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Flying Tulip Token

Token

Product Overview​

The FT token is designed to align users, contributors, and the protocol around a simple idea: convert real activity into lasting value. FT achieves this through conservative capital stewardship, clear redemption rights for primary participants, and a token‑first model that routes yield and fees back into the token.

This page explains what FT is, how it’s issued, how the FT PUT Option works (for primary allocations), and how value flows to FT across the ecosystem. For details of the on‑chain raise, see Public Capital Allocation (PCA). For quantitative models, see the Technical Appendix for the PCA. For platform‑wide risks, see Risks, Security & Audits.

What FT is and how it fits​

FT is the native token of Flying Tulip. It exists to:

  • Connect activity to value: Products generate revenue and fees; those dollars are used to buy FT (and in many cases burn it), turning usage into scarcity for holders.
  • Preserve and compound capital: Primary raise proceeds are not spent; they are deployed into conservative, liquid yield. That carry first funds ecosystem development (infrastructure, operations); any surplus is routed to ongoing buyback‑and‑burn.
  • Offer clear, on‑chain rights during the public allocation: the FT PUT Option for primary participants (explained below).

Across the product suite - ftUSD, AMM, Lend, Perps, Insurance, the protocol takes a token‑first approach: where appropriate, fees and yield are converted into FT, creating direct demand for the token as usage grows.

Issuance & supply (high‑level)​

FT has a maximum supply of 10,000,000,000 (10B). New FT enters circulation primarily through the Public Capital Allocation (PCA) at a fixed mint rate of **10 FT per 1∗∗contributed(implied1** contributed (implied 0.10). We mint only in proportion to capital actually allocated; there is no inflation beyond this minting and subsequent cross‑chain movements.

See also

  • Public Capital Allocation (PCA): exact mechanics, accepted assets, and the FT PUT Option lifecycle
  • Technical Appendix: backtests, yield and revenue conversion to buybacks, sensitivity tables

The FT PUT Option (for primary allocations)​

When a primary contribution settles during the PCA, the resulting FT is issued into an FT PUT Option. While your FT remains in the Option, you have three choices at all times:

1) Hold: keep the FT PUT Option open
Do nothing; you keep your redemption right attached to your position while participating in any FT upside.

2) Exit: redeem at par (FT burned)
Redeem any portion of your FT for the same asset and amount you originally contributed (e.g., 10,000 FT ↔ 1,000 USDC). The FT you redeem is burned, permanently reducing supply.

3) Withdraw: unlock FT (PUT invalidated; backing buys & burns)
If you prefer to hold or use FT without the PUT, Withdraw your FT out of the Option. This invalidates the PUT on that portion, and the backing that had reserved your redemption is released and used by the protocol to buy FT on the open market and burn it. What you do with your now‑unencumbered FT (hold, trade, transfer) is up to you.

Intuition:

  • Exit shrinks supply directly (your redeemed FT is burned).
  • Withdraw shrinks supply indirectly (released backing funds open‑market buybacks & burns).
    Either path reduces supply; Hold preserves your right to choose later.

Note
Only primary FT allocated via the Private and Public Capital Allocation carries the FT PUT Option. Secondary‑market buyers do not receive a PUT.

Where FT’s value comes from (and where dollars go)​

Flying Tulip routes multiple cashflow streams toward FT:

1) Backing yield (carry)
Primary contributions (while the FT PUT Option is open) are deployed to conservative, liquid strategies. For example, major stables on Aave, staked assets like stETH/jupSOL/AVAX, or sUSDe for USDe. The first call on this carry is the ecosystem budget (salaries, marketing, infrastructure, operations). Any surplus carry is used for continuous buyback‑and‑burn of FT.

2) Protocol revenue & fees
As products like ftUSD, AMM, Lend, Perps, and Insurance are used, revenue and fees are directed to buy FT (and in many cases burn it). This is the core of the token‑first integration: user activity translates into programmatic FT demand.

3) PUT invalidation releases (Withdrawals)
When a primary holder Withdraws FT from the Option, the PUT is invalidated and the previously reserved backing becomes buyback ammo to purchase and burn FT on the market.

4) Redemptions (Exits) burn supply
When a holder Exits at par, the redeemed FT is burned on the spot, reducing both circulating and total supply.

Together, these flows tie usage and prudently managed capital to per‑token scarcity.

Unlock mechanics (alignment)​

FT’s unlocks are governed by revenue‑funded buybacks. When protocol revenue funds buybacks, Foundation / Team / Ecosystem / Incentives unlock 1:1 in a 40 : 20 : 20 : 20 split.

Key facts​

  • Ticker: FT
  • Supply cap: 10,000,000,000 (10B)
  • Primary issuance: via PCA at **10 FT per 1∗∗contributed(implied1** contributed (implied 0.10)
  • Unlock policy: revenue‑funded buybacks unlock 40:20:20:20 (Foundation / Team / Ecosystem / Incentives)
  • Cross‑chain: FT supports omnichain transfers (OFT)

What this is not​

FT is not a promise of fixed yield or principal outside the conditions of the FT PUT Option for primary allocations. Market prices vary; yields fluctuate; burns depend on realized activity and budgets. Nothing in this page is investment advice.

  • Capital Allocation: mechanics, accepted assets, FT PUT Option lifecycle
  • Technical Appendix: backtests, formulas (yield/revenue → buybacks), scenario tables
  • Risks, Security & Audits: general DeFi risks and PCA‑specific considerations
  • Smart Contracts → FT Token: token interfaces, roles, and implementation details