ftUSD is Flying Tulip's dollar-pegged stablecoin designed for stability first, with optional yield when staked as sftUSD. Unstaked ftUSD serves as a composable, on-chain dollar for trading, settlement, collateral, and liquidity provision across the Flying Tulip ecosystem (e.g., futures, order book settlement).

It maintains a $1 target peg through a delta-neutral architecture that combines conservative money market lending (e.g., USDC to Aave) with offsetting short exposures and staking - for example borrowed assets like Sonic's S staked to stS, balancing long and short sides to minimize liquidation risk.

The mechanism is fully on-chain and transparent, with visible collateral, parameters, and flows—no oracles or centralized components required. Staking to sftUSD accrues yield from net strategy carry: lending interest, staking rewards, funding rates, distributed via protocol treasury mechanisms like buybacks.

Users choose ftUSD for its resilience. Engineered delta-neutral design reduces liquidation risk, optionality (pure stability or yield as needed), and composability within Flying Tulip products. It starts with simple wrappers (USDC/USDT to Aave) and expands to advanced delta-neutral yield strategies (4-12% APY range in descriptions), CDP-style minting, and more.