Superfluid Reactor Summit: Investing in real-time

[Applause] [Music] all right with that we are ready for our next talk and that'll be sunny from ricochet exchange talking about investing in real time so i got a preview of what he's going to talk about but uh without further ado let's welcome sunny and uh i'll let you take it from here bye nice car jack just gonna pull up my screen real quick awesome everyone i'm sunny really excited to be talking to you guys about real-time investment today it's a concept that i helped pioneer at ricochet exchange last year and uh today we're gonna be basically defining what real time investing is go over why you want to invest in real time and the advantages of doing it and then lastly break down some projects that are currently in the ecosystem building on top of the concept of real-time investing so first what is real-time investing let's put it let's put a definition to it so i define real-time investing as initiating a super fluid payment stream by the second on-chain payment stream to a special super fluid enabled smart contract which we call super apps which will take the money that you've streamed into the smart contract that being the super app and periodically invest into the target investment asset of your choice so the only thing that you're really doing here to interact with this recurring automated investment process is simply starting a superfluid stream there's no need to repetitively do deposits or swaps it's all abstracted into a single constant by the second superfluid stream and so some examples of this would be you know streaming your money into a super app which will accumulate ethereum for you streaming your money into a super app which will invest into bitcoin for you you can even get more advanced such as streaming your money into super ad that will invest it into yield bearing tokens or even state sushi lp positions so the possibilities with real-time investing are limitless and it's really kind of a really it's really kind of a paradigm shift when it comes to uh investing um which we've traditionally experienced in kind of discrete um swaps transfers and deposits so let's talk about now why you want to invest in real time what is let's let's point out the the real advantages of real-time investing so the way we traditionally experience um d5 investments and those kinds of d5 investment vehicles is through discrete transfers and so with real-time investing you're taking away these kinds of discrete transfers and these you know swaps and you're replacing them with continuous payment streams when you think of investing or sticking your money in ave you traditionally take x amount you go to ave and you deposit it or if you want to swap x amount from from uscc into ethereum you go to sushi swap you go to an amm and you make that happen with a single transaction right and if you want to you know invest recurring in a recurring basis you'd have to basically go and you have to do these on your own right you have to go every so often and make these swaps make these deposits and that's kind of cumbersome and it's uh requires transactional upkeep uh with with superfluous trains we're able to and the code and the composable nature of them you're able to essentially hook up these payment streams into these d5 protocols and these d5 investment vehicles um through super apps and you're able to basically abstract away those discrete transfers and deposits into continuous payments range and basically make investment investing in these kinds of opportunities hands-off and effortless uh the second part here is the fact that real-time investing is responsible it's a responsible way to invest some of us are familiar with the concept of dollar cost averaging dollar cost averaging is the idea of doing fixed investments on fixed intervals into an asset of your choice right so an example here would be investing um five dollars into bitcoin every single day so the power here is that you are investing in basically every single price instead of picking and choosing different prices and trying to time the markets and so as a result your diverse find a way price risk which is very powerful um especially in the kinds of markets that we're seeing today you may invest you may believe heavily in the theory of the future price appreciated appreciation of it but if you had bought in a lump earlier this year you would be like well in the red and so with real-time investing you're able to linearly accumulate these kinds of investment assets and basically remove price exposure as a one-time lump thing and make it kind of a gradual linear exposure which is a more sensible and responsible way to invest the third aspect here is the networking of cash flows so the idea here is that if we have an ecosystem of money moving in real time um you can network cash flows from inbound streams into investment streams and so this is so critical to the superfood ecosystem um that i've basically dedicated a slide to it so the quote here is if money can move in real time it should be able to be put to work in real time and so the idea here is if we're having an economy where we're constantly paying for things in streams and we're receiving our income and streams and we're having this money move around by the second we have to wait for that money to accumulate and then kind of do our swaps and investments and these kind of discrete discrete one-off transfers the user experience hasn't been improved that much and so the idea here is to basically connect these kinds of real-time cash flows that are moving around in this digital economy to investment cash flows such that the second that this money hits our wallet we can put it to work with these investment cash flows so um by creating a creating an ecosystem of real-time investing apps and giving people the opportunities to invest in these traditional d5 vehicles with um with real-time cash flows you're able to basically you know provide more utility for these people that are having your real-time finance and you're also able to reduce the transactional upkeep that these people would traditionally experience without these real-time investing applications so overall um it's really kind of it really adds more utility to people using streams it gives you another reason to transaction streams and kind of is an incentive to enter the real-time finance economy and uh yeah as the ecosystem grows i'm sure that the use of these real-time investment apps will grow as well so that's the idea here kind of like you know if you're receiving say a thousand ten thousand usdc per month in a salary stream like buy the second superfluid salary stream um an example of using number cash flow will be carving off uh a