Synthetic Assets are great and I am all for them but in the end, you do not have underlying ownership of said asset, no shareholder or voting rights. Most importantly, you will not receive dividends from these tokens.
Is there any possibility in the next 10 years of this being bridged somehow? Would like to know your thoughts?
iAssets don’t replace the need for ownership of an underlying asset. They hold unique benefits. If an asset gives special privileges such as voting or staking rights then those privileges can’t be replicated via an iAsset. The only way for you to gain those privileges is to own the asset itself and follow the rules and restrictions that asset has in place.
An iAsset gives you exposure to an asset without the need to own it. It allows you to do things conceptually with an asset that wouldn’t be possible with the asset itself.
In regards to dividends, this is something we’ve thought about. We have some ideas internally we’re working on but haven’t created any formal plans or solutions. It may be possible in the future to use an iAsset to capture value from cash producing assets. There are many factors though to consider. So at launch, no. Possibility in the next 10 years, yes.
It’s a possibility to use a real asset to mint an iAsset. An example could be to transfer BTC from the Bitcoin blockchain and locking it into anetaBTC on Cardano. Then taking anetaBTC and borrowing iBTC against it. This is something we’re considering but haven’t formalized yet.
The ability of any asset that has dividends or income to be reflected in the iAsset once it is “collateralized” would be a key feature in expanding iAsset adoption into numerous asset classes.
I think it’s great to actually owning the asset but let’s be real, in some markets who owns what. I think this this is a good way to get market exposure without jumping through financial hoops.
Well bridging assets from other blockchains is already possible theough wrapped tokens. So if you want to own underlying asset say BTC, you can but wrapped BTC instead of minting iBTC. But I think synthetic asseta have a different economic structure and investment oppurtunities.
Call me stupid but what exactly does"exposure"mean. What is the value of an iasset? What can you do with an iasset that you can’t do with the "real"asset? Are synthetic and fake synonyms?
Well I don’t know what can happen in 10 years but as far as ownership is concerned let’s say you want to buy Tesla stop. Now if you don’t live on USA or not a High networth person who has different avenues to invest in different markets, how many normal people will be able to buy it. If the trade of is that I will be able to invest in them but won’t have ownership or won’t get dividends, I will take it. That’s what synthetics are all about. Bringing you the assets which you normally won’t have the reach to.