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Solana Weekly
Solana Weekly #115 - Redstone Is Bringing Private Credit and T-Bills to Solana DeFi
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Solana Weekly #115 - Redstone Is Bringing Private Credit and T-Bills to Solana DeFi

Comprehensive Episode Summary

Guest Profile

Marcin - Co-founder and GTM lead at Redstone, crypto veteran since 2017 with background in quantitative economics. Previously worked at Google Cloud before founding Redstone in 2020.

The Oracle Infrastructure Revolution

Redstone's Modular Architecture Redstone built a fundamentally different oracle system designed for scalability from day one. Unlike traditional models that were difficult to scale across networks and assets, Redstone uses a modular architecture with four modules—keeping three off-chain to minimize integration complexity. This design enables rapid deployment across new blockchains and virtual machines.

Multi-Chain Pioneer

  • First oracle on many non-EVM networks including TON (Telegram), Starknet, and Fuel VM

  • Strategic expansion philosophy: "Go where people want us, not where we force ourselves"

  • 75% of company are engineers, maintaining 100% reliability with zero mispricing incidents

Why Solana, Why Now

Perfect Timing Convergence Redstone's Solana launch aligned with a critical market moment. Their partnership with Securitize to serve major tokenized funds (BlackRock BUIDL, VanEck, Apollo, etc.) coincided with Solana's emerging RWA momentum through protocols like Camino, Drift, and Jupiter.

Foundation Support Meeting Lily (Solana Foundation director) at Binance Blockchain Week in Dubai catalyzed the expansion, providing technical resources and ecosystem connections for smooth integration.

Real-World Assets Explained

Two Flagship Products

  1. Tokenized Treasury Bills (T-Bills)

    • Low-risk, yield-bearing government securities

    • Principle should always appreciate (barring systemic USD issues)

    • Considered equivalent to cash in accounting (0-3 month bills)

  2. Apollo's Diversified Credit Fund (Tokenized as ACRE)

    • Private credit outside traditional banking system

    • Example: Entrepreneur needs $10M for factory railway, banks reject due to complexity

    • Apollo intermediates: lenders provide capital at 8%, borrowers pay 12%, Apollo manages 4% spread

    • Involves real risk of default, but diversified across 100-1000 loans

Access Revolution

  • Traditional minimum: $5-10 million

  • Tokenized minimum: $50,000 (100x reduction in barrier to entry)

  • Global accessibility without complex traditional finance onboarding

The Technical Innovation: sACRE

Security vs. Utility Challenge ACRE is a security token, making it non-transferable and unsuitable for DeFi liquidations. Securitize created an elegant solution:

  • sACRE: Non-security wrapper around ACRE

  • Enables DeFi integration while maintaining regulatory compliance

  • Liquidators interact only with sACRE, never touching the underlying security

  • Vault system allows redemption back to USDC when needed

DeFi Use Cases and Looping Strategies

The Looping Mechanism

  1. Deposit $1M worth of sACRE as collateral

  2. Borrow $500K USDC (50% LTV for safety margin)

  3. Buy more sACRE with borrowed USDC

  4. Repeat process until hitting minimum investment thresholds

  5. Amplify exposure while maintaining liquidation safety

Risk Considerations

  • Platform risk (Drift/Camino vulnerabilities)

  • Asset price risk (private credit can decline unlike T-Bills)

  • Liquidation risk if looped too aggressively

  • Need for proper risk management and position sizing

Institutional Adoption Pathway

Baby Steps Philosophy Unlike crypto's "10x or bust" mentality, institutions take measured approaches:

  1. Current: Basic tokenization and custody

  2. Next: Simple lending and structured products

  3. Future: On-chain hedge funds and complex derivatives

Benefits Driving Adoption

  • Broader Access: Geographic and capital barriers removed

  • Secondary Liquidity: Instant swaps vs. 90-day redemption periods

  • DeFi Composability: Integration with lending, looping, structured products

  • Transparency: On-chain visibility vs. opaque traditional systems

Market Lessons and Risk Management

Learning from Terra/Anchor

  • Size caps prevent systemic overheating

  • Transparency requirements for risk assessment

  • Multiple audits and conservative approaches

  • Recognition that 20% yields were unsustainable

Current Systemic Risks

  • Staking derivatives pose the largest potential systemic risk

  • Liquid staking tokens widely used as collateral across DeFi

  • Any major exploit could cascade across ecosystem

Future Roadmap

Immediate Developments

  • Additional Solana-native stablecoin feeds

  • More yield-bearing asset integrations

  • Jupiter's "Drip/Plant" lending protocol (partnership with Ethereum's Fluid)

Long-term Vision

  • Yield-bearing stablecoins as mass adoption driver

  • 4-6% yields as the "sweet spot" for user interest

  • Cross-chain collaborations and composability

  • Gradual expansion of on-chain institutional products

Builder Ecosystem

  • Testing available at app.redstone.finance (Push → Solana)

  • Open communication channels via Telegram/Discord

  • Custom data feed development for specific use cases

The Bigger Picture

Adoption Paradigm Shift Traditional crypto adoption focused on retail users buying NFTs and meme coins. RWA adoption brings institutional capital seeking familiar products with blockchain benefits—better access, liquidity, and composability.

Global Financial Rails Redstone's vision extends beyond individual assets to creating seamless global financial infrastructure. Current traditional systems are siloed by country/region, requiring inefficient bridges. Blockchain technology enables truly global, instantaneous settlement.

Competitive Collaboration The Jupiter-Fluid partnership exemplifies healthy ecosystem growth—established players collaborating rather than zero-sum competing, recognizing the early-stage nature of the overall market.


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