According to ChainCatcher news, CoinDesk reported that Marcin Kaźmierczak, co-founder of the Oracle provider RedStone, warned that the difference between 24/7 trading in the crypto market and the weekend closure of traditional markets could pose significant risks as the trend of tokenization of real-world assets (RWA) rises.
When the traditional market closes while on-chain trading continues, a significant event over the weekend (such as an explosion at a Tesla factory) could lead to a price discrepancy between tokenized stocks and the actual value on NASDAQ. Most Oracles freeze price data after 4 PM on Fridays in the US market and do not resume updates until Monday, which could result in on-chain protocols trading with outdated prices, creating arbitrage opportunities or causing lending protocols to be under-collateralized.
As more complex asset portfolios go on-chain, this issue may become more severe, requiring a more robust Oracle architecture to manage the gap between open protocols and closed traditional markets.
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Viewpoint: The tokenization of real assets faces the risk of price misalignment over the weekend.
According to ChainCatcher news, CoinDesk reported that Marcin Kaźmierczak, co-founder of the Oracle provider RedStone, warned that the difference between 24/7 trading in the crypto market and the weekend closure of traditional markets could pose significant risks as the trend of tokenization of real-world assets (RWA) rises. When the traditional market closes while on-chain trading continues, a significant event over the weekend (such as an explosion at a Tesla factory) could lead to a price discrepancy between tokenized stocks and the actual value on NASDAQ. Most Oracles freeze price data after 4 PM on Fridays in the US market and do not resume updates until Monday, which could result in on-chain protocols trading with outdated prices, creating arbitrage opportunities or causing lending protocols to be under-collateralized. As more complex asset portfolios go on-chain, this issue may become more severe, requiring a more robust Oracle architecture to manage the gap between open protocols and closed traditional markets.