Superfluid Reactor Summit: Streaming Salary Backed Loans

[Applause] [Music] all right with that we are ready for our next talk so next i want to invite purple from huma finance to talk about how do we actually stream stopping salaries loans um and uh i think this also is a really nice sidewalk for what we just answered so uh this kind of enables a lot more new creative ways to uh talk about this so without further ado let's uh welcome and i'll let you take it from here thank you so much kartik um hello everybody i'm gonna share my screen quickly um i change the topic slightly to streaming income background uh because i think salary is a is a component of that and instead of talking about you know human finance and um you know how the product works and everything um i'll kind of like talk more about why this is important and why um right now is the right time and how super food actually enables this experience to be so much greater than uh what could it be uh so again arguel from emo finance i'm one of the co-founders and i'm glad to be here the the first thing to understand is basically where things start and where they are going um in the grand scheme of things um it you know you all know it started with you know this white paper by satoshi they defined bitcoin what is bitcoin i know as many people call it it's kind of like a digital gold it's a digital asset and it has a blockchain system behind which is a distributed ledger that keeps track of who owns what correct um and that you know obviously you know excited a lot of people including many people in this room today um but that was very limited because it only defined a single type of asset and only basically who you know owns what and the biggest innovation after that was actually ethereum because ethereum enabled uh this new concept called asset portfolios right because of the erc20 standard and ft standards you have all these different standards that can actually liberate people who are creators to create this kind of assets um and we started building asset portfolios people started to talk about this asset portfolio zeros and portfolios their token portfolios and empty portfolios and naturally defy as we call it the state class finance um start basically thinking about okay how do i tie these things together right these assets together to create protocols that kind of like uh does some kind of financial engineering maybe you know introduce some kind of inflationary token some reward mechanism so people can use places like portfolios so for a long time if you look at the d5 protocols they only understood us as they only leverage assets and they only created these kind of pairing structures or bonding structures between assets to do finance financial engineering and we got to a point where majority of the you know d5 protocols were over culturalized protocols where you have to have in a lot of assets that you need to collateralize to be able to benefit from these protocols and that created not only a small market for a small number of whales and speculators because there's not much use for over cautionalizing all these assets it also created a you know highly kept inefficient market and it also created a high dependent market where every single token is tied to each other right you have all these engineered players and things that tied to each other where anytime you know something bad happens to one of them we have this cascading effect across the ecosystem um and we are in one of those probably downturns right now unfortunately um and that's also probably one of the reasons why you know dfi as a kind of whole hasn't really grown um as much but innovations are you know right right in front of us and one of those um changes happening in the whole ecosystem outside of d5 is basically this transition from asset portfolios to income portfolios if you think about the next billion people right coming into this ecosystem they're not bringing in millions of dollars in assets right they have not much utilization for all these overclocked class protocols and they're not necessarily interested in speculation they are coming into this ecosystem because of the income opportunities right income opportunities that are you know eminent in the nfd market places as craters equal fortune is in dollar marketplaces incoming purchases as well you know builders and developers uh like ours um but also you know opportunities in these new platform ecosystems um and people are being attracted to this and the next billion people are coming in because of the income opportunities and they're starting to build income portfolios right instead of the kind of real-world scenario where you have maybe one job and one salary um now you have actually all these different ecosystems and communities you're a part of and you're building these income portfolios and this is going to be the new type of passion gig economy um you know in the next 10 20 years so you know that's why i call it buy buy huddlers and welcome builders because that's kind of like where we're going and the next building is i'm interested in and this this actually gives us a pause because um if you think about you know the next building coming um for this income opportunity and buildings income portfolios there is no d5 protocol today they can actually leverage that they can actually understand your income portfolio and can lend you against that however when you got stuck in assets again we talked about this kept connections problem uh the income uh underwriting income is that running can also solve this capacious problem if you ex you know actually look at how traditional finance does landing today income is the most critical input in landing right so if you want to get a mortgage you forget a car loan if you want to get a personal loan credit you know card business loan doesn't matter what you want to get if you go to a lender doesn't matter also you know what your credit score is uh the first and foremost thing they want to know is what is your income right you need to provide this you know payroll statements or cash flow statements if you're in a business getting a loan and then they actually put that in as the most important input into calculating you know what kind of a loan they're gonna provide to you and there's this term called you know that income ratio um and and that's kind of like the critical critical input they use from the income again yet there's no use for income today uh in innova protocols and that's that's kind of like why uh we believe it is you know