ERC777 in Super Tokens
What is ERC777 and how is it applied in Super Tokens
What's an ERC777?
ERC777 is a token standard that extends the existing ERC20 standard to allow send/receive hooks as well as operator accounts.
Send/Receive Hooks
ERC777 tokens allow senders and recipients to define hooks which enact custom logic upon the sending or receiving of the ERC777 token.
There are two hooks - tokensToSend and tokensReceived.
tokensToSendis implemented by the sending accounttokensReceivedis implemented by the receiving account.
When transferFrom or send on the ERC777 token is called to move tokens between accounts, the code in these hooks kick in.
You could imagine tokensToSend containing logic that handles what to do when tokens are sent and tokensReceived containing logic handling what to do when tokens are received.
Operators
An account may set operator accounts using the authorizeOperator function. Operators are able to call the operatorSend function to move tokens on behalf of an account. In doing so, they trigger the tokensToSend and tokensReceived hooks just like a normal send from a non-operator account.
This is in contrast to how with ERC20 tokens we can give any account an allowance with approve and that account can use transferFrom to move tokens on your behalf up until a set allowance. An ERC777 operator is able to use operatorSend to move as many tokens as it sees fit with custom logic set in the tokensToSend hook.
Note that the ability to use approve to set transfer allowances is still available in ERC777, so you can configure both operators as well as allowances.
How is The Super Token ERC777 Implementation Different?
The Super Token overrides transferFrom on the ERC777 such that it does not trigger any hooks but leaves the send function as is.
For example, you can see the send function exposed on the USDCx Super Token interface HERE on Polygonscan.
Example: Using Send to Interact With TOGA Contract
The TOGA Contract lets an account stake their Super Tokens in it to become a Patrician (like a "liquidator of choice") for the Superfluid Protocol.
In order to stake your Super Tokens, you use send to move tokens into the TOGA contract. The TOGA contract reacts to the incoming tokens with its tokensReceived hook. Using transfer or transferFrom will not work!
The tokenReceived hook engages code which determines if your stake was enough to become the Patrician and also picks out some optional user data which lets you customize the exit rate of the position (read more in Liquidations & TOGA).
ERC777 Resources
Ethereum.org's description of the ERC777
More formal description in EIP-777
See the transferFrom function code on OpenZeppelin's ERC777 contract
See the SuperToken code and how it utilizes ERC777
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