Thread by @litocoen

1/ I explained #DeFi to my brother this week-end.

He has been working as a bonds trader for many years.

He got it and liked it (invested stablecoins in @iearnfinance, checking his gainz on @zerion_io every 2 secs

But..

2/

But one of his criticisms is that it's a self referential system.

There's DEX's and lending platforms and ofc these protocols and their tokens are worth SOMETHING.

Afterall, their real world counterparts like @Fidelity or @FundingCircleUK are also worth something.

But..

3/ on the stock exchange you can buy stocks of co's that produce real cashflows.

Do these cashflow-producing assets exist in the DeFi world?

At the moment, we see an explosion of new DEX's (spot, perpetuals, margin etc.) and lending platforms.

4/ All of them issue their native token, which you can then trade, borrow & lend in these various protocols.

The main reason why people want to borrow these tokens is to get leverage. i.e speculating on higher prices.

but..

5/

We need more REAL use cases and REAL assets on TOP of this lending and trading infrastructure.

A few examples:

#Bitcoin is digital gold (scarce)

#ETH is digital oil and soon a capital asset

#DAI is an uncensorable dollar for people in countries with high inflation

6/ @synthetix_io allows trading of synthetic assets such as OIL and GOLD

@AaveAave will soon allow to borrow against tokenized house shares via @RealTPlatform & credit delegation will allow unsecured loans (maybe to users in emerging markets?)

Are there more of these examples?

Some thoughts?

@lawmaster @kaiynne @AndreCronjeTech @sassal0x @RyanSAdams @StaniKulechov @DegenSpartan @Arthur_0x @itamarl