Multicoin: Briefly describe the application scenarios of the programmable cash flow protocol Superfluid


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There has never been a protocol like Superfluid before, so it’s hard to imagine developers using it to build all creative products. In about 4 months after the launch of the beta, developers have built a variety of incredible solutions.

Original title: “Cash Flow Networking”
Written by: Kyle Samani, Managing Partner of Multicoin Capital

DeFi is undoubtedly the most effective application of blockchain. We have also spent a lot of time thinking about this direction, and have been learning from outstanding DeFi entrepreneurs who are building the future of finance.

But when most people think of blockchain, their first thought is “value transfer.” what is the reason? Because this concept is easier to understand. On the track, Superfluid is a new protocol we just invested in, representing the biggest advancement in value transfer since the advent of Bitcoin.

Multicoin Capital led the investment and completed a $9 million seed round investment in Superfluid. Together with Semantic Ventures, which previously led the pre-seed round investment, there are DeFiance Capital, Delphi Digital, MetaCartel Ventures, Fabric Ventures, The LAO, DeFi Alliance, Divergence Ventures and MMC Ventures also participated in the investment. Several well-known angel investors including Balaji Srinivasan, Stani Kulechov, Do Kwon and Ryan Selkis also participated in the investment.

Credit card fraud

Why is credit card fraud a very serious problem?

This problem has also caused extensive discussions on the Internet, but none of them can really solve the root cause.

In the field of encryption, the root cause of credit card fraud is that the public key and the private key are the same thing. If someone has your credit card information (similar to a public key), he can spend it at will. This is incredible for native users of encryption.

In the past few decades, payment companies have built countless levels on this core system to try to ensure security. One of the most well-known is the PCI standard requirements of people in the payment field, and of course there are many other requirements.

Recently, Apple has applied public key encryption technology to traditional systems, adding security space to each iPhone through Apple Pay. In fact, it effectively reduces fraud, so every time a consumer buys something with Apple Pay, the bank needs to pay Apple!

Public key encryption is a way to solve the problem of fraud. In the field of encryption, each blockchain can easily use public key encryption for all payment authorizations. However, the public key encryption technology on the blockchain has some new problems: key management and gas fees.

Superfluid has effectively alleviated these two problems, and has further created a new chain, composable, and extensible value stream network, which cannot be achieved in the traditional financial system.

Programmable cash flow

Since the advent of Ethereum, people have been talking about programmable cash flow. Superfluid pushes the concept of programmable cash flow to the extreme of logic.

In order to better understand Superfluid, we expand it in three levels:

First of all, the basic layer of Superfluid is liquid cash flow. This is easy to understand: “The amount of money that flows through every hour is five dollars.” This statement sounds like a state channel, but it is not. The state channel requires bilateral synchronization signatures between the sender and receiver. Superfluid allows the sender to authorize the transfer with a signature, without the recipient being online. This method reduces the burden of key management. Asset recipients can claim the tokens they receive by signing at any time (or if they don’t claim it, they can use Superfluid to transfer it to others).

The second level of Superfluid is programmability. Smart contracts can control the transfer of tokens like the deposit process. For example: “If I receive at least $10 per hour, then transfer $5 to Bob.” The logic of cash flow can be of any complexity.

Superfluid is a network composed of the value streams of many assets, all of which run at the same time without any additional gas consumption. For example: “Bob receives 20 dollars from the boss every hour, 5 dollars of which are used to repay the loan, then 10 dollars of which are transferred to the savings account, some subscription fees are paid, and the remaining amount is continuously bought into ETH.”

The third layer is the “network layer”, which is why Superfluid is so powerful. Superfluid’s fund flow can be built on the basis of other fund flows-therefore, Bob can send assets to Carol while receiving Alice’s funds.

This solution natively solves a series of problems at the same time: improving capital efficiency, reducing gas costs, and reducing the number of times users need to sign transactions.


There has never been a protocol like Superfluid before, so it’s hard to imagine developers using it to build all creative products. In about 4 months after the launch of the beta, developers have built a variety of incredible solutions. The first batch of wallets (such as Minerva wallet) have natively integrated Superfluid.

DAO payment infrastructure

  • For Dao, paying wages and paying contractors at a weekly or biweekly rhythm is a hassle. Superfluid allows Dao to authorize a single transaction to be paid to the contractor indefinitely or until the end of the transfer. It is expected that by the end of this year, every major DAO organization will use Superfluid. DAOHaus enables Dao to create streams with a codeless interface.
  • This can be extended to DAO to DAO interaction. Ultimately, when multiple DAOs provide new services together, Superfluid will act as a glue to connect all these Daos.


  • DeFi derivatives, credit and debt agreements, and external financial instruments on the chain are coming. These agreements will have an algorithmic periodic asset flow, and the asset flow will be encoded by Superfluid.
  • With the real-time programming of collateral management (compared to the current multi-day settlement, which will cause lenders to face significant counterparty risks), Superfluid can transform risk management.
  • Users who use Superfluid only need one on-chain transaction (minimizing gas consumption) to convert the average dollar cost into a position. Ricochet is currently developing such a tool.

Internet of Things

  • In the next 10 years, hundreds of billions of IOT devices (most of them will be on the Helium network) are expected to power the smart planet, including use cases such as self-driving cars, radars, cameras, and wearable devices. These devices will utilize Superfluid to facilitate real-time payment flows.

Subscription service

  • Subscription in encrypted mode is not yet possible, because there is no way to authorize ACH payments (by design, public key encryption does not allow others to charge your account! Superfluid can solve this problem, it allows users to push to the service provider over time Value without further authorization. Supersaiyan is such a project that has been built on Superfluid.

Real-time finance

  • With Superfluid, we can build a new streaming media economy based on DeFi, which can move assets programmatically at unprecedented speeds. Wolta Finance and Streamswap are construction tools and interfaces that programmatically transfer assets into and out of the DeFi protocol through continuous streams.

Increase the speed of capital flow

Looking forward to the next 10 years, Superfluid will have a profound impact on the value stream, working capital management, IOT machine payment, and even the valuation models of large companies.

Now, both individuals and businesses can pay in installments every week, every two weeks, and every month. Sometimes products and services can be paid for 30 or even 90 days after delivery. These unsmooth cash flows reduce the capital turnover rate of the entire economy and increase the cost of working capital of the entire economy. We accept these arrangements because we lack better technology and the inertia of past lives.

By realizing cross-protocol remortgage of assets, DeFi is improving the capital efficiency of assets. Superfluid goes one step further, improving the capital efficiency of money by simplifying and automating the asset flow network.


At the Ethereum hackathon in September 2020, I met Superfluid for the first time. Although its concept is relatively advanced, I immediately realized the power of the conditional asset flow module. Then I contacted Francesco on Twitter. After meeting Michele, Miao and other team members, we were very excited about the opportunity to lead this round of Superfluid financing.

Since then, Superfluid has been constantly updating and iterating. They have built a strong organic community, and community fans are very willing to build on the basic modules they are developing. In the recent Ethereum hackathon, although there was almost no publicity or marketing, more than 35 teams developed based on Superfluid. As the first batch of investors in The Graph, we have seen many similarities in Superfluid. In the early stage of the project, they were not properly evaluated and valued. We expect that some teams using Superfluid that have emerged in recent hackathons will become the primary applications in the next few years, just as the earlier applications based on The Graph will continue to dominate DeFi (Aave, Uniswap, Compound, etc.).

Superfluid is developing rapidly, and currently they have more than 7 open positions, including a senior smart contract engineer and a marketing manager. If you are interested in joining their team, please click here to view their open positions.

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