DeFi Alpha: Set Up a Streaming Payment with Superfluid

• Featured Yields: Up to 25% APY on Stablecoins, 6-66% APY on ETH and BTC

DeFi Alpha is a weekly newsletter published for our premium subscribers every Friday, contributed by Defiant Advisor and DeFi investor at 4RC, DeFi Dad, and our Degen in Chief yyctrader.

It aims to educate traders, investors, and newcomers about investment opportunities in decentralized finance, as well as provide primers and guides about its emerging platforms. It is meant to be highly actionable and shareable.

Any information covered in DeFi Alpha should not form the basis for making investment decisions nor be construed as a recommendation or advice to engage in investment transactions. Any mention of a token or protocol should not be considered a recommendation or endorsement.

Latest Developments

Before we get started, here are the top headline-grabbing events from this week that every savvy DeFi investor ought to keep on their radar.

• It Isn’t Just the SEC — Feds’ Dragnet Targets Crypto Banking, Too
• NFT Market Gets A Boost From $400M Blur Airdrop
• zkSync Counters Polygon With ‘Mainnet’ Rollup
• Polygon to Deliver Zero-Knowledge Powered Rollup In March
• Balancer Shakes Off Rivals’ Shadow With Novel Strategy

Sponsored Post

Cartesi enables developers to create an entirely new wave of DApps not previously possible on Ethereum or Layer 2s. It also allows developers to focus on what they’re building instead of where they’re building, or what inconvenient limitations they may otherwise need to contend with.

Why developers are building with Cartesi:

• DApps are deployed on their own customizable application-specific rollup chains;

• DApps don’t compete with each other in Cartesi’s ecosystem for scarce blockspace;

• Cartesi provides Ethereum or L2’s with orders of magnitude more computational capacity;

• Developers can code decentralized logic with their favorite libraries, compilers and other time-tested open source components;

• DApps preserve the strong security guarantees and censorship resistance of the underlying blockchain;

• Cartesi Rollups opens up the design space for more expressive and computationally intensive blockchain applications;

• Cartesi Rollups can be deployed as a Layer 2 (on top of Ethereum), as a Layer 3 (on top of Optimism, Arbitrum, zkEVM chains, etc.), or as sovereign rollups;

• Reusing existing tooling, having full programmability is a great way to innovate faster without reinventing the wheel!

Follow @cartesiproject on Twitter, join our Discord, or learn more over on our website, cartesi.io

Yield Alpha

Each week we will provide options to earn yield on ETH, WBTC, stablecoins, and other major tokens.

• ETH: 61% APY with pETH/ETH Curve LP staked in Convex via Concentrator
  • This yield is accrued in aCRV + trading fees compounded in the LP.
  • To participate, one must Deposit into the pETH/ETH Curve LP here (not stake).
  • Then, one must stake the Curve LP under the ETH-pETH vault under aCRV Vaults on Concentrator.
• BTC: 6.42% APR with the Curve multiBTC​+WBTC/sBTC LP staked in StakeDAO
  • This yield is accrued in CRV, CVX, and trading fees.
  • To participate, one must first deposit into this Curve factory pool and then stake the LP here in StakeDAO Lockers.
• MATIC: 14.35% APY with 50/50 MaticX-WMATIC LP on MeshSwap
  • The yield is backed by validator rewards using the MaticX LSD (5.76% APY) + MeshSwap trading fees + MESH rewards + SD rewards.
  • To participate on Polygon, one may use the Stader MaticX dApp to mint MaticX.
  • Then, deposit into the MaticX-WMATIC pool on MeshSwap and stake the LP.
• ATOM: 21.5% APR staking ATOM with Keplr Wallet on Cosmos Hub
  • The yield earned is issued in ATOM.
  • To participate, one must set up a Keplr Wallet, go to the Cosmos Hub validators on Keplr Dashboard, rank by APR, choose a validator, and click Delegate.
  • Then, I specify how many ATOMs and follow the prompts to Delegate.
• BNB: 10% APY with 50/50 BNB/BNBx ApeSwap LP in a Beefy Finance vault
  • This yield is issued in SD, BNB staking yield (thanks to BNBx), and trading fees.
  • On BSC, one can deposit BNB for BNBx here on Stader.
  • Alternatively, one can zap BNB, BNBx or stake the BNB/BNBx ApeSwap LP here on Beefy Finance.
• AVAX: 7.05% APY staking AVAX with ankrAVAX by Ankr
  • This yield is issued in AVAX.
  • To participate, one must deposit AVAX for ankrAVAX here on Ankr.
• SOL: 7.11% APY staking SOL with stSOL by Lido
  • This is backed by SOL staking yield.
  • To participate, one must deposit SOL here or buy it on a Solana DEX.
• FTM: 4.7% APY staking sFTMx liquid staking derivative by Stader
  • The yield is issued in FTM rewards, as sFTMX is earning FTM via validator rewards to support Fantom’s PoS network.
  • To participate, one must deposit FTM for sFTMX here on Stader.
• Stablecoins: 76% APR with the jEUR/sEUR LP staked in Velodrome on Optimism
  • This yield is accrued in VELO.
  • To participate, one must deposit and stake in this jEUR + sEUR LP.

