In lending, he who liquidates first liquidates best.
– 0xWenmoon
RedStone is proud to introduce a major leap forward in oracle technology: RedStone Atom – the first ever oracle with liquidation intelligence.
Unlike traditional oracle designs, RedStone Atom is the first solution that actively improves the efficiency of lending protocols. It introduces zero-latency oracle updates, allowing protocols to liquidate positions faster, increase their Loan-to-Value ratios, and deliver better risk-adjusted returns than competitors.
Atom also dynamically captures Oracle Extractable Value (OEV) whenever it brings a price onchain, redirecting the value back to protocols where it can be used as revenue, boost user yields, or reduce borrow fees.
Powered by novel Application Specific Sequencing technology from FastLane Labs, Atom introduces no liquidation delays or additional security assumptions.
RedStone Atom can be enabled on any RedStone feed, on any chain. No code changes or engineering time needed.
Atom is already live on Unichain, securing Compound Finance, Morpho, Venus Protocol, and Upshift, and can be integrated on BNB Chain, Base, Berachain – coming soon to Ethereum, HyperEVM, Arbitrum, and more. Reach out to the RedStone team to request Atom on any RedStone feed.
TL;DR:
- Supercharging lending protocols: Atom turns oracles into performance engines. Instant liquidations unlock higher LTVs and better yields, giving protocols a measurable competitive edge.
- Zero-latency liquidations: Atom updates prices the moment liquidation becomes possible, unlocking tighter risk parameters and front-running every competitor.
- Native OEV capture: Legacy oracles have leaked over $500M in OEV to MEV bots. Atom flips the script by capturing liquidation value through sealed-bid auctions and routing it back to the protocol.
- One atomic transaction: Price update, liquidation, and OEV payout all settle together in a single ~300 ms transaction with FastLane’s Atlas.
- No integration work needed: Atom activates instantly on any RedStone feed, on any chain. No code changes required.
Lending Supercharged with RedStone Atom
“RedStone Atom is a fundamental shift in oracle offering – it’s engineered for the protocols rather than built around them. Atom gives lending protocols an unfair advantage in the race to deliver the best yield, while solving hundreds of millions of OEV inefficiency embedded in DeFi over the long term. Simply put, Atom is the supercharger behind DeFi lending, purpose-built for protocols.”
— Marcin Kazmierczak, Co-Founder of RedStone
Atom is a radical reimagining of oracle tech, which solves a key issue behind the most widely used oracles in DeFi.
The majority of lending protocols rely on what is called a push feed, which delivers price updates onchain at predefined conditions, either when a certain amount of time has passed or the price has moved by a certain percentage.
Once onchain, price updates are used by DeFi protocols, where they will sometimes trigger liquidations. Faster oracle updates allow lending protocols to offer less conservative risk parameters and increase the amount that can be borrowed against supplied collateral, making it objectively more attractive for DeFi users. If updates come slowly or are delayed, risk parameters must be made more conservative to prevent protocols from taking on bad debt.
Because it costs gas to push new prices onchain, historical push feeds have been designed to update less frequently, trading granular price updates for sustainability. This tradeoff creates a limiting factor for lending protocols: blockchain oracles update on their own schedule, not when the protocol needs them to.
RedStone Atom introduces the first push feeds that update exactly when protocols need them to.
Using novel Application Specific Sequencing, RedStone Atom upgrades RedStone feeds so that whenever a new price can trigger a liquidation, any party can call that update, effectively creating zero-latency updates for new prices that trigger liquidations.
In lending, he who liquidates first wins. With RedStone Atom, DeFi protocols will allow faster and more efficient liquidations than their competitors. This, in turn, allows those protocols to increase their LTV ratios and deliver higher yield and more value to their users. With this, lending protocols using RedStone Atom will outperform competitors using legacy push feeds.
The $500 Million Problem: OEV and Why Legacy Oracles Fall Short
Oracle Extractable Value has been a major vulnerability of blockchain oracles since the beginning, when the first push feeds were deployed on the Ethereum mainnet. OEV is extremely hard to quantify, but conservative estimates put the total value lost to OEV above $500 million. AAVE v2 and v3, on the Ethereum mainnet alone, have potentially lost over $300 million to OEV.
Potential OEV is created when blockchain oracles push prices onchain that trigger liquidations in lending protocols. To incentivize security and ensure that undercollateralized positions are liquidated before they can incur bad debt, lending protocols award liquidators a ‘liquidation bonus’ sometimes worth 10% or more of the amount liquidated. Because these liquidations represent risk-free profit for liquidators, there is huge competition to claim those bonuses, resulting in massive bidding wars. As a result, in many cases, almost the entirety of the bonus is paid out by the liquidator as priority fees, effectively meaning that protocols have dramatically overpaid for their own security.
The first products attempting to capture OEV came onto the market in 2024. None has succeeded at getting mass adoption or capturing meaningful amounts of OEV. Existing OEV solutions are simple tools that capture OEV and don’t improve the underlying oracle infrastructure. In many cases, they make it worse by introducing significant liquidation delays, or relying on offchain infrastructure that introduces significant trust assumptions and which cannot easily scale across EVM chains. Many also require developers to make time-consuming and risk-incuring protocol upgrades, making them difficult to integrate into existing popular markets.
