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DeFi

Superfluid Protocol brings innovative solutions to the DeFi space, allowing for novel applications in financial management and transactions.

Dollar-Cost Averaging​

Superfluid's automation capabilities extend to the development of recurring investment applications. These applications can stream funds towards investments, providing a hands-off approach to dollar-cost averaging (DCA).

  • Example: Ricochet Exchange demonstrates an application of this concept, where users can automate their investment strategies.

Automated Savings​

Using Superfluid, individuals and organizations can automate their savings or investment allocations. This setup enables a continuous, hassle-free process, effectively creating a "streaming portfolio".

  • Example: This approach can be used to allocate funds into various investments, like yield-bearing assets or cryptocurrencies such as Ethereum and Bitcoin. Further details can be found in this article on real-time investing.

Undercollateralized Lending​

Superfluid facilitates undercollateralized lending based on income streams. This system allows businesses or individuals with consistent revenue streams to secure loans without traditional collateral.

  • Process: A lending contract gains control over a salary or revenue stream, enabling borrowing against future income.
  • Example: Explore the Employment Based Loan for a practical implementation. Additionally, this video provides a technical breakdown.

Lending in Streams​

Superfluid introduces a new paradigm in on-chain lending, where loan repayments and borrowings are handled through continuous streams rather than lump-sum transactions.

  • Benefit: This system allows for automated, on-chain loan repayments and gradual borrowing against collateral.
  • Example: An illustrative project demonstrating this concept can be viewed here.

Streaming Options​

Superfluid also enables a novel approach to options trading, replacing upfront premium payments with continuous streaming payments.

  • Mechanism: An option seller receives a continuous stream of payments until the option is exercised by the buyer.
  • Application: This model is applicable to perpetual options, where the rights are maintained as long as the premium is streamed. For an example, see this streaming call option project.

On-Chain Tradeable Cashflow Assets​

Tradeable cashflow assets in Superfluid involve using NFTs as pointers for money streams, enabling the transfer of future cashflows on-chain.

  • Functionality: The transfer of the NFT shifts the cashflow from the previous holder to the new one.
  • Example: This basic tradeable cashflow example showcases how money streams can be tokenized for on-chain trading.