Thread by @geoframeai

With programmable cash flows, your crypto can now read, react, and make decisions, opening up whole new opportunities in finance and incentives.

The epic @Superfluid_HQ recently held their Reactor Summit- dropping a ton of alpha on the topic. I cover it all in this thread🧵
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in the first talk @tonyrosler from @DiagonalFinance covered why on-chain subscriptions are hard

easy = Web2: banks pull money out of accounts which are FDIC insured in case the money is lost.

hard=Web3: can't pull money at the execution later since transactions are pushed by manual signatures.

But what about L2s?

Nope.

1. This requires infinite approvals for the token in question, which has unrealistic trust assumptions and wallets aren't FDIC insured.

2. Too much counterparty risk. If the bot fails, the merchant doesn't get paid. #ngmi.

3. Lack of scalability. Who pays the gas for all these transactions?

Arbitrum: $0.94
Optimism: $.092
Mainnet: $10

Net: not gonna work.
Solution?

Streaming payments: imagine 0.000003 USDC per second.

One transaction to start the stream, one transaction to stop it.

-no unrealistic trust assumptions
-no counterparty risk
-a lot of new sexy benefits.

like what?

This is Netflix's current price/consumption matrix

With streaming payments, look at how much additional revenue could be captured.

Or even this. With streaming payments they can take advantage of the whole range of users.

Imagine receiving an NFT that certifies you were the first subscriber to the @joerogan podcast.

Imagine your business as an NFT that is receiving thousands of continuous streams in real time. Loan options open up because you have on-chain evidence of accounts receivable.

Selling your business is as easy as selling the NFT, with all the revenue going with it 🤯

The most obvious benefit? web3 businesses need to have automated payments to survive.

The second talk was all about real time investing by @sunnyjaycer from @ricochetxchange.

With their service you can initiate a payment stream to a smart contract (a SuperApp) which periodically invests the $ into the target investment.

no repeated transactions or swaps.

Automate your dollar cost average strategy for ETH or BTC holdings. Stream to staked LP positions or to yield-bearing tokens.

If $ can move in real time, it should be put to work in real time.

individuals can automate distributions of incoming streams to whatever they want

DAOs can eliminate transactional upkeep and allow members to trigger streaming treasury distributions with a single vote.

Who is doing this?

A new project called "Butter" helps DAOs diversify their treasuries away from an overconcentration of governance tokens gradually.

Another one called DAM (decentralized asset management) automatically invests into asset portfolio managers like @dHedgeOrg

@ricochetxchange automates your dollar cost average strategy for you, taking care of the sending, swapping, and returning to your wallet.

They are also exploring the new ACL (access control list) on @Superfluid_HQ which enables you to control the stream rate and the conditions (i.e. stream enabled only between a certain price range)

The next talk was all about streaming income-backed loans by @0xErbil at @humafinance

These guys recognize the future belongs to the BUIDLers not just the HODLers. The next billion users won't be brought in by whales with millions in assets.

They will be brought in buy those builders and creators who will be receiving multiple different income streams.

Income portfolios > asset portfolios

Income is the most critical input for lending. Those receiving on-chain streaming income will need to access loans.

They can even begin automatically paying back the loan through a reciprocal stream.

This fits perfectly with the new shift towards Soul Bound Tokens (SBTs), where on-chain reputation is everything.

Huma wants to enable a credit line for every wallet.

Imagine opening your wallet and clicking "check my credit line, powered by Huma."

The next talk was a panel about web3 native business opportunities and what they are seeing.

This panel included @LassuytChristop from @RequestFinance @tarungupta1475 from @0xCoinshift @julien51 from @UnlockProtocol and @MicheleDaliessi from @Superfluid_HQ

There are 3 groups integrating crypto rn.

1. crypto native businesses
2. professional services (lawyers, marketing agencies, software devs)
3. web2 companies trying to transition

Many simply want to send/receive payment overseas. That's all.

Most are interested in resilient operations and don't care about bull/bear speculation.

Many teams have now been funded with crypto and need essential services, which is leading to a predominance of stablecoins.

Cool things are ahead (eg. automatic distributions triggered by certain KPIs).

We need to move past the skeuomorphism and really tap into the new possibilities.

Other thoughts from the panel:

-interconnecting economic players. a company can receive revenue from customers and redirect to suppliers automatically as it comes in.

-one wallet generates yield via DeFi and is redirected to payroll

-home/apartment rental agreement as an NFT that receives the $ as a stream

-the end of expiring cards for SaaS businesses

-pay taxes in real time

-the end of bookkeeping as we know it.

As you can see. Tons of alpha and we are only half way in.

Follow me and catch the second half.

@threadreaderapp unroll