Ⅰ. INTRODUCTION
That suggests that what you fear most of all... is fear itself
——Lupin
In this best era, under the opportunity and challenge, we’ll open open the door of democracy for decentralized finance with the innovation of Magic Cube project.
In the 18th century, the enactment of Code of Hammurabi in n ancient Babylon gave birth to the word “finance”, opening the curtain on the noisy and exciting history of human wealth.
Today's cross-border financial activities are characterized by the rapid growth of global trading market of securities formed by the daily buying or selling of multinational stocks and bonds. The scale is keeping expanding: According to a chart from Deutsche Bank’s Torsten Slok, the value of global equities in early 2019 was just under $70 trillion but it surpassed $85 trillion at the end of the year, with an increase of $17 trillion from the previous year.
In terms of overall competitiveness ranking, the capital markets of major countries and regions around the world can be roughly divided into four tiers.
Tier/Ranking
Overall Competitiveness Ranking In Order
Tier One / Top 1-2
USA, UK
Tier Two / Top 3-9
Japan, Canada, China, Australia, China Hong Kong, Korea and France
Tier Three / Top 3-9
Germany, Switzerland, China Taiwan, Singapore, Brazil and India
Tier Four / Top 3-9
Spain, Russia, South Africa, Mexico and Argentina
In terms of the components of competitiveness, USA and the UK excel in the institutional environment, market size, market function and market quality. Japan performs well in the two dimensions of institutional environment and market size. Other countries and regions have their own characteristics, with common law markets such as Canada, Singapore and Hong Kong, China, ranking high in terms of institutional environment and market function.
"The bell of NASDAQ is ringing, but how many people can listen to that beautiful melody?”
In this trillion-dollar capital market, countless people dream of entering and getting a slice of the cake. But the harsh reality is that the financial industry is in fact essentially closed, shielding some from participation that even a small group of people can only try specific restricted methods of access. Financial assets such as stocks, bonds and derivatives, for example, remain a challenge for much of the world outside of the USA and Europe.
We believe that a necessary nature of the financial system is being open, unrestricted, and free access to financial assets. That's why we propose the Magic Cube protocol, which allows anyone to issue and trade decentralized protocols that track synthetic assets, breaking down factors such as geographic barriers and policy interventions to participate in globalized capital markets. We provide balanced incentives for markets including minting, trading, asset staking, giving financial players around the world equal access to the profits of capital.
In this Lightpaper, we describe how tokenization is an important way to democratize financial assets, and propose an implementation of synthetic tokens (tokens that track the prices of real-world assets without physical backing) and the powerful "MAGIC" ecosystem to promote the development of human society with this great innovation.
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