Overview
- RedStone announced on Tuesday that its Settle service is being integrated with Centrifuge’s HYB tokenized U.S. high-yield bond fund to allow same-block (T+0) exits while the fund’s formal redemption process remains T+3.
- The system runs roughly 300 millisecond offchain auctions where whitelisted, KYC-verified liquidity providers called solvers bid to buy fund units and then execute the sale in one atomic onchain transaction to prevent front-running and failed settlements.
- A winning solver immediately pays the seller onchain, holds the HYB units and later redeems them through the fund’s standard T+3 process while keeping the auction discount as compensation.
- Auctions use a fundamental price feed that starts from administrator-derived NAV, include bonded solver deposits to deter failures, and rely on prefunded vaults and initial partners such as Symbiotic to backstop shortfalls; access remains permissioned.
- The integration aims to make institutional tokenized assets like HYB usable as near-instant DeFi collateral and to reduce liquidation uncertainty for lending markets, but it depends on accurate NAV oracles and active solver participation for reliable operation.