DeFi's Latest Trend: Money Streaming
Users of Decentralised Finance (DeFi) may now receive payments in real-time thanks to money-streaming technologies.
One of DeFi's most potent primitives is starting to emerge as money streaming crypto, and for a valid reason. It increases our financial system's functioning in ways that were before impractical. Money streaming appears to be a straightforward idea, but it really has profound effects on both the economy and society as a whole.
More Into Money Streaming
Just like the name says, Money is sent every second in a fluid "stream," which is pretty much how money streaming works.
Thanks to cutting-edge capabilities made available by blockchain technology and asset streaming protocols like Superfluid, money streaming is now a reality.
Due to the intricate, on-chain nature of DAO payment processes, Superfluid is a useful tool for DAO admin seeking to reduce processing time and mental strain.
The flow of money gives the populace more power. This typical change is simultaneously freeing, empowering, and enlightening. Even while money streaming won't become widely used quickly, it is already starting to improve how individuals earn money and make investments.
To know more about Money Streaming, let us take the example of someone who is a Full-Time Content Creator earning money from different enterprises.
Suppose he/she is earning a fixed amount from the brands she promotes, he/she also earns a specific amount from the platform they put their content upon, and lastly, they also earn some amount of money from their management company(if available)
Now, consider a scenario where the content creator is paid in real-time for whatever of the above she works on and gets to use those funds immediately on various things which also includes promoting a charity or non-profit organisation.
This case would not only make the content creator independent in a way that he/she gets to spend on their needs in real-time but also, it would enable the charity to receive a fixed amount repeatedly during a month.
On one hand, the content creator would not be waiting for a specific date to use their funds and the other business would also not wait till a specific date to use their funds.
Money streaming would not only help the person who is directly receiving the money but, would also help others on whom the money is spent.
Money streaming is important because it enables billions of people and companies to instantly (and automatically) take advantage of business opportunities. As money comes in, it can be "put to work," accruing interest in real-time.
DeFi Money Streaming Platforms:
The phrase "decentralised finance", or "defi," refers to the different ways that cryptographic assets and protocols may be utilised to provide financial goods and services.
These products are not dependent on conventional financial middlemen like banks or investment companies.
Here are some of the most renowned DeFi Streaming platforms so you can decide which is the best for you.
LlamaPay
LlamaPay is a salary streaming protocol created by DeFi Llama. It automates salaries, broadcasting them to workers every second so they may withdraw them whenever they choose. The protocol also removes the tedious requirement of manually transferring salaries to employees on a weekly, biweekly, or monthly basis.
All EVM-compatible chains accept LlamaPay. As a result, throughout all chains, every contract will use the same address. Other protocols also provide streams with a time limit. Here is where LlamaPay stands out as unique. They have streams that go on forever. All you have to do is add money to them.
Notably, prestigious companies like Yearn Finance, Convex Finance, SpookySwap, etc. currently use LlamaPay.
Mean Finance
A DeFi application on the Solana blockchain is called MeanFi. Its objective is to greatly simplify cryptocurrency trading and recurrent transactions. A blockchain called Solana features a special consensus mechanism that enables it to operate at an absurdly high speed with very little cost.
With MeanFi, all the members can transmit repeating payments to others via the Money Streaming Protocol. It is the perfect model for salary remittance since it makes streaming simple, handy, and maintenance-free.
Additionally, using MeanFi to send money is completely free. You are not required to log in or adhere to KYC standards by the system. Additionally, there are no transactional restrictions. Users are free to send any amount of money.
Because it lacks a central regulating authority, MeanFi is a bank or financial institution with a difference. The institution bringing crypto and DeFi to regular banking is a self-custody, permissionless, and trustless bank.
Developers may build apps that utilise the Mean protocol by starting with MeanFi, a production Web3 app. Reputable investors such as SoftBank, Solanium, Three Arrows Capital, BTS Capital, and Excalibur Capital, among others, support MeanFi.
Sablier
Lastly, this money streaming platform on the Ethereum blockchain, a system called Sablier permits continuous payments. Paul Razvan Berg, a software developer, started the project Sablier in 2019.
Sablier is the French term for hourglass. He received recognition from MakerDao and MetaCartel shortly after beginning the project, which helped to acquire funding and other types of support for further development.
The community is already catching on to the new phenomena of Sablier and its revenue streams. Social networks are providing useful recommendations for putting the protocol into practice.
Conclusion:
Money streaming is undoubtedly a very effective way of payments which ensures uninterrupted cash flow and better opportunities for everyone to utilise their funds in a defined manner. There have been a lot of speculations on the potential of Money streaming but it still needs some time to come into full motion.
What do you think about Money Streaming? What do you think the future of Money Streaming would look like?