In developing an OEV solution, RedStone articulated four important criteria for a scalable OEV solution:
- It should not delay liquidations even slightly. In fact, we discovered a way to speed them up with Atom.
- It should introduce no additional security risks or trust assumptions.
- It should scale easily to any EVM chain.
- It should have a high capture rate, meaning that it should capture >90% of the liquidations occurring in integrated markets.
Atomic OEV Auctions with FastLane
RedStone Atom meets all these criteria and improves on the concept of OEV by using a novel technology: Application Specific Sequencing.
With Atom, RedStone feeds conduct atomic OEV auctions for new price updates using FastLane’s Atlas.
FastLane streams new RedStone prices into an offchain auction that lasts less than 300 milliseconds. In this auction, liquidators compete with each other to submit the winning bid and capture the liquidation bonus.
When each auction ends, FastLane forwards the bids to the Atlas smart contract in order of bid amount. The Atlas smart contract then atomically updates the data feed and settles the auction, finding the highest bid on-chain. When an auction provides bids from liquidators, Atlas wraps three calls into one atomic transaction:
- Push the new, signed oracle price
- Execute the liquidation
- Transfer the winning bid to the designated recipient
Because all three calls settle in the same block, the oracle update and the liquidation are inseparable and atomic. There is no possibility for other transactions to steal the liquidation, and no possibility of the liquidation being delayed within the lending protocol.
The moment an offchain price exposes a position to liquidation, Atlas opens a sealed-bid window auction that lasts milliseconds, where liquidators (or any solver) bid for the exclusive right to liquidate. If a bid reverts, Atlas’ internal try/catch rolls instantly to the next solver.
The protocol receives the majority of the liquidation bonus as revenue, and the winner keeps the remainder. If the auction does not provide valid bids, RedStone relayers simply push prices the same way they would for standard pre-Atom contracts, and the protocol functions as usual. If Atlas liquidations fail on-chain, the price update is immediately available for anyone to liquidate using the standard method.
In the unhappy path, everything falls back to the battle-tested standard sequence. In the happy path, liquidations are executed with zero latency, and OEV is captured for the protocol.
“At Fastlane we are committed to building the foundry for leverage in DeFi; a real-time and optimized risk engine for liquidations. RedStone Atom not only leads to significantly better outcomes for users and protocols, it also moves the cutting edge of crypto back to where it should be: onchain.”
— Alex Watts, Founder of FastLane
Integrating RedStone Atom
Atom requires no technical integration. It is an upgrade that can be enabled natively on any RedStone price feed on any RedStone chain. Once enabled, Atom will begin delivering zero-latency liquidations and capturing OEV for all protocols using that price feed. Protocols do not even have to change the contract address they use for the feed.
To start using Atom, simply:
- Request RedStone Atom on a feed or feeds used by your protocol
- Supply an address to receive the captured OEV
RedStone deploys the Atlas contracts on the designated chain and notifies your team once the Atom upgrade is live.
The Next Era of The Blockchain Oracle Tech
Live exclusively on Unichain at launch, Atom is a major leap forward for oracle tech. Today, blockchain oracle products are not meaningfully differentiated from each other. Apart from the oracle’s security track record, there is very little difference between the two ETH/USD price feeds deployed on the same chain. Atom changes that.
A lending protocol using a feed that has been upgraded with Atom will be able to outperform competitors by offering less conservative risk parameters, providing users with even more yield on their strategies. This will make RedStone feeds the first choice for any lending protocol.
Other blockchain oracles are unable to copy RedStone Atom. They may try to implement similar technologies, but monolithic designs make it impossible to natively integrate with the oracle stack as Atom does with RedStone’s modular stack.
In addition, RedStone and FastLane Labs will keep a share of the OEV captured by Atom. These funds will go to a publicly declared address onchain where they will be used for the future development of the protocol and ecosystem.
To learn more about RedStone Atom, watch our presentations at ETHcc 2025:
- Marcin Kazmierczak, RedStone Co-Founder: https://www.youtube.com/watch?v=dQxkAPp3z9Y
- Mike Massari, RedStone Atom Lead: https://youtu.be/M1YFKQZ55UM
About FastLane
Fastlane has deep experience in the MEV space, operating validator block auctions on Polygon PoS for multiple years, now with ~75% of stake connected. The newest Fastlane venture in partnership with RedStone is focused on building a permissionless execution desk for lending protocols; infrastructure and mechanisms for RedStone data feeds that increase the leverage that DeFi protocols can safely offer.
About RedStone
RedStone is a modular blockchain oracle optimized for DeFi and on-chain finance, with a focus on yield-bearing assets like value-accruing stablecoins, Liquid Staking Tokens (LSTs), and Restaking Tokens (LRTs). It delivers secure, reliable, and customizable data feeds across 110+ chains. Trusted by 170+ clients, including leading protocols such as Securitize, Ethena, Morpho, Drift, Compound, ether.fi, Lombard, and more.
