DeFi project Superfluid Finance raises $9 million from Multicoin Capital and other investors

A DeFi protocol focused on recurring payments, Superfluid Finance, raised $9 million in a seed round led by venture firm Multicoin Capital.

1/🚀 Big news for the Superfluid community today

We have raised $9M, to push forward our vision for a Real-time Finance Economy 🌊💰

👉 https://t.co/gJ9xwvkuay pic.twitter.com/Cbc69oTrXI

— Superfluid (@Superfluid_HQ) July 13, 2021

The startup was also backed by Semantic Ventures, DeFiance Capital, Stani Kulechov, head of Aave, Ryan Selkis, founder of Messari, and other investors.

The funding will be used to grow the team and advance the development of its solutions. The project team will organize hackathons and launch a targeted-grants program.

In an interview with The Block, founder Francesco Giorgi Renzi stated that Superfluid Finance plans to build an ecosystem of DeFi applications operating in real time. They will enable the instant transfer of cash flows, including recurring payments such as subscriptions or payroll.

The team believes that in the future decentralized organizations will receive payments “through constant streams of assets moving from one wallet to another, second by second.” This will increase exchange speed, helping to eliminate “idle capital.”

The startup’s protocol operates on Ethereum, Polygon and xDai networks. According to Renzi, by using Super Token (an ERC-20 token), the solution allows users to perform multiple tasks within a single transaction.

To achieve this, Superfluid Finance requires a fast blockchain with low transaction costs, made possible by the use of sidechains.

According to Etherscan, at the time of writing Ethereum processes about 14 transactions per second on average. In the same period Polygon processes more than 76 transactions with an average fee of about $0.00004, according to Polygonscan.

Data from The Block shows the average cost of transmitting a transaction on Ethereum stands at $4.88. This is significantly lower than in May 2021, when the figure was around $45, but still fairly expensive.

In late June, Polygon surpassed Binance Smart Chain by 2.38x and Ethereum by 6.59x.

Earlier this month, the DeFi protocol Goldfinch, which provides uncollateralized crypto loans, raised $11 million from Andreessen Horowitz and other investors.

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