both the time but also uh it is it is our you know opportunity and responsibility to provide this kind of financial opportunities otherwise you know if you're like me if you spend you know most of your time in this this world and actually you know a measure of income comes from this ecosystem uh if you want to get a mortgage and go to a traditional bank today they will laugh at you um they will not give you anything if you want to get a car loan they'll not give you anything uh again doesn't matter what your credit score is because you know your income doesn't necessarily count uh in that world so that's this that's where um we believe um this critical input needs to have its own primitive and needs to is actually become a significant part of you know the lending protocols and um superfluit here uh provide a very interesting opportunity uh when we went to ethereum denver a few months ago and started thinking about okay like how do we really you know leverage this and build this and and one of the first things we realized is first and foremost you know when you again go to traditional financer and want to get uh uh you know a term a type of loan they ask you for this no um copy or photo photo of your income uh statement it's like in a payslip or you know whatever you might have um but it is much more useful for d5 protocol for these incomes to be actually in a contract and streaming is one of the actually best ways uh to um look at and understand income uh on chain because streaming um signals couple of different things right streaming means that the the payer who's paying this income actually has very high trust in this payee because they're you know creating this very continuous form of payment which is streaming it's also something where you can understand in real time if there is actually uh you know a breach of contract or if some some kind of a divorce between the payer and payee because the stream is going to be cut at that point so you have full understanding of you know the different event that might impact this kind of underwriting so when you start you know looking into superfluid obviously you know like many of you were very impressed with uh what they have built and it gave us a very easy sdk to utilize to understand all these different streaming you know incomes uh that are happening and we're able to you know build a simple prototype that leverage that and not only that it actually helps us in another way which is one of the most important things in automated landing uh is to be able to collect also the the money you landed automatically again this doesn't happen in traditional finance we need to remember you know to pay their lender back but uh if you're actually getting paid um in in a stream uh the moment actually the user borrows money against their stream they can also open a payback stream as well and start paying every single second right so this was not necessarily again possible in the real world traditional finance scenario but it's possible in a streaming scenario because both you can have a very strong understanding of the income because we have this in your stream going on and it's the smart contract and you have the events emitted but also you can open a payback stream and the people can actually start paying back in second uh the moment they you know borrow the money from the protocol so it's also very convenient for that perspective and creates a large amount of trust within the protocol itself um the other thing actually when you look at you know what's going on with the large ecosystem is this you know new uh paper published by vitalik pujain glenn uh i guess about you know 10 days ago or so and you have to read this if we haven't you know read this yet it's called the center society uh fun thing with web3 soul let's talk about you know the soul-bound tokens um one of the uh challenges in uh under quantized landing of any kind uh especially unculturized landing uh that's in combat is a mechanism that understands you know who is behind us who is on the other side of uh this parabolic and in our current form of our kind of like we want design uh we don't have a great mechanism to actually understand who's behind us that's why you know we have to design a protocol that understands the wallet and talks about you know the wallet and uh looks at the income potential of the wallet however uh going forward uh there's a you know a a huge enablement that comes with these sold by tokens because sold talkers can make sure that certain things are transferable between different wallets and they are kind of like sold out to the person that's behind that wallet uh in in the wallet in the paper itself it talks about basically one of the biggest enabler enablers for for this technology is basically the issuance of uncontrolled and under quartalized lending another actually interesting utilization of this technology is creating a debt statement that actually stays involved right so if actually someone takes at that position against their uh streamed income you can actually create a token that defines that statement uh that is soul bond uh foreign as well so there's kind of like a lot of interesting ways you can create this more contract you know like environments and uh uh use cases uh on chain um and again uh when we look at you know uh the evolution of female finance and why we started you know it then were especially with uh superfluid um one reason was the utilization of the superfluid uh streams in terms of like the understanding and the signal of the income but the other aspect of it was basically the the awesomeness of the super fluid 10 because uh when we started digging into you know how to utilize this um uh sdk that built in the ecosystem they built uh we quickly found a group of people who are very passionate to you know sit down with us and begin with us into how we can build things um both within super food ecosystem and also outside of the ecosystem uh so we found great partners um and we start building you know our prototype at italian denver two months ago uh utilizing uh their their technology and we already defined track winner at ethereum denver uh and also uh we were picked as the best overall project built on superfluid uh and that really gave us the kind of courage to actually all go full time and do this as a real startup and we just raised 8 million dollars also in seed funding from some of the best um investors again you know thanks to fran and the superfluid team and and their their one of confidence in us and some of