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What is RedStone? Modular Oracles for DeFi

RedStone is a modular oracle specializing in yield-bearing collateral for lending markets that can be rapidly deployed to meet market needs, particularly in new segments such as liquid staking and liquid restaking. Partners benefit from exclusive data feeds that enable them to develop innovative DeFi primitives utilizing prices of the underlying assets. The infrastructure is designed to support over 1000 different use cases and assets, offering assets and solutions that are future-proof and tailored to diverse needs. Currently, RedStone is operating across more than 50 chains and can be made available for all rollups. Known for delivering exclusive, in-demand assets, RedStone has emerged as the fastest-growing oracle in the market, trusted by leading projects such as Morpho, Venus, Etherfi, and Pendle.

The Genesis of RedStone

The inception of RedStone can be traced back to 2020, born from the need to address the limitations of existing oracles in terms of latency and the narrow range of supported assets. Jakub, the Founder, brought his extensive experience as a smart contracts auditor and a DeFi enthusiast to the table, aiming to overcome the challenges posed by traditional push oracles. This led to the development of RedStone’s pioneering pull-based oracle model, known as RedStone Core, marking a significant evolution in the oracle technology.

RedStone’s Distinctive Features

RedStone sets itself apart in the oracle landscape with a few key attributes tailored to the dynamic needs of the DeFi sector:

Delivering Feeds Not Available Elsewhere

RedStone specializes in yield-bearing collateral for lending markets, particularly emphasizing liquid staking tokens (LSTs) and liquid restaking tokens (LRTs). The company develops price feeds for new types of assets that require innovative price discovery models, such as slippage-based weighting. To ensure the highest levels of accuracy and relevance, RedStone consistently updates its modular pricing engine, adapting to the market’s evolving needs.

Deployable Everywhere

RedStone’s price feeds are chain agnostic, meaning they are designed to operate independently of any specific blockchain. This allows RedStone to push data to multiple EVM and non-EVM ecosystems, rollups, and various appchains. Such versatility establishes RedStone as an ideal partner for rollup-as-a-service providers and Eigenlayer Actively Validated Services, facilitating broad compatibility and extensive integration options.

Supporting All DeFi dApps

RedStone supports versatile use cases through its modular data consumption models. Push oracles proactively provide data to smart contracts at predetermined intervals. The oracle operator, or other authorized parties, continuously pushes updates, such as price changes, to the blockchain. In contrast, pull oracles, also known as on-demand oracles, operate differently. They provide data only when prompted by a query from the smart contract, ensuring that data is fetched only when needed.

RedStone’s Modular Design

RedStone’s system is built with a highly modular design that includes multiple independent components, which can be easily swapped or added to enhance redundancy. This design promotes operational flexibility and specific use case optimization. This modular approach increases system reliability and allows for optimization specific to use cases, such as significantly improving gas efficiency.

Modularity in Integrating RedStone:

RedStone’s modular architecture provides several methods for dApps to access its data. All price feeds are stored off-chain in a decentralized and secure manner within RedStone’s “Data Distribution Layer” (DDL) and are timely delivered on-chain in various ways depending on the specific oracle model. This setup enables different dApps across various chains to consume the same price feed in diverse ways, aligning with their unique requirements. Currently, there are three primary methods by which dApps can access RedStone’s data, each tailored to different dApp types and use cases.

Modularity in Terms of Rollup-Centric Thesis:

The modular design of RedStone is also pivotal for the future of Appchains and thousands of Rollups. The architecture allows easy utilization of RedStone’s data feeds on any new chain built atop technologies like the OP stack, Arbitrum Orbit, Polygon zkEVM CDK, or zkStack, regardless of whether they are a Layer 2 solution, an appchain, or a sovereign rollup. This flexibility ensures that RedStone’s solutions are future-proof, accommodating the evolving landscape of blockchain technology.

Case studies

RedStone equips its partners with reliable price feeds and rapid execution enabling them to broaden their market reach. A prime example is RedStone’s integration with DeltaPrime, which permits users to borrow additional usable capital across various DeFi protocols. This requires continuous oracle updates on the value of each token for the Prime Accounts. Thanks to an off-chain stream of nodes called the Data Distribution Layer, there is no need to pay gas costs for new price data, as the data is being pushed on-chain only when needed (i.e. for a liquidation). By offering more customisable flows of consuming data, RedStone Oracles can disrupt the industry, enabling the formation of entirely new DeFi products.

Moreover, in the case of Gearbox Protocol, RedStone enhances it by providing essential price feeds delivered by the Core (Pull) model in the 3rd version of the Gearbox Protocol. This capability is due to RedStone’s flexible fetcher architecture, which can quickly adapt to new price feeds. Furthermore, RedStone plays a crucial role in pioneering unique price feeds, such as for $GHO, thereby diversifying Gearbox’s stablecoin offerings.

How RedStone Works? 

The process starts with RedStone nodes gathering data from various sources, including decentralized and centralized exchanges, and enterprise-grade data providers. This data is then aggregated and refined using median, TWAP or LWAP methods. After processing, the data is signed by the node operators and sent to the off-chain stream of nodes – Data Distribution Layer (DDL), from where it is passed on-chain using one of the data delivery models offered.

RedStone has redefined the LST and LRT landscape with its innovative pricing methodology for yield-bearing collateral in lending markets. RedStone thoughtfully built its system, centring it around modularity. With its unique pull-based model and chain-agnostic capabilities, RedStone offers precise and gas-optimised data feeds to DeFi applications across over 50 chains and rollups. Its modular architecture ensures it stays at the forefront of blockchain innovation, supporting the creation of new DeFi products like LSTs and LRTs and enhancing existing applications. RedStone’s commitment to innovation and client success marks it as a key player in the oracles market.

RedStone Expedition

Want to get involved and learn more about the fastest-growing modular oracle? Take part in Season 2 of our expedition. Become a RedStone Miner and join our community. Our ambassadors will be happy to answer all your questions and guide you in achieving the Deep Miner role!

About RedStone

RedStone is the quickest growing modular oracle delivering diverse, high-frequency data feeds to EVM Layer1, Layer2, Rollup-as-a-Service networks, and beyond, i.e., Starknet, Fuel Network, Casper or TON. By responding to market trends and developer needs, RedStone can support assets not available elsewhere. The modular design allows for data consumption models adjusted to specific use cases, i.e., capital-efficient LSTfi and early support of LRTs. RedStone raised over $22M from Lemniscap, Blockchain Capital, Maven11, Arrington Capital, Coinbase Ventures, SevenX, IOSG, Stani Kulechov, Sandeep Nailwal, Alex Gluchovski, Emin Gun Sirer, and other top VCs & Angels.