Super Tokens

A Super Token is an ERC-20 compatible token that has been upgraded with the Superfluid Framework to enable continuous, real-time value streams and programmable finance logic. Unlike standard tokens transferred in discrete lumps, Super Tokens can be programmed to flow between accounts at a specified rate per second, enabling use cases like real-time salaries, subscriptions, and recurring payments that settle instantly on-chain. This is made possible by the underlying Constant Flow Agreement (CFA) smart contract, which manages these ongoing streams without requiring repeated transactions.

The core innovation is native yield distribution. Super Tokens can be "wrapped" versions of underlying assets (like Super DAI or Super ETH) that automatically accrue yield from integrated DeFi protocols. This yield is distributed pro rata to all token holders in real-time through a continuous rebasing mechanism, meaning a holder's balance increases every second without manual claiming. This creates money streams where the transferred value can itself be earning yield up to the exact moment it is received by the counterparty.

Technically, creating a Super Token involves upgrading an existing ERC-20 via a deterministic, permissionless wrapper contract or minting a new pure Super Token without an underlying asset. The Superfluid protocol's Super Token Factory ensures each token adheres to the required interfaces for flow operations and balance accounting. Key functions include createFlow, updateFlow, and deleteFlow to manage streams, and getNetFlow to query an account's real-time net inflow or outflow rate.

Primary use cases extend beyond payments to DeFi composability. Super Tokens enable streaming liquidity into lending pools, real-time vesting for token allocations, and programmable treasury management where funds can be continuously allocated across multiple streams. Their instant settlement and constant balance updates also make them foundational for Real-World Assets (RWA), allowing for the tokenization of cash flows from invoices, royalties, or rental income that distribute earnings continuously to investors.

When interacting with Super Tokens, users must understand the Superfluid Console and Subgraph for monitoring active streams, and be aware of gas implications for flow operations. A critical concept is the liquidation mechanism: if an account's balance cannot cover its outgoing streams, a liquidation event is triggered where a liquidator can settle the deficit for a reward, ensuring system solvency. This requires users to maintain sufficient balances or set up automated top-ups for their streaming accounts.

A Super Token is a programmable ERC-20 wrapper token that enables native, on-chain value streaming and automated batch operations. At its core, it is a standard token that can be "upgraded" via a canonical wrapper contract to gain new capabilities, primarily the ability to be continuously transferred at a specified rate per second—a function known as streaming. This transforms static token holdings into dynamic flows of value, enabling use cases like real-time salaries, subscriptions, and vesting schedules that execute autonomously without repeated manual transactions.

The operational mechanics rely on two key concepts: the Super Token standard and the Superfluid Protocol framework. When a user wraps a base asset like DAI or ETH, they mint a corresponding Super Token (e.g., Super DAI). This token inherits the ERC-20 interface but is augmented with the createFlow and deleteFlow functions. A stream is established by calling createFlow, which specifies a sender, receiver, and a flow rate (e.g., 0.0001 tokens/second). The protocol's constant flow agreement (CFA) module then ensures the receiver's balance is virtually updated in real-time, with the actual settlement of net balances occurring upon interaction with the contract, optimizing for gas efficiency.

Under the hood, the system maintains a real-time balance accounting model. Instead of moving tokens with each second, it calculates a net flow balance for each account. Your actual, transferable balance is your underlying token amount minus any outgoing stream commitments. This is checked via the realtimeBalanceOf function. The protocol uses a Superfluid Host contract as a central router and Super Apps—smart contracts that can react to these streams—to create complex, automated financial logic. For example, a streaming payment could automatically trigger a swap or a loan repayment within the same transaction.

Key technical properties include composability (streams can interact with other DeFi protocols), gas efficiency (streams run without per-second transactions), and security (funds are custodied in the wrapper contract, not a third party). Common operations are upgrading a token via the canonical wrapper, creating and updating streams, and interacting with Super Apps. The entire system is secured by the underlying blockchain, with governance often managed by a Super Token's associated DAO or the core Superfluid protocol developers.

A Super Token is a programmable token standard, specifically an extension of ERC-777, that natively embeds real-time accounting for continuous value streams such as salaries, subscriptions, and rewards. Unlike static tokens, a Super Token's balance for any holder is a dynamic function of its underlying base token amount and any accrued yield or deducted distributions, updated automatically with each transaction. This is made possible by a core accounting primitive called Real-Time Balances, which calculates a user's balance as balance = underlyingAmount + netFlowRate * timeDelta, where the netFlowRate is the sum of all incoming and outgoing streams.

The standard introduces two fundamental operations: streaming and batch calling. Streaming is facilitated by the createFlow, updateFlow, and deleteFlow functions, which establish a persistent, permissioned transfer of value per second between accounts. Batch calling, enabled by the batchCall function, allows multiple operations—like approving, transferring, and creating streams—to be executed in a single atomic transaction, significantly improving user experience and gas efficiency for complex DeFi interactions. These features are secured by ERC-777 hooks, which allow tokens to react to being sent or received.

Under the hood, Super Tokens are typically wrappers for existing ERC-20 tokens, known as the underlying token. When an ERC-20 is upgraded to a Super Token, it gains the streaming capability while remaining fully compatible with existing ERC-20 infrastructure. The protocol manages the Super Token's Total Supply separately from the sum of its underlying tokens held in its vault to account for the "virtual" balances created by ongoing streams. This design ensures that while value is continuously moving, the token's total supply and the solvency of the system are always verifiable on-chain.

A key application is the Constant Flow Agreement (CFA), a smart contract framework built on the Super Token standard that formalizes the rules for creating and managing streams. The CFA defines the flowRate parameter, enforces limits, and triggers the real-time balance updates. This enables use cases like token streaming for salaries (e.g., paying a developer 10 DAIx per second), subscriptions (e.g., a streaming service costing 5 USDCx per month), and composable DeFi where yield from a lending protocol can be automatically streamed to a treasury in real time.

For developers, interacting with Super Tokens requires understanding the distinction between balanceOf (which returns the dynamic real-time balance) and the underlying accounting. Common patterns include wrapping tokens to create the Super Token version (e.g., DAI to DAIx), integrating with the batch call for efficient user onboarding, and listening for flow events (FlowCreated, FlowUpdated) to track streaming activity. The standard's reliance on ERC-777 also means it inherits both its advantages—like operator permissions and send/receive hooks—and the need for careful consideration of security aspects related to those hooks.