So I was sitting in for a lecture on decentralised finance and I got the full idea of how it works. This brought a whole new level of depth to my world

So I have a world where magic exists and I kinda can't believe I never thought about how the magic world would work economically. I've had the most basic ideas for sometime but this lecture really helped me understand what magic would mean for the economic systems of the mundane world. <br><br>In my world the decentralised finance system is run by a fellow who for all intents and purposes is a lesser god. He's omniscient, omnipresent (as far as anyone knows) and his power is so profound he could end human civilisation with a word. So all these people in the magical world have decided to put their faith in an AI because of the fact that the people of the mundane world are incapable of a universal currency. <br><br>So people put their money into the AI and it exchanges the value of the money into magic. A magical currency that can be transferred to anyone anywhere in the world instantaneously. Everyone in the magical world has full faith in this system because the AI is all powerful and decentralised. It has no central governing body to infiltrate and manipulate and it is impregnable to all attacks. <br><br>This fellow has also created a second system called "mirage decentralised credit" . He essentially gives people this credit in full knowledge that they don't have the money to pay it back. This whole system has been set up so that people are not limited by their financial means and they can use magic for whatever they want. <br><br>So with this system being risk free the magical world has made all sort of large bets on things like wars . Because the AI knows how every event in the world will play out the magical world has essentially bet on the outcome of wars and the AI will pay out to the winners when the war is done. <br><br>The mundane world has no idea this is happening and when they lose a war they get screwed out of all their money and resources. <br><br>The AI also knows the outcome of every trade and can tell people how much of a profit they'll make on a trade. It can also run futures and options. It's all a massive game to the AI and the people of the magical world. It has also led to the development of the mystical arts of algamancy and risk prediction. <br><br>I'm still playing with the numbers but I'm thinking the AI is granting magical credit of around 20-30 times the whole of the mundane worlds GDP. It's essentially providing unlimited credit to everyone in the magical world. <br><br>I'm not sure where this idea is going to go, but I'm working on it. I just wanted to share my idea with you lot and see if you have any thoughts on it.