RWA Collateral Risk ยท Oracle Gaps

The Liquidation Blackout Window

Tokenized treasuries and real estate report their value once a day, sometimes once every two. When the market moves faster than the oracle refreshes, a loan can already be underwater while the protocol still reports it as healthy. Gold doesn't have that problem, because gold barely stops trading.

Choose Collateral Type
Market price shock (applied instantly, off-chain) -8%
No move-30% crash
Hours since the oracle last refreshed 6hrs
Just refreshed24 hrs stale
Reported Value vs. Real Value
Oracle-reported value Actual market value Liquidation floor
70%
Real LTV Right Now
70%
LTV The Protocol Sees
$0
Unprotected Exposure
Why Gold Doesn't Blackout

Spot gold trades nearly around the clock, five and a half days a week, so a lending desk pricing gold collateral is rarely more than minutes behind the market. Treasuries and tokenized real estate inherit their underlying market's clock. Nights and weekends turn into blind spots where a loan can slide past its liquidation floor with nobody able to act on it.

RealWorld