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Case Study: How Did Venus Protocol Integrate RedStone into its Oracle Interface on BNB Chain?

Discover the results of Venus x RedStone Oracles Integration

Safeguarding Venus users against Black Swan events – that’s the motto of the Venus protocol. The integration of RedStone into Venus’ Resilient Oracle module on the BNB Chain adds redundancy and resilience. With seamless integration and end-to-end infrastructure support, RedStone ensures the highest security standards. This integration opens up possibilities for Venus to easily spin new markets and utilize RedStone price feeds for assets like GHO (Aave’s stablecoin) and BNB Chain LSTs, and even Real World Assets (RWA) in the future.

What’s Venus Protocol?

Venus Protocol launched in 2020 on BNB Chain. Venus simplified the user experience and provided core capabilities that enabled decentralized finance to flourish in a single application by combining the stablecoin minting facility introduced by Maker and algorithmic money markets developed by Compound. As a result, Venus found remarkable success and quickly rose to be one of the most widely used decentralized applications in web3 currently boasting $1.4 Billion in TVL (as of 12th July 2023).

The latest iteration of Venus Protocol builds on prior successes and lessons learned to improve in 3 key areas:

  • Risk management
  • Decentralization
  • User experience

In doing so, Venus continues to push the boundaries of what’s possible within the realm of decentralized finance.

High-level flow of the Venus protocol.

Venus’ Oracle Needs

Venus has been on a mission to be the most secure protocol in regards to Oracles since it suffered over $11M loss with Chainlink pause of LUNA oracle. Therefore, adding RedStone to Venus’ Resilient Oracle module operating on the BNB Chain is a crucial step in adding redundancy to the design. As a result, users of Venus are best protected against Black Swan events in the future.

DeFi has relied on Chainlink, which became a single price feed oracle provider, which posed a systematic risk to the whole industry. This architecture meant when things go wrong, they can go catastrophically. The limitation they encountered from other oracles was an unfamiliar interface making it hard to consolidate price feeds from Oracles and the necessity to run part of Oracles infrastructure with some of the providers.

RedStone not only adjusted its Classic model to the Resilient Oracle module interface so it can be plugged into seamlessly but also takes care of running its price feeds infrastructure end-to-end, together with the on-chain relayer, ensuring Venus’s highest security standards.

Implemented Solution

Firstly, our team had a technical discussion with the Venus DEV team to understand their needs and preferred configuration. Venus’ contributors admitted that the RedStone Core model will be the best fit in the long term, but in the current architecture, RedStone Classic is compatible with Venus’s oracle interface, as no changes to the code logic are required.

Redstone Classic extends the core functionality of providing signed price feeds with a network of relayer nodes that push the data on-chain. 

Additionally, RedStone Classic comes with a few crucial characteristics:

  • Venus can customize parameters of updated Heartbeat and Deviation Threshold,
  • Full transparency in terms of chosen Data Sources and Data Aggregation methods,
  • RedStone takes care of the end2end infrastructure maintenance and development.

After publishing RedStone’s proposal on the governance forum and successfully passing voting with 100% participants in favour, RedStone team prepared an on-chain relayer on BNB Chain with a monitoring service for Venus.

What’s next for RedStone and Venus?

Thanks to adding RedStone to the Oracle module to Venus V4, the dApp will be able to spin new isolated markets easily, utilising RedStone price feeds in the future, i.e. for GHO (Aave’s stablecoin), BNB Chain available LSTs or even RWA.

Exclusive Interview with Venus Team

Our speaker was Danny, BD and Community Lead at Venus.

1. Can you explain why RedStone’s support of Venus’ Oracle module is important?

First and foremost, it enhances the overall functionality and reliability of the Venus ecosystem. With RedStone’s advanced Oracle infrastructure, users can trust the accuracy and timeliness of the data provided for new price feeds.

2. What further plans do you have for Venus this year?

Amongst what’s already been released this year, we have also started exploring various RWA and cross-chain opportunities to further expand our offerings on completely new markets. 

3. Are you excited about any new isolated markets at Venus?

Absolutely! We are constantly working on expanding and exploring new opportunities to create new pools and add new markets that can provide value and growth potential to Venus and our users. One of them will be the addition of a Liquid Staked ETH pool and several new markets within it. We are always looking for ways to tap into emerging trends and areas of interest within the cryptocurrency space and we aim to address the needs and demands of the Venus community by providing access to markets that offer unique and exciting opportunities for DeFi. 

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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