stream of like 3 000 usdc per month into a real-time investing app which will convert it into ethereum or something for you um basically kind of cash flow in investment stream out um in like an and then in an adjacent stream so that's the that's the idea network cash flows all right so i want to talk about two basic entities that could use real-time investing kind of dumbed it down into individuals and dows or organizations so when we think about individuals and um their use of real-time investing well traditionally when we invest we think about that in a monthly amount right we say okay i'm going to invest 500 into my roth ira each month i'm going to invest 200 into ethereum and this usually requires us to make those manual deposits on our own go into our real-time investing available and which kinds of investments you want to invest into and customize which rates you want the rate at which you want to purchase these assets and essentially create like a stream portfolio you can basically say okay i want a hundred uh 100 ucc of each month at 100 ucc of of the d5 pulse index index each month these kinds of different assets you can basically customize them into a real-time stream portfolio and make that process very easy and hands-off um and basically initiate it with single you know start stream transactions so it's it's very simple and so um it's really awesome the way that we're able to abstract this away into a single start stream it's amazing user experience and traditionally accomplishing this is very kind of uh difficult and technical some people they make these kind of investment scripts that do that connect to their wallet and do it in that kind of fashion um some people they try to go through centralized exchanges and based and i'm facing like very heavy um exchange fees this is a very kind of nice lightweight um simple way to accomplish it through superfluid with real-time investing another other entities here are dowels or organizations for businesses a lot of these dowels they sit on a lot of lego capital on chain and they have low risk tolerance and playing that capital to work and so a lot of the conversation around planet's work um usually comes down to the strategy of dollar costs allergy like i spoke on and this was really like the the primary way that these daos put their capital to work in that kind of responsible fashion these doubt these doubts they don't want to be in the business of you know having active trading groups and things like that they simply want to find the most simple way to gain exposure to the assets that they trust in and real-time investing is the best way to do that you simply start a stream and there's no need for that transactional upkeep which can be difficult with daos because you know you have these multi-cigs you have levels of permission with these treasuries and having to work with those kinds of recurring investments can become difficult when you can turn it into single streams and super fluid you know automation um it becomes a lot easier for for these dowels and reduces that kind of red tape another kind of red tape that real-time investing reduces for dallas is decision making so with um with real-time investing dapps an example here would be like a dow they can trigger an on-chain start stream transaction that will invest say 10 worth of its treasury into an asset over the course of the year with a single vote so that really kind of paints a picture of how you know these doubts they can basically turn the their investment strategies into um very kind of simple decisions because it's all kind of coming down it's kind of all abstracted into an easy start stream transactions so um does help thousands those kinds of that kind of sense as well so that's the idea on who um these real-time investing campaign the picture there oh let's let's kind of flip the page and talk about the kinds of products projects that are in the ecosystem building these kinds of real-time investment solutions so the first i want to talk about is butter butter was a hackathon project from i believe eat amsterdam they helped dowse essentially diversify away from their governance tokens over time using super fluid strains by streaming those governance tokens into balancer v2 pools and so the reason this is powerful is because dao is oftentimes they have a lot of financial exposure to their own governance token right i believe the missouri report reported that most dallas have like over 90 percent of their value blocked 90 of their treasury value locked within these governance tokens and so butter allows these dials to gradually over time reduce their exposure to these governance tokens into more solid assets such as stable coins or blue chip tokens such as ethereum or or wrapped bitcoin and so that's what butter's accomplishing um hope to see that product project uh take flight soon another project we have in the ecosystem is the dam protocol um stands for decentralized asset management protocol we refer to them as damp they are working on a project called dsip which essentially allows you to dollar cost average into managed portfolio positions on d heads using superfluid strings so essentially you're automating these streams which will stream money into these different portfolio managers on dhedge that run these kinds of different investment portfolios based on their own kind of strategies and so so it's quite advantageous for for investors that are looking for this kind of management exposure in a responsible fashion and last but not least we have ricochet exchange ricochet exchange is the real-time investing og i helped co-founded last year ricochet exchange allows you to basically dollar cost average into investment assets into various tokens of your choice um ricochet exchange was the very first community deployment of a super app on polygon so they're kind of the the the real ogs when it comes to not just real-time investing but also uh development on superfluid in general and so they're so uh they're so important that i dedicated a slide to their flagship product uh the rex market the rex market lets you essentially dollar cost average with super fluid streams i want to kind of break down the kind of uh architecture of their of the the rex market super app so the rex market super app here is represented by the ricochet logo um in that black box there essentially what we have here are users investors they streaming their diax into the rich super app that ricochet super app every 30 minutes has a trigger has a keyboard triggered the distribute function the distribute function takes the die x that is accumulated in that rex market super app turns around to sushi swap or an amm swaps it to the target asset that in this case being