Flying Tulip March Update

After a successful raise, Flying Tulip launched on February 23, 2026. The first month post-launch validated the core model, with the PUT redemption mechanism working as designed, and the price of FT on the secondary market remained stable, supported by token buybacks.

Community retention has remained strong, operating income is above current cash burn, ftUSD is live and growing, and the next phase of the Product Suite deployment is going according to plan, including the upcoming launches of Lend, Spot, and Total Return Swaps (TRS). 

Lend unlocks novel yield strategies for ftUSD, productive collateral and margin infrastructure; Spot provides integrated execution across AMM and central limit order book (CLOB) liquidity; and TRS is intended to become Flying Tulip’s primary synthetic exposure product.

What is Flying Tulip?

Flying Tulip introduces several financial innovations while solving critical problems that limit capital efficiency and market access in existing DeFi protocols. It is an on‑chain financial system that standardizes pricing, credit, and risk across a suite of products.

Capital in the system is designed to remain productive at all times, simultaneously supporting trading, lending, and derivatives markets. Flying Tulip is designed to have a revenue-generating base layer that does not depend exclusively on speculative market activity. 

Flying Tulip also introduced a token-first financial architecture in which raised capital is deployed into conservative, unwind-friendly strategies, with the resulting yield helping fund the ongoing development of the ecosystem, infrastructure, and operations

This launch also established a new raise mechanism which places investors first and aligns them with the team: All rounds received the same terms with 100% of tokens unlocked, with no bonus tokens distributed to VCs, and no free tokens for the team. Tokens sold across all sale rounds were issued as Perpetual PUTs, granting holders the right to exit their position and redeem their original capital contributed in the same token and amount.

This structure reduces the usual tension between early participants and later buyers by maintaining a perpetual option to exit, rather than forcing investors to seek liquidity on the secondary market.

FT Token

FT is issued as a LayerZero EVM Omnichain Fungible Token, and it exists on Ethereum, Sonic, BSC, Avalanche and Base, with a bridge provided by Stargate.

Revenue and fees (and eventually PUT yield) generated across Flying Tulip products are converted into demand for FT via open market buybacks, and a large share of those buys are burned, reducing supply and reinforcing FT demand.

Once protocol revenue is able to sustain team operations, and reaches $3.5k per day, we plan to burn all unallocated and divested supply, currently 8,745,880,726.58 FT.

In addition to exiting their PUT position, sale participants can also sell their PUT on the Marketplace, and maintain the option to withdraw FT. 

Unlike FT purchased on the open market, PUTs bought from the Marketplace maintain the redemption option for the backing capital. 

By withdrawing, holders receive FT tokens, invalidating the PUT and losing the option to redeem the capital they originally deposited. When FT is withdrawn from the PUT, the backing capital previously reserved for redemption is released.

That capital is used to place buy orders for FT on the secondary market, supporting buy-side liquidity around the average redemption price of invalidated PUTs. Once Flying Tulip’s Spot has been launched, these buybacks will be executed directly through limit orders on the order book. Until then, buybacks are made through FT/ftUSD liquidity on Uniswap. 

Tokens bought at this price are then burned, permanently reducing the supply. As of March 26, over 10,848,045.06 FT has been burned since token launch.

First Flying Tulip product: ftUSD

On February 24, we launched ftUSD, the dollar-pegged stablecoin used across the Flying Tulip ecosystem as the liquidity and settlement layer. It is fully transparent and auditable on-chain. ftUSD can be held as a stable asset, or staked to sftUSD to accrue protocol distributions.

Since launch, ftUSD has continued to grow in supply and in rewards distributed. In its current guarded phase, ftUSD generates yield by deploying USDC and USDT into Aave-compatible yield paths, with mint and redeem fees set at 0.1%. 

As Lend comes online and matures, ftUSD will expand beyond passive wrapper yield into delta-neutral strategies that pair staking derivatives with their underlying assets (stETH/ETH, stBNB/BNB, stAVAX/AVAX, and stS/S), capturing staking yield while minimizing directional exposure

Current total supply of ftUSD is $1.08M, with staked sftUSD earning roughly 3.71% APY on Ethereum, and 1.87% on Sonic.

What comes next?

Following the launch of ftUSD, we are beginning the roll-out of a sequence of integrated financial products that reuse the same pricing, collateral, and settlement infrastructure. This phased launch approach is also designed to validate mechanics, liquidity behavior, and risk controls under real conditions before caps are expanded and removed.

As each new product is released, it adds another element to the Flying Tulip offer, providing incremental utility for existing products. While ftUSD is the liquidity layer of Flying Tulip, Lend is the capital-efficiency layer, Spot is the execution layer, and TRS is the synthetic exposure layer built on the same settlement infrastructure.

FT Lend allows users to supply assets and earn interest or borrow against collateral, with lending markets dynamically linked to on-chain trading liquidity and market volatility. Lend is a key building block for Flying Tulip because it enables both delta-neutral strategies for ftUSD and the margin infrastructure needed for spot and leveraged trading. 

Lend is currently in private staging, with deployment planned for beginning of April. Lend will initially have a capped launch on Sonic, followed by deployment on Ethereum, with a total limit of $5M TVL. As with ftUSD, this guarded launch approach is intended to validate mechanics under real conditions before expanding capacity and complexity.

After Lend, Flying Tulip will launch Spot, an adaptive spot trading engine that routes orders between a dynamic AMM and an on-chain order book (CLOB) to achieve the best execution and liquidity. Flying Tulip will then introduce Total Return Swaps (TRS), giving users leveraged synthetic exposure using ftUSD as settlement collateral. 

Links

• Website: https://flyingtulip.com
• X/Twitter: https://x.com/flyingtulip_
• Discord: https://discord.gg/flyingtulip
• PUT Marketplace: https://marketplace.flyingtulip.com
• FT Docs: https://docs.flyingtulip.com/product-suite/ft-token
• ftUSD Docs: https://docs.flyingtulip.com/product-suite/ft-usd
• Roadmap: https://docs.flyingtulip.com/roadmap
• Contract addresses: https://docs.flyingtulip.com/contract-addresses