Flying Tulip’s NFT Options Market Tops $5 Million in Volume, Cronje Says

Flying Tulip’s marketplace for $NFT-wrapped perpetual put options has handled more than $5 million in trades, founder Andre Cronje said on Oct. 5. The NFTs bundle FT tokens with a right to redeem the capital backing the position.

Original token-sale buyers received these positions, known as ftPUTs, as The Defiant reported when FT began trading in February. The marketplace lets holders sell the position with its redemption rights intact, rather than withdraw the FT and surrender that protection.

Buying FT on a spot market does not include a perpetual put. Buying an ftPUT transfers the remaining wrapped tokens and the claim on their backing capital, according to Flying Tulip’s marketplace explanation.

“There are many financial and non-financial instruments that only make sense as NFTs,” Cronje wrote.

What an ftPUT Buyer Receives

The ERC-721 $NFT records a position’s remaining FT and collateral. Its holder can keep the position open, redeem some or all of the backing capital, or withdraw FT to trade separately. Redeeming the backing burns the corresponding FT inside the position; withdrawing FT permanently cancels the redemption right on that portion, the project says.

The redemption right returns the original asset and amount, not a guaranteed dollar value or whatever a secondary buyer paid for the $NFT. Flying Tulip’s capital-allocation documentation says the right has no expiration and that contributed assets are deployed into onchain yield strategies while it remains open.

One recent trade illustrates the difference between purchase price and backing. The project’s transaction dashboard records position P7571 selling on Oct. 5 for 149,000 $USDT before fees, against 94,229.43 $USDT in backing capital. The linked Ethereum transaction confirms the $NFT transfer and a buyer payment of 149,447 $USDT, including the taker fee.

The marketplace checks that a position’s collateral and remaining balances have not changed before a purchase settles. That protects against a seller withdrawing assets after a buyer has priced the position, but does not protect against overpaying. Flying Tulip’s documentation also warns that synchronized redemptions can slow settlement and that the underlying yield strategies carry smart-contract and validator risks.