Please be aware we do not always report the highest yield rates because some high yields may be less sustainable due to high inflation token rewards or fewer LPs participating.

Tutorial

Set Up a Streaming Payment with Superfluid

Superfluid is a crypto asset streaming protocol that facilitates hyper-efficient value transfer in Web3 by enabling second-by-second salary, subscriptions, and investment streams.

Money streaming is a compelling application of DeFi because it gives individuals and businesses the ability to immediately and automatically capitalize on economic opportunities.

Let’s look at an example!

In a world running on money-streaming rails, Sally would receive income from her subscription streams by the second — allowing her to put this capital to work immediately and automatically.

For example, she could stream 40% of her income to cover cost of living expenses, 30% to promoting her YouTube channel, 20% to a yield-bearing position through DeFi, and the remaining 10% to an environmental conservation charity.

Now, let’s review the benefits for Sally.

• She’s able to invest in her business, other businesses, and the causes she cares about immediately. Instead of waiting until the end of the month, she can start making a difference in the world every second she receives income.

• The environmental charity, on the other hand, receives much-needed capital sooner and more predictably.

• Last but not least are all of the businesses that Sally pays when streaming her living cost expenses. They receive their income in real-time as well, meaning they can stream their payments and investments forward just like Sally.

The end result is a network of cash flows, where capital moves at theoretically infinite velocity, flowing across the economy in real-time wherever it’s needed most.

At the core of the Superfluid protocol are Superfluid streams: constant flows of value that are executed automatically every time a new block is minted on the blockchain.

1. Gasless Transfers: After opening a Superfluid stream with a single transaction, tokens continue to flow in perpetuity without any additional transactions.

2. No Capital Lockups: Superfluid works with just-in-time liquidity, meaning you only need to maintain a minimum balance in your wallet to keep streams running forever.

3. Programmable: Superfluid is programmable, enabling builders to craft completely new products & experiences that leverage Superfluid streams.

4. On-Chain: Superfluid lives directly on the blockchain, enabling full composability and no delays when moving funds.

To date, over 600 projects have been built with Superfluid — including real-time investing apps, crypto-native subscription platforms, and more!

Today, I’ll show how I can set up my own streaming payment with Superfluid!

Before we get started, please be aware of these risks.

• Smart contract risk in Superfluid

• Front-end spoof attack on the Superfluid dApp

• Admin key compromise

• Systemic risk in DeFi composability

• A pegged stablecoin like DAI could de-peg

Step 1: I go to the Superfluid Dashboard and connect my wallet to one of the 6 supported networks (Polygon, Optimism, Arbitrum, Avalanche, Gnosis Chain, and BNB Smart Chain mainnets)

Step 2: I go to the Wrap/Unwrap widget and wrap tokens into Super Tokens. Super Tokens are an extension of the ERC20 token standard that plug into Superfluid Protocol to enable new value transfer functionalities like money streaming. I’ll wrap some ETH on Optimism in this example!

Step 3: I go to the Send Stream widget and enter the receiver’s wallet address, the Super Token I’d like to stream, and the Flow Rate. I just sent my first money stream!

