Staking earnings (e.g., stETHA liquid‑staking representation of ETH used for conservative staking yield.View glossary entry) on the long leg.

Distribution to stakers​

All net strategyA 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)​

Rates that drive the strategies are shown in strategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entrystrategyA yield venue tracked by the wrapper; strategies can be added/removed/reordered and capital moved between them by authorized roles.View glossary entry breakdown table.

Benefits at a glance​

  • Optionality: Hold ftUSD for pure stability, or stake to sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry or ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.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 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 collateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry/liquidity.
  • Risk‑aware design: Delta‑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 liquidationForced unwind of risky positions; Flying Tulip emphasizes gradual "soft" liquidations via Trade routing, with size/time‑slicing and keeper incentives.View glossary entry paths.

Risks​

  • Peg and basisThe 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 basisThe 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/exitAction that exercises the Perpetual PUT at par; the original asset/amount is returned.View glossary entry timing: Staked assets (LSTs) may require queuesWaiting 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: StrategyA 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.

Note: Read Risks, Security & Audits for a full discussion of general DeFiFinancial 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 sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry or ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.View glossary entry.

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

What's the difference between sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry and ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.View glossary entry?
sftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in FT.View glossary entry accrues rewards in FT. These reward should be claimed by staker. ssftUSDStaked ftUSD receipt token that accrues the staking pool’s yield in ftUSD.View glossary entry accrues rewards in ftUSD. These rewards auto-compound.

How is the ftUSD peg maintained?
By constructing delta‑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 currencyftUSD is used as the settlement currency; opt‑in LPs deposit ftUSD to settlement pools and accrue fees.View glossary entry and a common collateralAssets 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 UIThe 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 USDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry/USDTStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry to AaveA decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.View glossary entry wrapper?
At launch, ftUSD is a USDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry/USDTStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry to AaveA 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/USDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry (ftUSD/USDTStablecoins 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/USDCStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry (ftUSD/USDTStablecoins accepted in PCA contributions and used across products; each has distinct risk/peg mechanics.View glossary entry) AMMOn‑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.

Is ftUSD available as collateralAssets allowed as collateral and the maximum per‑asset size configured to manage concentration and risk.View glossary entry on Lend? It is possible to confirm on Lend directly.

  • FT Token: how value flows into FT via buyback-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 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

Footnotes​

  1. AaveA decentralized lending protocol used for conservative yield and collateralization in several Flying Tulip flows.View glossary entry: website ↩

  2. Spark: website ↩