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Mento Labs Chooses RedStone From Multiple Oracle Providers

Discover the results of Mento x RedStone Integration

Mento Labs has partnered with RedStone, a revolutionary oracle provider. RedStone offers a scalable, customizable, and decentralized solution that aligns perfectly with Mento’s needs. This collaboration strengthens Mento’s position as a leading stablecoin provider and paves the way for expansion. In an exclusive interview in this case study, the Mento Labs team reveals why RedStone was a clear choice and highlights the seamless integration process.

Mento: Factory for Stable Value Assets

Mento is a decentralized exchange of the automated market maker (AMM) type that operates exclusively on the Celo blockchain. Its primary function is to support the peg of the Celo Dollar (cUSD) to the US Dollar. The protocol enables the creation of stable value digital products, that mimic the value of the underlying asset, i.e. fiat currencies (commonly referred to as ‘stablecoins’). The goal of Mento is to support the real-world adoption of digital currencies by enabling the creation of stable value assets for users around the world. Mento is currently live on the Celo blockchain where it operates the Celo Dollar (cUSD), Celo Euro (cEUR), and the Celo Brazilian Real (cReal). All Mento products are fully collateralized with a diversified portfolio of exogenous crypto assets.

Mento’s Oracle Needs

Mento is a permissionless and decentralized platform that aims to host a large variety of stable value assets of different designs. Such a platform requires a highly scalable, customizable and decentralized oracle solution. The Mento team was looking at many oracle providers but they hadn’t found what they were looking for so they decided to develop their own oracle. Over time it turned out that the in-house solution is hard to maintain and additional safety layers would come at a disproportional cost.

Implemented Solution

Overview chart showing one part of the implemented solution

Mento team came across RedStone Oracles, soon after the first successful launch of their data feeds for DeltaPrime. Flexibility and the highest security standards were key factors for Mento’s oracle decision. RedStone provided Mento with a rigid data quality assurance process, introducing an uncertainty score that will be calculated at the data provider nodes based on: 

  • Scoring system per data source that will take into account a deviation between bid <> ask spread on CEX sources and available liquidity on DEX sources,
  • Cross-source aggregation to weight sources based on the score mentioned above,
  • Additional checks against maximum historical deviations to detect price manipulation attempts.

All of which are sophisticated mechanisms giving additional layers of security to the flow.

The uncertainty score mechanism consists of 3 layers:

  1. Source-specific reliability layer (e.g. bid/ask spread, order book depth to make sure data sources provide reliable data).
  2. Certainty layer (e.g. price difference across price sources to make sure that market certainty/efficiency is sufficiently high).
  3. Consensus layer to make sure all operators agree on reliability, uncertainty and data.

The data feeds will be further aggregated on-chain allowing Mento not only to use the spot prices but also to take account of the accompanying uncertainty scores in a transparent way.

The Future of Mento-RedStone Partnership

Moving forward, both parties plan to expand their implementation to other Layer 1 (L1) and Layer 2 (L2) blockchain solutions, broadening the reach of Mento’s capabilities. Additionally, Mento and RedStone are committed to collaborating with new protocols that aim to launch their stablecoins using Mento’s innovative technology. This approach will not only solidify Mento’s position as a leading stablecoin provider but also ensure that emerging projects benefit from the proven stability and reliability of Mento’s cutting-edge solutions.

Mento Labs Team Exclusive Interview

Our speaker is Nadiem Sissouno.

Why did you decide on RedStone Oracles?

Many oracle solutions out there are:

– Rather centralized and permissioned,
-They do not scale well and,
-They are not customizable to the specific needs of a particular application

RedStone on the other hand, checked all of the requirement boxes for us. Also, we came with very specific needs around gas efficiency, data aggregation, interfaces etc. and the RedStone team was just extremely helpful with figuring out solutions around these aspects.

How did the integration process look like on your end?

Final stage, the crush tests audit but we received a ton of support with integration design work from the RedStone team and the willingness of the team to support us with additional input was a main driver in our decision to work towards a RedStone integration.

From a builders perspective how hard is the integration and use of our oracles in your protocol, and how was the cooperation with our team?

A standard integration is trivial due to the tooling provided by RedStone. In our case, the integration requirements are a bit non-standard as we needed to achieve certain backward compatibility, etc. Here the RedStone team provided a lot of support to figure out the right solution together with us.

About RedStone

RedStone is revolutionizing the Oracles industry by implementing novel modular design and 3 tailor-made data consumption models. You can build the new generation of DeFi & Web3 protocols based on RedStone’s versatile data offering of long-tail, LP, LST, and Ecosystem-native tokens, as well as Real World Data and custom feeds.

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