Tokenize an asset that settles T+2 off-chain, then let it redeem instantly on-chain, and you have created a liquidity mismatch: the vault promises what the underlying can't deliver on demand. Two design responses are converging.
Async settlement:
ERC-7540 splits redemption into request then claim, so the vault can honor real settlement windows instead of pretending everything is T+0. Centrifuge ran this across $1.6B+ in RWA pools before it landed as a reusable building block in OpenZeppelin Community Contracts.Overcollateralization: a parallel ethresear.ch proposal hardcodes 200% collateral to absorb the redemption gap when instant settlement is unavoidable — trading capital efficiency for solvency guarantees.
Takeaway: match your redemption semantics to the underlying's settlement latency. If you inherit
ERC4626 for an illiquid asset, you probably want ERC-7540's request/claim flow instead.Centrifuge / OpenZeppelin · ethresear.ch
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