ethereum um and then distributes that theory impacted investors all in one shot using superfluid's instant distribution agreement and so this um this is an amazing user experience they're just streaming in money in their dollar cost averaging and uh it's also very scalable because believe it or not this rex market can have like a million different users and it will still have the same fixed gas cost when it comes to distributing that target asset ethereum back to the investors because it uses something called the instant distribution by superfluid which basically assigns distribution shares to the different streamers based on the size of their streams and so there's no need to do kind of individual transfers up and down the list of people who are investing through the retrofit so it's a very kind of interesting um scalable structure to do this kind of real-time investing and um it's super powerful and it's honestly the very best way to do on-chain dca i've done my homework i've looked at all the models and this is the most scalable framework to make it happen um so it's a great app and it's made possible by superfluid um i also want to touch on the fact that using the rex market is non-custodial so when you um when you invest right it's like when these people are streaming their money into the rec smart contract at any one time the rexmark contract only holds 30 minutes worth of the total value streaming into and so as a result there is very little tbl in these rex market contracts and so there's little smart contract risk and also that ethereum is distributed straight back to investors so these investors they don't have to go to the rex market contract and claim the money on their own um it just shows up straight to their wallet and so they can start you know using it in their in their day-to-day um and take action with it and take advantage of other d5 opportunities as they see fit that's the money's you know straight in their wallet so uh yeah that's the deal here um with rex markets the best model for on-chain dollar cost energy so yeah i want to end the presentation with the call to action real-time investing is growing it's going to grow with the super cool ecosystem and so i highly recommend that you join the community join the real-time finance and real-time investing conversation by hopping in the superfluid discord up into ricochet discord you'll find the links there at ricochet.exchange um go build something there's so many things that have not been built yet with with real-time investing we still need an app that lets you stream your money into into state ave um a tokens there's just so many different ideas out out there and our devex team is ready to help you um get off the ground with them if you you want to kind of keep them up and uh we'd love to help and and basically help developers bring these kinds of real-time investing apps to production and the lastly use ricochet exchange try try out their app it's live at ricochet exchange um you can try today and um it'll really give you a taste for what's possible with real-time investing and uh yeah i hope you guys embark on that real-time investment adventure that is my talk i want to thank you all for your for your time and attention um go follow me at sunnyjacer on on twitter and i hope you guys enjoy the rest of the super fluid reactor summit thank you amazing uh thank you so much for that sonny um it's been an amazing presentation um we're getting in a couple questions uh from the audience so i'll start asking them and in the meantime if you uh anybody in the audience have more questions just type them up in the chat and we'll relay them here so uh okay the first question is um i think there's a would love to get a bit more um understanding of how are people able to get the e-tax token from providing dye so i guess what's happening behind the scenes and if you can sort of uh cover that uh flow i'll start with that yeah essentially yeah absolutely so essentially what's happening is the ethex is being streamed into the rex market contract is accumulating there the distribute takes all this it basically sweeps all the diax that's landed in the contract it takes it to an amm converts it into e dax so basically like basically um regular theory that wraps it into edx that being the the super token version of ethereum that's able to be distributed with an instant distribution agreement um then it is sent out to investors all at once using the instant distribution agreement and the reason that's possible accounting wise is because the the superflu the rex market super app it assigns district distribution agreements sorry distribution units to investors proportional to the size of their stream right so if you're streaming in 200 you die and i'm streaming in 100 per month you're going to receive twice as much of the ethereum as i do and so based on that accounting the rex market super app is able to distribute out the e-tax in the commercial amounts based on this kind of proportion um accounted for in the instant distribution agreement um so really cool stuff there yeah that makes a lot of sense uh hopefully uh that also makes sense for the person who has a question and uh there's another question that came in but i think it's more directed towards super floyd the protocol so i'll still ask it to you because i think you can still answer it but uh if we need more clarification we'll have somebody from the superfloyd team directly answer on the chat so the question is um just overall i guess how dynamic uh actually let me say that directly can we control the stream using the an external dynamic value in terms of uh what the amount is that gets distributed i'll control the stream based on the what dynamic value just any externally defined dynamic value yeah um so superfluid now has a thing called acl so this is called access control list and so basically with this kind of function with this kind of functionality you're able to give a super app the ability to control your stream and change different changes stream rate on your behalf and so you could have a keeper or or an oracle or something connect that to that super app and then the super app could respond to the changes in the oracle um based on whatever kind of indicator or kpi it is and then adjust your your stream rate accordingly and so using that you can accomplish something like uh like a stream investing tool that will only invest between a price range or something like that so definitely possible awesome well that's uh that's a lot more uh kind of power on that programmability of this room payment so uh hopefully felipe that answered your question and with that i want to thank you for taking the time today and uh really appreciate this