sftUSD, issued by Flying Tulip, is the staked, yield-bearing version of ftUSD, a dollar-pegged stablecoin that targets a value of one U.S. dollar (USD) [S1]. ftUSD is non-yielding by default; holders opt into yield by staking ftUSD to receive sftUSD, which accrues the distributed strategy carry, a variable return that is not guaranteed [S1].

sftUSD is an ERC-4626 vault share redeemable for ftUSD at the prevailing exchange rate, which increases over time as yield is distributed to the vault rather than through rebasing [S1]. The yield comes from the ftUSD reserve, which is deployed to onchain money markets such as Aave v3 stablecoin lending [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].

sftUSD is an ERC-20 token deployed on Ethereum and Sonic [S4]. Users mint sftUSD by staking ftUSD and redeem by unstaking back to ftUSD 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 redemptions methodology

## 1. Overview

The total value of tokenized assets that are burned or returned to issuer-controlled addresses in exchange for offchain collateral assets is measured by the asset redemptions metric. User demand to exit asset positions and reclaim backing collateral is reflected by this metric. Daily redemption volumes are aggregated across all supported blockchains and converted to USD using end-of-day price feeds. A comprehensive view of capital outflows from tokenized assets is provided by this metric.

## 2. Data sources

- **EVM chain events**: ERC-20 token transfers, covering EVM-compatible chains (Ethereum, Arbitrum, Base, Polygon, Optimism, and others)
- **Solana instructions**: SPL token burn instructions and balance changes
- **Non-EVM chain events**: Native token burn events, transaction net flows, and asset pallet events covering Algorand, Cardano, Injective, Near, Polkadot Asset Hub, Ripple, Stacks, Stellar, and Sui
- **Asset metadata**: Token addresses and decimal precision
- **External data**: End-of-day price feeds

## 3. Step-by-step calculation

### Component A: Extract raw redemption and burn events

- **Purpose**: Token destruction or return to issuer custody across all supported blockchains is identified.
- **Logic**: On EVM-compatible chains, ERC-20 `Transfer` events are parsed where the recipient is the zero address or the dead address. On Solana, SPL token `Burn` instructions are parsed. On Algorand, token transfers to non-circulating configuration addresses (such as creator or reserve addresses) are extracted. On Cardano, negative token deltas are derived from transaction outputs and inputs. On Injective, token transfers with a burn event type are selected. On Near, token burn events are extracted. On Polkadot Asset Hub, `Burned` events from the assets pallet are parsed. On Ripple, transaction net flows that result in issuer inflows are identified. On Stacks, token transfers where the recipient address is null are parsed. On Stellar, SEP-41 `sep41_burn` events are extracted. On Sui, negative deltas are derived from total supply changes of treasury control objects.
- **Key fields**: `timestamp` (event time), `token_address` (asset contract address), `amount` (raw quantity)

### Component B: Apply premint corrections

- **Purpose**: Raw burn volumes are adjusted to exclude non-circulating token movements and include circulation exits.
- **Logic**: For supported assets, raw burn volumes are adjusted by subtracting preburns and adding premint redemptions. Preburns, which represent tokens burned directly from issuer-controlled premint addresses without ever entering circulation, are subtracted from the total. Premint redemptions, which represent transfers from circulating addresses back into premint addresses, are added to the total as they represent assets exiting active circulation.
- **Key fields**: `timestamp` (event time), `token_address` (asset contract address), `amount` (corrected quantity)

### Component C: Normalization and USD conversion

- **Purpose**: Token quantities are normalized by decimal precision and converted to USD.
- **Logic**: Daily token-denominated redemption amounts are aggregated by timestamp, chain, and token address. These amounts are normalized by decimal precision retrieved from token metadata. The normalized redemption amounts are then multiplied by end-of-day price feeds sourced from market data providers to calculate the final USD-denominated redemption value. If no redemptions occur on a given day, the daily value is filled with zero values.
- **Key fields**: `timestamp` (day), `chain_id` (blockchain identifier), `token_address` (asset contract address), `amount` (normalized token quantity), `price_usd` (asset price), `value` (USD-denominated redemption value)

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

Value of assets redeemed or burned for underlying collateral.

Asset redemptions

Tokenized funds

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

Staked Flying Tulip USD (sftUSD) is a tokenized fund share issued by Flying Tulip.

The fund is open-ended and invests in multi-asset.

Retail investors, professional investors, accredited investors, qualified investors, qualified purchasers, and institutions can mint and redeem directly with Flying Tulip in ftUSD, and holders have a right to redeem at net asset value.

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

Staked Flying Tulip USDsftUSD