ftUSD (Flying Tulip) - AMM-Native Stablecoin

2026-07-09

ftUSD is the USD-pegged stablecoin native to Flying Tulip, a next-generation AMM protocol. Rather than integrating an external stablecoin like USDC or DAI as the base trading asset, Flying Tulip issues its own stablecoin and uses it as the denominator for all trading pairs. This tight integration between the stablecoin and the AMM is intended to create deeper liquidity and better peg stability than relying on a third-party stablecoin.

ftUSD is minted by depositing collateral into Flying Tulip's protocol vaults. The AMM's fees and constant arbitrage activity provide an additional stability mechanism beyond the standard CDP liquidation model: the stablecoin and the liquidity pool are co-designed so that any price deviation creates profitable trades that naturally restore the peg. Redemptions are available against protocol collateral reserves at any time.

Tracking ftUSD required understanding Flying Tulip's dual-purpose architecture and correctly attributing supply to the stablecoin module rather than the AMM liquidity module. The adapter reads the ftUSD ERC-20 totalSupply() from Flying Tulip's deployed contracts, with the peg type set to peggedUSD. The AMM-native stablecoin model is an interesting design space: having ftUSD tracked on DefiLlama gives researchers accurate supply data to compare this approach against conventional CDP and fiat-backed models.