ftUSD, issued by Flying Tulip, is a stablecoin that targets a value of one U.S. dollar (USD) [S1]. It is backed by USDC and USDT supplied to onchain money markets such as Aave v3 [S1].

Holders receive a token redeemable for an accepted stablecoin at the prevailing rate [S1]. ftUSD is non-yielding by default; only staked ftUSD (sftUSD) accrues the distributed strategy carry, a variable return that is not guaranteed [S1]. The interest earned on that reserve is what funds those sftUSD distributions [S1].

Flying Tulip operates the protocol and applies sanctions constraints referencing the U.S. Office of Foreign Assets Control (OFAC) [S2]. The documentation names no single corporate issuing entity, no jurisdiction of incorporation, and no financial regulator for the token [S1]. Sensitive contract functions use multisig governance with separated roles, and external audits precede capital-bearing features [S3].

ftUSD is an ERC-20 token deployed on Ethereum and Sonic [S4]. Users mint by depositing an accepted stablecoin such as USDC and receiving ftUSD, and redeem by converting ftUSD back to the input asset at the prevailing rate, with exit and cooldown parameters shown in-app [S1]. The system operates fully onchain with no oracles or centralized systems [S1].

<Sources
  retrievedAt="2026-07-10"
  items={[
    { id: "S1", url: "https://docs.flyingtulip.com/product-suite/ft-usd/" },
    { id: "S2", url: "https://docs.flyingtulip.com/glossary/" },
    { id: "S3", url: "https://docs.flyingtulip.com/risks/" },
    { id: "S4", url: "https://docs.flyingtulip.com/contract-addresses/" },
  ]}
/>


# Asset off peg methodology

## 1. Overview

The asset off peg metric is defined as the percentage deviation of a tokenized asset's daily closing market price from its designated reference (pegged) asset price. This metric is utilized to assess the stability and peg-keeping performance of stablecoins, wrapped assets, and other pegged tokens. The deviation is calculated relative to the reference price, representing either a premium or a discount in the market. Daily tracking of this metric is performed to enable the monitoring of peg stability and the identification of potential de-pegging events across various asset classes.

## 2. Data sources

- **EVM chain events**: `AnswerUpdated` events from Chainlink aggregator contracts, covering EVM-compatible chains (Ethereum, Polygon, and others)
- **Asset metadata**: Reference asset configurations and token mappings
- **External data**: End-of-day price feeds for tokenized assets

## 3. Step-by-step calculation

### Component A: Retrieve asset prices and reference mappings

- **Purpose**: Identify the daily closing price of each asset and map it to its designated reference currency
- **Logic**: Daily closing prices for each asset are retrieved from end-of-day price feeds. Each asset is mapped to its designated reference currency (such as the U.S. Dollar, Euro, or British Pound) using asset metadata. For assets pegged to the U.S. Dollar, a fixed reference rate of 1.0 is assigned. For assets pegged to other fiat currencies, the corresponding Chainlink FX feed is identified.
- **Key fields**: `asset_price` (daily closing price of the asset), `reference_asset` (the target peg currency), `fx_feed_name` (the identifier for the Chainlink FX feed)

### Component B: Resolve daily reference prices

- **Purpose**: Determine the daily USD value of the reference peg currency
- **Logic**: Daily FX rates are extracted from Chainlink oracle price feeds on EVM-compatible chains. To account for days without oracle updates, the last recorded rate for each FX feed is carried forward to construct a continuous daily time series. The daily reference price is then established by matching the asset's mapped FX feed or fixed rate with the corresponding daily rate.
- **Key fields**: `price` (the FX rate from the oracle feed), `timestamp` (the date of the rate), `reference_price` (the resolved daily reference price in USD)

### Component C: Calculate peg deviation

- **Purpose**: Compute the final percentage deviation of the asset price from its reference price
- **Logic**: The daily asset price and the resolved daily reference price are aligned by timestamp and asset identifier. The percentage deviation is calculated by subtracting the reference price from the asset price, and dividing the result by the reference price. Days where a reference price cannot be resolved are excluded from the final dataset.
- **Key fields**: `asset_off_peg` (the percentage deviation from the peg), `timestamp` (the daily grain timestamp)

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

(market_price - reference_price) / reference_price

Percentage deviation of the asset price from its reference peg.

Asset off peg

Stablecoins

Users deposit single assets into wrapper contracts. Flying Tulip deploys these deposits into automated yield strategies (e.g., Aave V3) across Ethereum, Sonic, BNB Chain, Avalanche, and Base, maximizing capital efficiency.

Flying Tulip is a multi-chain yield aggregation protocol that pools user deposits into wrapper contracts and deploys them into automated yield strategies. The protocol supports assets including USDC, wETH, USDT, USDS, USDTb, and USDe, and uses an omnichain FT token to align incentives across its five supported networks.

FT tokenholders own and govern the Flying Tulip protocol. Flying Tulip is a yield aggregation protocol backed by partnerships with major DeFi protocols.

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Asset management

Flying Tulip

Flying Tulip USD (ftUSD) is a U.S. dollar stablecoin issued by Flying Tulip.

Retail investors, professional investors, accredited investors, qualified investors, qualified purchasers, and institutions can mint and redeem directly with Flying Tulip in USDC, USDT, and USSD.

ftUSD has been issued on public blockchains since February 2026 and is native to Ethereum and Sonic.

Flying Tulip USDftUSD