The Superfluid protocol is designed as a "token-oriented" protocol in which all of its functionality revolves around the concept of supertokens. Any token can be transferred in Superfluid streams or distributions that are programmable, composable and modular. No capital is blocked and all inflows and outflows are computed in real time on each block without consuming gas.
Currently, the Superfluid protocol has two main pillars that define its interaction with Super Tokens:
- Money Streaming - a set of functions that allow the creation of cash flows between two parties.
- Distributions - a set of functions that allow you to create a pool of funds that can be distributed to multiple recipients.
Supertokens
Supertokens extend the ERC20 token standard with additional features such as cash streaming or distribution, formerly known as supertokens. There are two types of supertokens: wrapper tokens and custom tokens.
- Wrapper supertokens are existing tokens wrapped to gain Superfluid functionality. The wrapper converts the base token into its Super Token version, and unwrapping reverses the process.
- Pure Super Tokens are Superfluid tokens without a base token. They offer the inherent functionality of ERC20 plus the capabilities of the Superfluid Super Agreement.
Supertokens dynamically track account balances, taking into account both regular transfers and the impact of money flows and distributions.
Money streaming
Money streaming is the continuous transfer of tokens from sender to receiver at a certain per-second rate, resulting in a "stream". This stream is perpetual and persists until canceled by the sender or receiver, or until the sender's super token balance runs out.
Instead of one-time transactions, tokens flow from sender to receiver continuously, creating a stream. This method enables real-time financial transactions, allowing for a more dynamic movement of assets over time that more accurately reflects real-world economic activity.
Money Streaming introduces the concepts of flows and flow rates, key elements for managing the continuous movement of tokens.
Flows in Superfluid represent the continuous, per-second movement of tokens between accounts. They are determined by the flow rate and can be dynamically managed by the sender.
You may have trouble noticing the difference between "flows" and "streams". This is a feature, not a bug. The key difference is as follows: Flows can be 0, while streams must be strictly positive.
Flows have the following characteristics:
- Perpetual: Flows continue until the sender decides to cancel them or until the balance runs out.
- Flexible: Flows can be created, updated or stopped at any time.
The flow rate determines the rate at which tokens are transferred in wei per second.
Flow NFTs
Flow Non-Fungible Tokens (NFTs) serve to represent on the chain the sender and receiver involved in a money flow, improving visibility and traceability of flows.
Purpose and Dynamics
- Visual representation: Similar to Uniswap v3 NFTs, Flow NFTs provide a graphical representation of flow positions.
- Transaction Traceability: Easily track the creation and cancelation of flows through mint and burn events.
NFT flow characteristics
- Mintingand Burning: Minted when the flow is opened and burned when it is closed.
- Non-transferability: Flow NFTs cannot be transferred between accounts.
- Separate contracts: Each Super Token has its own Inflow and Outflow NFT contracts.
Flow NFTs display monthly flow volumes, token types, sender/receiver details, network flags, and start dates.
Distributions
Distributions refer to a scalable one-to-many method of transferring funds. It involves the creation of pools with a pool administrator managing units for participants who can receive funds instantly or as a continuous stream.
