**[RedStone Launches Settlement Layer to Address Liquidity Gap in DeFi Lending for RWA]** Deep Tide TechFlow reports on April 29, according to Cointelegraph, decentralized oracle service provider RedStone has officially launched its settlement layer product, RedStone Settle, aimed at addressing structural barriers when tokenized real-world assets (RWA) are used as collateral in lending protocols. The core mechanism of this product is on-chain auctions: when a lending protocol triggers a liquidation event, liquidity providers can immediately step in to purchase the relevant positions, offering instant liquidity to the protocol while assuming the risk of delayed redemption for the underlying assets. This initiative seeks to bridge the mismatch between the near-instant liquidation required by DeFi platforms (such as Aave) and the typically lengthy redemption cycles of RWAs (including tokenized funds and bonds), which can range from 60 to 180 days. RedStone stated that this solution has the potential to activate over $30 billion worth of tokenized RWAs currently idle in DeFi, enabling users to borrow more efficiently against yield-generating positions. According to data from RWA.xyz, excluding stablecoins, the current tokenized RWA market exceeds $30 billion in size, primarily dominated by U.S. Treasury exposures and private credit products.