Viewpoint | Synthetic assets and values ​​on Ethereum

Ryan Sean Adams:

I would like to contact you with some details to talk briefly about the synthetics on the Ethereum and how these assets affect the value of ETH.

1/ In the traditional financial industry, the scale of synthetic assets is very, very, very large.

Go to this website ( ) and mix to the bottom to see the scale of the synthetic assets:

(The global derivatives market is $544 trillion, more than double the size of the global real estate market ($217 trillion) and more than twice the size of the global debt market ($215 trillion).

2/ Synthetic assets simulate the situation in the financial industry. DAI is a good example of a cryptographic synthetic asset that mimics the price of the dollar, but it is actually a debt generated by ETH pledge.

3/ At Ethereum, you can create synthetic assets of all types of assets, just a token. This morning, I created a synthetic asset of TESLA (Tesla) on the test network's UMA contract. The price of this asset will change with the price of Tesla. You can also do this, gold, oil, short-term national debt, you can. All you need is a price oracle.

4/ Publishing synthetic assets is as simple as opening a Youtube channel. This means that a Thai child can buy and sell Tesla shares! As long as there is an internet connection, she can do these things without the need for a brokerage firm or a bank. An Ethereum address, unimpeded. Still not finished, she can also create her own synthetic assets and then sell them.

5/ If synthetic assets have a large share of the traditional financial industry, will it gain a bigger share in a world where trading channels are more equal? Tera level, or ten trillion?

6/ Then the focus is coming. To make synthetic assets into untrustworthy assets that don't require banks to run, you have to endorse them with trust-free collateral. If my Tesla currency is endorsed with USDC, it may be destroyed by Coinbase. But what if my Tesla currency is collateralized with ETH or DAI? That is unstoppable, there is no bank anything.

7/ ETH The only trust-free value store on the Ethereum. There is only ETH. Why is there no DAI, because it is just ETH stabilized by mechanism. Therefore, in order for the trust-free synthetic assets to continue to grow, the value of ETH must also increase. The big probability is this.

Moreover, if the demand for trust-free synthetic assets increases, the value of ETH will also rise. The big probability is this.

8/ This will make the untrusted synthetic asset a powerful booster for ETH prices. And no one has discussed this yet. The current market also uses usefulness to estimate ETH, but people who observe it carefully know…

ETH is a currency.

Original link: Author: Ryan Sean Adams Translation: A Sword

(This article is from the EthFans of Ethereum fans, and it is strictly forbidden to reprint without the permission of the author.