TechFlow News, April 29: According to a Cointelegraph report, decentralized oracle provider RedStone has officially launched RedStone Settle—a settlement-layer product designed for decentralized finance (DeFi)—to address structural barriers hindering the use of tokenized real-world assets (RWAs) as collateral in lending protocols.
The product’s core mechanism is an on-chain auction: when a lending protocol triggers a liquidation event, liquidity providers can immediately step in to purchase the relevant positions, supplying instant liquidity to the protocol while independently bearing the risk of delayed redemption of the underlying assets. This approach aims to bridge the mismatch between the near-instant liquidation required by DeFi platforms (e.g., Aave) and the typical 60- to 180-day redemption periods associated with RWAs—including tokenized funds and bonds.
RedStone states that this solution could unlock over $30 billion worth of currently idle tokenized RWAs in DeFi, enabling users to borrow more efficiently against yield-generating positions. According to RWA.xyz data, the current market size of tokenized RWAs—excluding stablecoins—exceeds $30 billion, dominated primarily by U.S. Treasury exposures and private credit products.
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