Airdrop Alpha

In each DeFi Alpha guide, we update a list of DeFi protocols that have yet to announce and/or launch a token.

Blur Airdrop

$BLUR is Live!

If you followed our step-by-step tutorial, you can claim your tokens here.

BLUR is currently trading above $1, giving the NFT marketplace a market cap above $400M.

Treasure Tags

You can now mint your reserved Treasure Tags.

✨ TreasureTags are LIVE for minting now!

Over 52k+ TreasureTags have been reserved since we first launched and you can now officially mint and view your unique Tag on @TroveByTreasure.

✨ Mint your Tag here: https://t.co/rkkf2XcKZ3

More on TreasureTags below 👇 pic.twitter.com/SwGPW7lxA6

— Treasure (@Treasure_DAO) February 13, 2023

• Arch Finance – a protocol for comprehensive indices that provide access to differentiated sources of market risk.

• Aztec – an open source L2 bringing scalability and privacy to Ethereum, with zkSNARK proofs, having launched a private DeFi yield aggregator zk.money.

• DeFi Saver – a one-stop dashboard for creating, managing and tracking DeFi positions across Aave, Compound, Maker, Liquity, and Reflexer

• Jupiter – The leading DEX aggregator by trading volume on Solana

• Lens Protocol – A decentralized composable social graph, underpinning an emerging landscape of Web3 social media dApps including Lenster, Lenstube, and Orb

• LI.FI – A cross-chain bridge and DEX aggregator protocol

• Liquality – A cross-chain, non-custodial browser extension wallet, similar to MetaMask but with more integrations for swapping cross-chain.

• Magic Eden – The leading NFT marketplace by trading volume on Solana

• Nested – a crypto social trading platform built on Ethereum and other chains

• Opyn – one of the OG decentralized options protocols on Ethereum, with major investors that signal a token has to be in their future. Buy/sell puts or call options to earn a possible future airdrop.

• Polymarket – one of the strongest players in the DeFi prediction market vertical, bet on an outcome related to crypto, politics, sports and more or add liquidity

• Polynomial – A newer DeFi derivatives vault creator, built on Optimism

• Sense Protocol – A decentralized fixed-income protocol on Ethereum, allowing users to manage risk through fixed rates and future yield trading on existing yield bearing-assets

• Set Protocol – one of the earliest DeFi protocols yet to launch a token for DeFi asset management, popular for TokenSets and known for powering IndexCoop indexes

• Socket (formerly Movr) – their bridge aggregator Bungee moves assets between chains, finding the cheapest, fastest route

• StarkNet mainnet is live! Bridge and swap some tokens for a potential airdrop. Guide here.

• SudoSwap has released details about its SUDO token and airdrop.If you followed our guide from August 12 and created some trading pools, you should be eligible!

• Volmex – Volmex is a tokenized volatility protocol, similar to the VIX but ETHV

• Wormhole – a cross-chain messaging protocol known for bridging between Solana, Terra, Polygon, BSC, Avalanche, Fantom, and Oasis

• Yield Protocol – a newer protocol for fixed-term, fixed-rate lending in DeFi, backed by Paradigm, one might earn a future airdrop by lending DAI or USDC

• Zapper – participate in Zapper trading, lending, providing liquidity, or yield farming; given the Zapper Quests and NFT Rewards program, it can be surmised that if Zapper ever releases a token, this is one way they might do a retro airdrop

• Zerion – same can be said speculated about Zerion; if they ever release a token, they’re likely to reward those who interacted with their smart contracts swapping, lending, providing liquidity, or borrowing.

• ZigZag – a DEX on zkSync that’s announced an upcoming airdrop.

• zkSync is a Layer 2 scaling solution for Ethereum that uses zero-knowledge proofs to enable scalable low-cost payments. Bridge some assets and do some swaps for a potential airdrop. Guide here.

The information contained in this newsletter is not intended as, and shall not be understood or construed as, financial advice. The authors are not financial advisors and the information contained here is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation. We have done our best to ensure that the information provided is accurate but neither The Defiant nor any of its contributors shall be held liable or responsible for any errors or omissions or for any damage readers may suffer as a result of failing to seek financial advice from a professional.