Skip to content

Case Study: DeltaPrime x RedStone Oracles, months of successful cooperation

Discover the results of Delta x RedStone Oracles Integration

Many think that the cooperation with an Oracle ends once the integration is finished, which is hardly ever true. Successful protocols evolve and respond to market trends. Therefore, a close feedback loop with an Oracle provider is essential to progress.
DeltaPrime successfully integrated RedStone Oracles on the Avalanche mainnet in 2022, which we featured here. Since then our teams have worked side-by-side to bring improvements to the ecosystem and offer DeltaPrime’s users what they asked for. We’re happy to update you on what this process looks like.

DeltaPrime allows users to borrow additional capital, which can be used across a wide range of DeFi protocols. This means it needs constant Oracle updates about the value of every single token for the Prime Accounts. Thanks to an off-chain stream of nodes called the “RedStone Data Access Layer”, there is no need to pay gas costs for new price data, as the data is being pushed on-chain only when it’s needed (i.e for a liquidation). By offering more customisable flows of consuming data, RedStone Oracles can disrupt the industry, enabling the formation of completely new DeFi products.

What is DeltaPrime?

DeltaPrime is the first Avalanche-native protocol that provides undercollateralized DeFi loans, in a trustless way. This means that, while you can borrow more than you deposit as collateral, depositors’ funds remain fully protected by the protection of liquidation bots. Users can easily deposit and borrow funds to increase the power of their usual DeFi investments. The minimum collateral ratio for these loans is 20%, allowing users to increase the potential returns of their trades and investments up to 5x.

DeltaPrime’s Oracle Problem

At the heart of DeltaPrime’s business model is the sophisticated evaluation of its borrowers’ portfolios to ensure solvency. These portfolios span across a variety of assets, from basic ERC20 tokens like ETH to more nuanced positions in liquidity-providing (AMM), vaults, and farms. This diligent monitoring enables the precise valuation of each portfolio, which is subsequently compared to the respective debts. Such an approach underscores DeltaPrime’s commitment to financial stability and trust.

Traditional “push” oracle models, with their limited token set and omission of derivative assets like LP positions, would not provide enough flexibility and security for DeltaPrime. Many projects resort to calculating on-chain derivative asset pricing, which is susceptible to flash loan manipulations. Moreover, a traditional on-chain Oracle offers unacceptable refresh intervals of minutes or even hours, depending on the asset. RedStone, however, presents a safer alternative by assessing these positions on a decentralized off-chain layer. This approach ensures fresh data feeds and broad coverage for all assets, farms, and vaults on DeltaPrime, enhancing both security and flexibility.

Implemented Solution

The RedStone team proposed the Core Model to DeltaPrime, which brought a variety of advantages: 

  • It guarantees 10s latency (almost real-time tracking of the value of deposited collateral) which allows users to create more risk-seeking strategies,
  • It delivers the price data for ~40 tokens allowing unique combinations of positions and the ability to earn higher yields on less popular and liquid assets,
  • It’s affordable to maintain as gas fees are only collected when the data is used to process a transaction on-chain.
Implemented solution for DeltaPrime

RedStone undertook considerable custom development efforts to fulfill DeltaPrime’s needs, offering real-time prices for around 40 assets, including LP and staked tokens that were previously unprovided by any other Oracle service. This was made possible through RedStone’s flexible fetchers architecture, which facilitates the swift addition of new price feeds. Collaboratively, both teams conducted risk research to specify a liquidity threshold for asset tracking and devised a methodology to detect price manipulation based on the historical volatility of token prices.

The Future of DeltaPrime-RedStone Partnership

DeltaPrime intends the Prime Account to become the main place for users to manage their blue-chip investments. That means that it needs accurate and reliable pricing on a wide range of assets, which in the future will include RWAs. The fusion of DeltaPrime’s ambition and RedStone’s innovative solutions promises to strengthen DeltaPrime’s position in the market and propel it towards a future where users have unprecedented control and flexibility over their investment decisions.

DeltaPrime Team Exclusive Interview

Our speaker was Piotr Duda, DeltaPrime Founder & CEO.

Why have you decided on RedStone?

RedStone was the only provider that allowed us to get safe data feeds of derivative tokens on the Avalanche C-Chain in the first place. It is also natively compatible with any EVM Layer 1 and Layer 2 network, which will make our cross-chain expansion easier in the near future.

How did the integration process look on your end? What was RedStone’s part in that?

The integration started with our developers experimenting with examples provided by RedStone. Based on that we incorporated necessary updates to our smart contracts and UI, to make them compatible with the innovative Core model. RedStone team offered continuous support with our questions and most importantly, helped us to create a robust monitoring system, ensuring highest safety standards for our system.

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

Although the RedStone model is much different from other oracle approaches, the integration is fairly easy. There is extensive documentation and tutorials that lead through the process. The RedStone team was really helpful on the way, providing us with necessary guidance where it was needed.

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.

See what such a project could look like for your protocol Twitter | Discord | Telegram