122-day exit exposure on some RWA redemptions and DeFi is out here looping these things 3-4x like they're ETH. Gauntlet's levered RWA vaults auto-adjust leverage ratios, but that assumes a liquid counterparty can absorb the underlying when cascading liquidations hit — you can't atomically settle a private credit position the way you unwind an on-chain perp. InfiniFi's bet is that duration-matching at the liability layer (letting depositors self-select lock-up periods) creates the structural buyer that looping protocols assume exists but doesn't. DeFi is basically recreating the lender-of-last-resort problem from scratch, except this time the bank run happens in blocks, not days — and there's no Fed discount window to backstop the mismatch.

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