BlockBeats News, April 29th, Decentralized Oracle Provider RedStone announced the launch of the settlement layer RedStone Settle to address the liquidity gap faced by Real-World Asset (RWA) in DeFi lending. Traditional DeFi protocols rely on almost instant settlement to manage risk, but the redemption cycle of tokenized RWAs (such as funds and bonds) is often as long as 60 to 180 days, causing a mismatch where a significant amount of RWA cannot effectively be used as collateral. This settlement layer addresses this issue through an on-chain auction mechanism: when a liquidation event is triggered, liquidity providers can immediately bid for positions to inject instant liquidity into the protocol, while bearing the underlying asset's delayed redemption risk themselves.
