#### [ETHOnline-2021](https://showcase.ethglobal.com/ethonline2021/) Project User Story # Streaming Collateral This story has three roles: 1. **The Employer** is an established company which pays salaries in streaming cryptocurrency. 2. **The Employee**, Emmy, received an NFT from her company which acts as the anchor for her incoming salary. She stores it in her hardware wallet. 3. **The DeFi Site** is a Dapp that offers various services, including bridge loans. Suddenly Emmy needed some liquidity. It wasn’t a surprise, she’d been waiting for a specific opportunity. Of course, it arrived right at the moment that most of her savings were locked up in high-yield lending protocols. If she prematurely withdrew she’d pay a penalty. She decided to get a loan from one of the Dapps she’d invested in. At least that way she’d earn a little on her own fees. She connected her hardware wallet and went to the site. On the Borrow page she filled out a form to initiate a bridge loan. The form had multiple fields. Some, like wallet address, were prefilled because she already had an account. She picked a currency, filled in a loan amount, a duration, and under collateral type she chose “Salary anchor”. She input the Token ID from her salary NFT. After reviewing she hit submit and the site said: :::info Pending... Perhaps make a cup of tea? ::: She smiled and made an espresso. Behind the scenes the DeFi site algorithm checked everything. It inspected Emmy’s salary token and did a reverse lookup on the streaming address. It ascertained that the money was coming from a known entity, her company, which had a high trust rating. Then the algorithm calculated an interest rate and inserted it in the boilerplate text of the Approved section. When Emmy came back the Borrow page showed: :::info Your loan is ready! Please carefully review the terms of our contract. Then choose the Proceed (or Modify) button. ::: Emmy frowned at the exorbitant 6.9% APR but whatever, it was only for a while. She read the terms carefully, including the small print that said the text was a translation of contract code: “In the event of a dispute as to the terms of this Agreement the coded version shall prevail.” Right. She hit *Proceed*. The Dapp deployed the contract and displayed its address rendered as a human readable ENS resource: `BridgeLoanContract20211015v12345.defisite.eth` Following instructions, Emmy copied the ENS address, went to her wallet, pasted it in the To field, and sent her salary anchor to the contract. Then the contract sent her the loan principal and it appeared in her wallet. Feeling funded, Emmy got to work. ` ` ` ` ` ` ` ` ` ` ` ` ` ` ` ` ` ` ` ` ` ` ` ` ![Hourglass icon](https://i.imgur.com/o09Oq95.png) Time went by. Emmy’s salary streamed to her NFT in the loan contract. In turn, the contract sent the money to the lender with interest. After a few weeks the loan was paid off. The contract sent Emmy’s salary anchor back to her wallet, settled the remaining fee reserve with the lender, and gave both parties a Trust Point. Emmy didn’t notice until she saw her account was going up again. Ha, more opportunities... *[DeFi]: Decentralized Finance *[NFT]: Non-Fungible Token *[APR]: Annual Percentage Rate
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kitblake
Entrepreneur, technologist, cofounder at Infrae/@infrae, Gauss/@getGauss, and Chaîne Research/@chaineresearch. Writer. Runner.
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Data Streams Like Rain

Volodymyr was tired of getting soaked. In his home country, if you checked the weather you knew what the next hours would bring. If it was gonna rain you took rain gear. If it was sunny you could enjoy it. Nice and consistent. Reliable. In his new country it was chaos. You could walk out the door into blazing sun and five minutes later you’d get drenched. The locals, the cool locals, managed to look cool getting drenched. He’d never get that. There are RainRadar apps which give an approximation. But they aren’t granular enough. Sometimes there’d be no precipitation in the scan and he’d still come into work dripping. After showing up at a few meetings looking bedraggled, eliciting comments from comedian colleagues, Volodymyr decided that he had an itch to scratch. He knew that the weather service provided realtime data and he figured he only needed two parameters: nearby precipitation and wind direction. When he accessed the weather site he found a list of data feeds. They were all realtime and geofenced with minute frequencies. Volodymyr’s spine tingled. This was high quality data.

7/25/2022
Streaming Money Reservoirs

As a civil servant Fritz prided himself on being up to speed. In his research department he was responsible for the finances. They had a lot of obligations and subscriptions. The researchers accessed data every day, often in real-time, and most of the sources cost money. This was particularly true of the streaming data. The entities that offered the data never did it gratis because of the freerider problem. Students, data dilettants and the public would overwhelm the servers, many just letting the data flow. So all the data providers charged something for the data streams, even if it was a minor amount, just to act as a filter. Fritz would setup steaming payments to pay for the streaming data. He coupled each payment to the data flow. If for some reason the data stopped the payment would stop too. Likewise, when researchers went home for the day and stopped using an app, they would turn off the stream so as not to waste bandwidth. The payment would stop too. His department used Superfluid for payments. In order to start a stream it was necessary to post a buffer bond, equal to four hours of stream time. Each subscription also had to have a reserve of currency available for the stream. As a result the reserves added up to a sizable amount. All that cash was sitting in a wallet, doing nothing, when it could be deposited in a DeFi protocol and earn double digit compounding interest.

5/26/2022
Data Flows In, Money Streams Out

Kazumi liked to be efficient. At the software company where s/he worked they were known for their efficient code. But they were most concerned about efficiency with time. They had important things to do. There was this Virtual YouTuber... Everyday they took a tram to the office, and twice a day they didn’t want to wait. The tram company provided an app where you could see what time a tram was supposed to arrive. But that didn’t mean it would. Kazumi liked it when they walked out the door and the tram was pulling up when they arrived at the stop. When an update to the tram app arrived they noticed that the tram company, which viewed itself as a public good, announced real-time tram telemetrics from each tram’s GPS. The data was available via an API. Nice. It was time to scratch that itch. Kazumi decided to make a little app so they could always catch the tram with no waiting. The first thing they discovered was that the real-time data wasn’t free. It cost half a cent per hour, which wasn’t much, but they hated subscriptions. They were an endless cash drain. Every time they looked in their crypto wallet they noted the money trickling out. For some of the streams, like their insurance and electricity, they didn’t mind because they were necessities. But the subscriptions for niceties, like music, were really irking.

5/23/2022
ETHLisbon, an Ephemeral Centro

The ETH[City] conferences are Gatherings. They’re where the urban Guilds and rural Tribes of Ethereum assemble to exchange knowledge. In the after hours they’re festivals, giddy celebrations of the success of the ecosystem. Coincidentally I was on a team that just completed the ETHOnline hackathon (with @tgrykias @eurvin and @bidah). Our project, Streaming Collateral, won the “Most Futuristic Hack” prize from sponsor Superfluid. That garnered a lot of attention so the timing of ETHLisbon was auspicious. Most of the action happens in the side events. The main event is a hackathon but – as I discovered – if you’re not hacking you’re understandably not welcome. There are thousands of people milling about so the organizers need a filter. On Thursday morning I went for a run along the Lisbon waterfront. Splendid views. There’s UNESCO world heritage architecture everywhere. There was also a LISCON before the main conf which required a ticket and was sold out. But on Thursday I took an Uber to the PieDAO loft and one of the guys gave me his badge so I could get in. Francesco Renzi, the CEO of Superfluid, was at LISCON (with a t-shirt for me) and I wanted to meet him and see the event. It was swarming with devgens. There were booths with known names like 1inch exchange and various protocols. Superfluid didn’t have a booth and Fran wasn’t feeling well. He headed back to his hotel and I missed him. We were messaging via Telegram.

10/31/2021
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