You can't make Dash into a side-chain, it's immune to that. The economic model won't function properly on a side chain and whole thing will be insecure. Who's paying the masternodes an incentive, where is that money coming from?

I understand what you're saying, but I think he was talking about sidechains connecting on either end to Dash (or other coin's chain) and Bitcoin, allowing for distributed exchanges.

Where you buy, momentarily, into the side chain to switch from one coin to the other, and the "price of a side chain "coin" would be based on the exchange rate agreed to. There would be no holding of this sidechain coin, it's only a unit of transfer. I don't know if I'm making sense, but I think this is what he was talking about in part of what he said, though he also suggested new coins could be created off a sidechain of the Bitcoin Blockchain, thus inheriting Bitcoin's security. Two different points. Unless I understood him incorrectly??
This is one way to do it, however that requires us to hard fork and allow them to create coins out of thin air in our blockchain (I don't have a problem with that part theoretically, being that the coins would be tied directly to a proof-of-burn in the Bitcoin blockchain). However, here's a problem with doing that, for example, what if a whale brought over 75M worth of Bitcoin and instantly controlled 75% of our network's masternodes (with our market cap at 25M)? That sounds like a sybil attack vector.
If they tried to buy the 75M from a decentralized/centralized exchange, they would simply run out of money.