Sablier, a payment protocol, allows anyone to send continuously streamed payments around the world by leveraging the functionality of Ethereum. In the latest, users can now stream interest-bearing tokens, like CHAI.
Earn Income in Interest Bearing Tokens
On Jan. 16, Sablier announced the integration of synthetic USD (sUSD), wrapped BTC, wrapped ETH, and CHAI as streamable cryptocurrencies over the dApp.
Earning income in sUSD, in particular, allows for the seamless exchange of the tokens for other synthetic assets like sXAU (gold). Effectively, users are getting paid in a currency that can be easily invested in other assets.
The integration of CHAI is especially unique because it allows users to receive their income in an interest-earning asset. It is akin to earning income in United States government treasury bills.
For the uninitiated, CHAI is DAI wrapped in Maker Protocol’s Dai Savings Rate (DSR). Instead of locking funds in DSR, one can choose to hold it in CHAI and earn interest without locking up a portion of their funds.
The CHAI token balance stays constant to reflect the amount of DAI deposited, while the price of CHAI increases to reflect the value accrued from interest.
CHAI can be converted back to DAI using their native interface or changed to ETH using Uniswap. This particular offering could gain more traction if CHAI liquidity deepens on DEXes like Kyber and Radar Relay.
Enhancing Financial Security with Real-Time Payments
Payment applications in crypto are plentiful, but very few cater to a wide range of use cases.
Most of these payment protocols focus on enabling one-time payments in a fast and cost-effective manner. Sablier, built by Paul Razvan Berg, is solving a pain point that exists in the payment industry as a whole — not just crypto payments.
If real-time finance ever becomes a thing, job interviews may not be required anymore.
Employers cut to the chase and stream money to several candidates in parallel. Highly efficient filtering w/ little to no downside.
Applicants schedule streams for different jobs in a row.
— Paul, Streamer of Money (@PaulRBerg) January 16, 2020
A startup that’s looking to hire employees can now guarantee monetary security by streaming their salary or wage over a certain period of time. For instance, a small company having a tough time convincing prospective employees of their ability to fulfill their financial obligations can guarantee payments by sending them money second-by-second.
Instead of a one-time payment of, say, 1,000 DAI at the end of the month, the employee will earn 1.38 DAI per hour or 0.231 DAI per minute.
Contractors and freelancers who work on a project-to-project basis will have greater confidence that they will receive their payment on time.
Streaming payments has a plethora of use cases apart from guaranteeing employees timely payments. One could theoretically pay rent to their landlord or repay a loan by deploying a money stream on Sablier.