Superfluid Finance, an Ethereum-based money streaming protocol that automates recurring transactions, raised $ 9 million in a seed funding round.
The round was led by Multicoin Capital, which included Semantic Ventures, DeFiance Capital, Delphi Digital, DeFi Alliance, Divergence Ventures and others. Angel investors including Balaji Srinivasan, Ryan Selkis from Messari and Stani Kulechov from Aave also supported the round.
The new injection of capital will help Superfluid grow its team and build an ecosystem of new “real-time financial applications,” said co-founder and CEO Francesco George Renzi to The Block. These applications will enable real-time cash flows, including subscription payments, salaries and rewards, with individual transactions in the chain.
Superfluid is currently live on the Ethereum, Polygon and xDAI networks. With an ERC20 token called the Super Token, Superfluid enables users to perform multiple tasks in a single transaction, Renzi said.
For example, let’s say a user wants to donate to various open source projects on a regular basis. “The first thing you would do is get yourself a Super Token, for example DAIx on Polygon. You could do this by updating your existing DAI tokens with Superfluid, a process that allows ETH to be incorporated into WETH is similar, “said Renzi.
“Once you have Super Token, all you have to do is sign a transaction to start a stream. As soon as the transaction is confirmed on the blockchain, the stream will start. As a sender, your account balance starts to decrease, while the account balance of the recipient increases.”
Since Superfluid only requires a single transaction to initiate a flow of money, there are no additional gas or transaction costs.
Unlike payment channels, users don’t have to fund a channel entirely with Superfluid, and so the protocol helps with capital efficiency, Renzi said. It is therefore opening up an entirely new subscription-based on-chain economy, he added.
“Streaming payments – that is, from one account to another and then to others at the same time, all in real time – has long been the holy grail of decentralized finance. Government channels were seen as the solution but by definition cannot scale. The problem of locked assets and design capital inefficiency, “said Kyle Samani, Managing Partner at Multicoin Capital.” Superfluid is pioneering an entirely new category of cash flow and incentive design. “
Superfluid currently has seven full-time employees and some part-time employees, and the project is looking for at least eight additional employees in marketing, developer relationships and technical functions, Renzi said. According to Renzi, Superfluid is also creating a grant program with the new funds to allow more Web2 developers to join the crypto space.
“We believe we need to create a new generation of crypto natives who are paid for with streaming money,” he said.
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