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DAI is an example of a synthetic in crypto. It simulates USD price but is actually a debt note for ETH
This means a kid in Thailand gets the ability to buy TESLA upside
All she needs to an internet connection
Just an Ethereum address
Oh, and she can create her own synthetic too. And sell it
Tens of trillions?
For the synthetics to be trustless and not dependent on a bank they need to be backed by trustless collateral
If my TESLA token is backed by USDC it can be thwarted by Coinbase
But if my TESLA is backed by ETH or DAI? It can't be stopped. It's bankless
What about DAI? That's stabilized ETH
So in order for trustless synthetics to grow the value of ETH must grow. By a lot
And if the demand for trustless synthetics grows then the value of ETH will grow. By a lot
And no one is talking about it
The market is still valuing ETH as a utility, but the people paying attention know...
ETH is money