Using Ricochet to Empower Streamed Salaries
If you’re earning your salary via a Superfluid stream, Ricochet Exchange puts significant passive investing power in your hands.
Ricochet is laser-focused on building innovative, real-time investing products on top of Superfluid’s core streaming primitive.
One of the most broadly applicable Superfluid use cases Ricochet is improving is the utilization of streamed salaries — Ricochet’s platform enables real-time conversion of a portion of streamed salaries into customizable, automated, self-harvesting investment streams.
Let’s walk through how this works and why it’s an important innovation.
Consider a person trying to regularly invest a portion of their traditional salary, paid monthly from an employer. They have to wait for the deposit to hit their account, remember to make the monthly buy, and try to time the market to minimize short-term price fluctuations. This structure is:
- Cumbersome: Irregular batch payments rob you of real-time liquidity
- Rigid: Infrequent payments must be manually invested into yield-generating assets; no easy way to automate
- Tedious: Manually investing using Dollar-Cost Averaging is time-consuming and dull for those trying to maximize risk:return profile of invested salaries
Now consider a person receiving a streamed salary in USDC, who wants to convert or invest this stream on an ongoing basis. While their incoming salary may be streamed using Superfluid’s primitive, there’s no easy way to automate the outbound conversion and investment of this stream. This person would still have to make manual buys and would face the issues mentioned above.
Enter Ricochet’s passive investing product. Ricochet’s protocol allows consumers to set up an investment stream adjunct to their salary stream. Users commit to long-term wealth building, seamlessly, and ensure they’re maximizing the impact of their hard-earned salary by capturing the benefits of DCA investing.
Let’s walk through a couple iterations of how this can work:
Example 1: You want to stream a portion of your income into crypto asset(s) of your choice using rexMarket
- Employer streams you your salary in DAI, let’s say the rate is 5k DAI/mo.
- You want to invest 5% of that income into ETH and 10% into MKR.
- You start a 250 DAI/mo. stream into the DAI→ETH rexMarket
- You start a 500 DAI/mo. stream into the DAI→MKR rexMarket
- Kick back and relax as Ricochet begins auto-buying ETH and MKR for you
Example 2: You want to stream a portion of your income into a yield-generating portfolio, and automatically reinvest your returns back into the portfolio using rexLP
- Employer streams you your salary in USDC, let’s say the rate is 5k USDC/mo.
- You want to invest 10% of that income into ETH which you will in turn stake in the USDC/WETH Sushi LP for additional yield
- You start a 500 USDC/mo. stream into the USDC→ETH rexMarket
- You begin receiving distributions of ETH
- With the ETH you are receiving, you start a stream of $400 of ETH/mo. into the ETH→USDC/ETH rexLP
- You start receiving distributions of USDC/ETH LP tokens plus your position’s yield (straight to your wallet, no need to claim) which you can reinvest
Bottom Line
Both of these examples show the power of real-time income investment powered by Ricochet. The next generation of web3-based personal finance is here, and it’s cheaper, faster, and more automated than any iteration before it. With networked cashflows, we can automate tried and true investment strategies to effortlessly make your money work for you like never before.
Interested in doing yourself and your employers a favor by getting started with real-time salaries? Check out this step-by-step from our friends over at Superfluid!
Join the community buidling away at real-time investing!
We’re a lot of fun.
