RedStone Settle Revolutionizes NYLIM's HYB with Instant Exits and Liquidations

RedStone has revolutionized how NYLIM's HYB operates on-chain by turning a traditionally slow credit wrapper into something DeFi can use. The portfolio and risk framework of HYB remain unchanged from the off-chain fund, but its wrapper still follows a T+3 settlement cycle.

In traditional finance, this delay is routine; in DeFi, it breaks composability, blocking instant exits and limiting collateral utility. RedStone Settle is built to eliminate that bottleneck by introducing a Dutch auction settlement system that allows HYB holders to exit immediately.

KYC-verified solvers compete to provide capital upfront, taking on the underlying position and waiting through the fund's redemption cycle. The holder receives USDC at T+0, while the solver absorbs the delay. This mechanism creates a defined discount exit path for HYB holders, no longer forcing them to wait up to five business days for the fund to redeem.

RedStone Settle also enables T+0 liquidations for lending protocols that accept HYB as collateral. By triggering its auction the moment a position crosses its liquidation threshold, RedStone resolves the close at T+0. This unlocks HYB as real DeFi collateral rather than a static, buy-and-hold token.