A new report from RedStone, the modular oracle provider that supplies price feeds to DeFi protocols, found that tokenized gold assets held their ground during what traders have dubbed the “Warsh shock,” a precious metals sell-off that saw gold prices plummet more than 11% intraday and silver crater 31.4%. The tokens tracked their underlying assets accurately, DeFi positions didn’t blow up en masse, and the infrastructure quietly proved it could handle real volatility.
What happened during the Warsh shock
The two dominant tokenized gold products, Tether’s XAUT and Paxos’ PAXG, both tracked the spot price decline in near real-time. No significant depegging. No oracle failures feeding stale prices into lending contracts. No cascading liquidations that spiraled beyond what the underlying move warranted.
RedStone supplies both price feeds and Proof-of-Reserve data for real-world assets and yield-bearing collateral across multiple blockchain protocols. During volatile moments, oracle accuracy isn’t a nice-to-have. It’s the difference between orderly liquidations and protocol insolvency.
Growth numbers tell a mixed story
