Oracle provider RedStone (RED) has launched RedStone Settle, a payment layer that enables real-world asset (RWA) tokens to be used as collateral in DeFi. According to Cointelegraph, this solution focuses on addressing the structural limitations of DeFi. Existing DeFi platforms adopt an immediate liquidation structure for risk management, but RWAs have a redemption period of 60 to 180 days, which has limited their use as collateral. RedStone Settle is designed with an on-chain auction mechanism that activates upon liquidation, and it is expected that approximately $30 billion worth of idle RWA assets can be utilized in the DeFi market through this. Furthermore, investors are expected to be able to raise capital efficiently based on income-generating assets.
