Trouble is, I don't see how smart contracts validate the actual presence of assets like stocks, bonds and gold underneath. There's obviously going to be centralization and trust necessary, in which case I might as well rely on regulated financial intermediaries exchanging real dollars rather than hold a synthetic dollar with the downside counterparty and residual value risk associated with holding derivatives linked to a basket of goods but no upside.

I'm also struggling to understand the incentive for people to overcollateralize to receive tokens notionally equivalent to dollars and how that's convenient