RedStone launches a settlement layer to address the RWA liquidity mismatch issue in DeFi lending.

CoinFeed reported on April 29th, citing Cointelegraph, that decentralized oracle provider RedStone has launched a new settlement layer, RedStone Settle, designed to address the liquidity issue of tokenized real-world assets (RWAs) as collateral in DeFi lending. Current DeFi lending platforms rely on near-instantaneous liquidation mechanisms, while RWA redemption periods typically range from 60 to 180 days. This mismatch limits the use of RWAs as collateral. RedStone Settle introduces an on-chain auction mechanism, allowing liquidity providers to immediately purchase positions while assuming the risk of delayed redemption of the underlying assets. RedStone states that this solution could unlock over $30 billion in tokenized RWA currently idle in DeFi.