RedStone launches DeFi settlement layer for RWA collateral

Oracle provider RedStone (RED) has launched RedStone Settle, a settlement layer designed to enable the use of real-world asset (RWA) tokens as collateral in DeFi. According to Cointelegraph, the solution aims to address a key structural limitation in the sector. While traditional DeFi protocols rely on immediate liquidation for risk management, RWAs typically require a redemption period of 60 to 180 days, restricting their use as collateral. RedStone Settle is designed with an on-chain auction mechanism that activates during liquidation events. This could potentially unlock an estimated $30 billion in idle RWA assets for use in the DeFi market and allow investors to secure more efficient financing against their income-generating assets.