our other partners and uh where we're going next is uh providing a credit line for every wallet out there because we strongly believe income service credit ready to use any time and it's also important to denote that uh we should never think about income only as uh a streaming salary because uh the the overall growth of the ecosystem is showing us that income can come in any form so one of my co-founders richard uh he's a big uh you know participant in the plate or ecosystems he's actually earning you know probably upwards of a thousand dollars every month by just you know playing uh with three games uh and we're seeing you know uh millions of people coming to the ecosystems and earnings you know total of billions of dollars from this ecosystem same thing with crater ecosystem same thing with metabolism same thing with uh some other uh mechanisms where artists actually can start earning you know in this ecosystem uh through royalties and and rents um of uh different types of tokens so uh there's just this you know growing ecosystem of income portfolios as we see and that's why we're so excited to be here today talk about what we started building we don't have a website uh that has an application just yet uh we will have something in the coming weeks uh and we will be in production in q3 this year but in the meantime i'm more than happy to take your questions and talk more about income backed streaming income backed loans and anything along those lines thank you amazing uh that was super awesome and i'm super excited to admit that all this happened in the last three months uh that must have been a crazy uh journey already indeed indeed so uh maybe one kind of obvious question would be just how do you uh can expect people to uh to use this and like what would you have some ideas for uh like how this could be a better integration what would you like to see from the end users and like what can we do beyond just the basics of streaming this perfect question so the way we kind of i'm going about integrating this into different ecosystems is we're looking at specialty ecosystems one is the on-chain payments ecosystems right so super fully obviously is a key part split in this ecosystem but if you look at what super fluid is also integrating with you know you see things like request network for example where request network is an invoicing you know system where you know hundreds of millions of dollars every year is running through the invoicing system uh you see you know payment companies like pay magic utopia labs where these are the tools utilized by dows and their treasuries to pay people so we're looking into direct integrations with those tools because we heard from many of these uh players and and partners that people who are actually getting paid um are in need of simple financing right so they cannot go to their own bank they cannot necessarily go and you know double down on their credit cards uh because their income that they need to you know utilize to borrow against is is on chain and uh we will be integrating deeply uh with these uh uh ecosystems and and partners uh to basically provide as a nato capability in those applications another uh partner uh uh ecosystem we're talking to right now is this again you know plato ecosystems and external ecosystems uh so if you think about the biggest barrier uh for uh you know different type of gamers to join those ecosystems is the barrier to acquire assets required to play the game so for example if you want to you know play uh certain player games you might need to you know put up two thousand dollars maybe sometimes more uh to acquire first assets and then um play the game and yes there are you know maybe guilds that you know will lend you some of these assets and then they take away eight percent of your income but you know you never have to assist yourself you're never liberated as a player and the you know more you play the guilds you know have more income not you uh so you know we're looking at basically partnering with some of these large ecosystems right now so that you know when uh they want to onboard new gamers uh actually you know we're able to look at their future income opportunity and land against it so there's more of a liberation from the you know players perspective to participate in more of these ecosystems so those other two big you know ecosystems are looking at and we're excited about the growth of those um um overall we have some other um you know ideas in mind that we haven't practiced yet you know one of them is we're talking to some you know wallet uh partners where again we envision eventually a credit line for every wallet so let's say you go to metamask you go to in a rainbow whatever is your favorite wallet and you say check my credit line powered by huma boom you have a credit line that might originated by some of our good department so it's kind of like the um different use cases and scenarios we're looking through and building for well that's a that's a really good uh no way especially if it's available as like a line of credit on a wallet that just gets to a closer normal banking experience that uh exactly uh as a question from the audience from from rachel um the question is gonna from could this also be used for for business income as well because you kind of talked about personal loans but is there any logistical difference there there is no difference from follicles perspective the protocol understands income right on a world perspective from a whole perspective if anything actually business income usually is more reliable um as a mechanism to underwrite against and a lot of these you know dolls that actually also paying service dollars or you know small businesses um of the crypto world um and this information is is the same it's represented either you know as a stream as an invoice as as something else so um it can be utilized by both uh business purposes or personal purposes awesome well hopefully that uh clarify that your uh question uh maybe maybe i'll put you on the spot with uh the final question which is uh when can we expect the app to go live great question so uh we're working hard with our initial set of partners we're on for lunch sometime around september so please look forward to that uh and you know feel free to reach out to me on telegram as valedi you can also email us at gm humor.finance and we will soon put up a website where you can also join our waitlist thank you amazing well please follow at human finance on twitter to keep up with everything they're doing