RedStone co-founder Marcin Kaźmierczak has raised concerns about potential arbitrage risks associated with tokenized real-world assets (RWAs) during weekends. As traditional stock markets close, crypto markets continue to operate, potentially causing price discrepancies between on-chain and real-world stock values. This situation could lead to arbitrage opportunities or under-collateralization risks in decentralized finance (DeFi) protocols.
Kaźmierczak suggests that a modular oracle architecture could mitigate these timing issues, as most current protocols still depend on outdated 'Push' models. The example of a tokenized Tesla stock trading on a decentralized exchange while the Nasdaq is closed illustrates the potential for significant price dislocations.
RedStone Warns of Arbitrage Risks in Tokenized Stocks Over Weekends
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