R

RICKdiculouS Streams🌊

Unlocking the liquidity of NFTs with Superfluid and AAVE V3!🤯

Carousel Gallery Item: 1
Carousel Gallery Item: 2
Carousel Gallery Item: 3
Carousel Gallery Item: 4

Last updated: 30 April 2022 05:39 AM

added githb link back

The problem RICKdiculouS Streams🌊 solves

RICKdiculouS Streams is a decentralized peer-to-peer protocol where NFT HODLers can unlock liquidity from their NFTs and lenders can earn passive income. The core protocol is inspired by architecture of RICKS(Recurrently Issued Collectively Kept Shards) and is built on top of Superfluid and AAVE-V3.

🧐How is RICKdiculouS Streams different from other Marketplaces?

NFT markets are very erratic and price of the NFT is very much dependent on Market conditions. If NFT holders want to extract liquidity from their NFT without transferring ownership the only option they have is fractionalizing that NFT on marketplaces like fractional.art. This exposes them to problems like undesired buyouts by relinquishing part of the ownership of their NFTs.
RICKdiculouS Streams tries to solve this problem by using innovative DeFi legos like Superfluid and AAVE.

📝 Example

Alice has a cool Crypto-Punk NFT that she thinks is valued higher than its current market value and she wishes to wait for suitable market conditions but she is in urgent need of some liquidity. She uses RICKdiculouS to convert her NFT into streamable Super tokens and lists the NFT. Bob sees this Crypto-Punk and is interested in its value proposition he decides to invest in this NFT. He will supply his liquidity to AAVE pool through the RICKdiculouS platform now he will start generating interest on the liquidity from AAVE. Now Alice wants to borrow these funds so she will stream her Super tokens to contract let's say 5% per month and as soon as she does she will get the funds in her wallet.
Now Alice can't cancel the stream until she repays her debt if she cancels the stream without repaying, the Super Tokens will be transferred to Bob and she won't be able to reconstitute that Crypto-Punk. If she repays her debt she will get those streamed Super Tokens back and she will be able to reconstitute NFT back.
This creates a win-win situation for both Alice and Bob!🚀

Challenges we ran into

The biggest challenge was coming up with the Architecture of protocol so that it will create desirable outcomes for both lenders and NFT holders. Underneath RICKdiculouS relies heavily on Superfluid callbacks and they are crucial to streaming logic as without them lenders will lose their leverage on NFT holders. Creating that logic from a technical perspective was quite challenging for me as this was my first time working with Superfluid.
As AAVE-V3 is all about L2s cross-chain compatibility will give RICKdiculouS an edge over the competition. This was done using Hyphen. With Hyphen users can transfer their funds from other chains and we have also integrated a cool feature of Hyphen which lets users approve and deposit funds without changing the network. As the address of DAI for Hyphen and for AAVE was different on the Mumbai testnet we had to test the feature locally with a polygon mainnet fork so that address will be compatible with both Hyphen.

🌟 Other technologies that make RICKdiculouS more reliable

  • Gelato- Gelato monitors all the loan agreements on AAVE. So that if lenders withdraw his collateral directly from AAVE, NFT holders NFT will be released back to him and it won't be locked forever in the protocol.
  • Spheron & Filecoin- The application has been deployed to Spheron and pinned on Filecoin.
  • Alchemy NFT API- Alchemy's NFT API has been used to fetch details of all the NFTs.

Discussion