Thread by @shivsakhuja

Here’s an infographic that shows the estimated size of various asset classes.

Crypto is only $2.5T

All these assets combined are > $500T.

Most of these assets will get tokenized over the next decade or two, and the protocols that tokenize them will capture a lot of that value.

1/ Why would we want to tokenize assets like stocks?

– Globally accessible, tradeable 24/7/365
– Transparency
– Verifiable ownership (unlocks doors like voting / rewards)
– Programmable asset is infinitely more useful (collateral, derivatives, automation, direct transfers, etc)

2/ Why tokenize real-estate?

– Fractionalized investing
– Globally accessible, tradeable 24/7/365
– Diversification through bundling
– Add liquidity to illiquid market
– Reduced friction of transactions
– Plug into smart contracts to collateralize, create derivatives, etc

3/ The general idea is that programmable assets that can plug into smart contracts are infinitely more useful than the legacy versions of these assets.

4/ For example: @mirror_protocol already allows users to trade tokenized synthetic stocks

Unlike regular stocks on an exchange like the #NYSE, tokenized stocks can be:

- Traded globally 24/7/365 by anyone

- Farmed for yield (20-30%+ currently)

- Used in smart contracts

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5/ I'll be posting a much more detailed thread about @mirror_protocol in the coming week, including:

- A step-by-step guide on how it works

- How you can to use it to farm for rewards.

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Stay tuned! ✌️