RedStone: Powering Cross-Chain DeFi with Modular Oracles

Introduction

RedStone is an innovative modular oracle solution that elevates cross-chain DeFi by providing adaptive, high-frequency data feeds tailored for wider blockchain networks. It specializes in yield-bearing collateral for lending markets, focusing on Liquid Staking Tokens (LSTs) and Liquid Restaking Tokens (LRTs).

It also develops price feeds for new asset types requiring innovative price discovery models. RedStone operates independently of specific blockchains, facilitating data delivery to multiple EVM and non-EVM ecosystems, rollups, and appchains through modular data consumption models. This article gives a comprehensive understanding of RedStone, its features, mechanism, and more; readers also get to know about its pre-token trading (PRE_RED) on CoinEx.

RedStone Architecture and System

This platform uses a unique pull-based Oracle model, which gathers data from decentralized and centralized exchanges and enterprise-grade data providers. This data is aggregated and refined to ensure accuracy and reliability using median, Time-Weighted Average Price (TWAP), or Linear-Weighted Average Price (LWAP). Node operators then sign the processed data, which is distributed through the Data Distribution Layer (DDL) before being passed on-chain via various data delivery models. This approach enhances the speed and efficiency of data delivery and ensures the security and integrity of the information provided to DeFi protocols.

Whether you’re building lending platforms, perpetual, restaking solutions, or BTC staking protocols, RedStone supports all data consumption models, including Push & Pull blockchain oracles and beyond. Its modular architecture ensures seamless scalability, operating on 70+ chains and effortlessly deploying across both EVM and non-EVM ecosystems.

Genesis of RedStone

RedStone’s origins trace back to 2020, when Jakub Wojciechowski, the Founder and CEO, identified the need for oracles that could support a broader range of assets with lower latency, drawing from his experience as a smart contract auditor at OpenZeppelin. Wojciechowski’s background in computer science and economic psychology from the University of Warsaw equipped him with a unique perspective on the decision-making processes of market participants, which influenced the design of RedStone’s oracle solutions.

Marcin Kaźmierczak, Co-founder and COO, brought to RedStone his experience in blockchain, DeFi, and Web3 infrastructure. His experience includes project management at Google and academic pursuits at the Warsaw School of Economics and National Chengchi University in Taipei, where he focused on blockchain technology and business use cases.

Kaźmierczak’s role involves partnerships and strategies to ensure RedStone’s data feeds are reliable and adaptable to emerging trends. Other Co-Founders include Piotr Pędziwiatr, Matt Gurbiel, and Alex Suvorov. They all contribute to the growth of RedStone and broader usage in the Web3 ecosystem.

Distinctive Features of RedStone

RedStone separates itself through several key attributes tailored to the needs of the DeFi sector. Key features include but are not limited to:

• Exclusive Data Feeds: Specializes in yield-bearing collateral for lending markets, focusing on LSTs and LRTs, and develops price feeds for new asset types requiring innovative price discovery models.
• Universal Deployment: Designed to operate independently of specific blockchains, enabling data delivery to multiple EVM and non-EVM ecosystems, rollups, and appchains.
• Comprehensive DeFi Support: Supports versatile use cases through modular data consumption models, including push and pull oracles.
• Modular Design: The system is built with independent components that can be easily swapped or added to enhance redundancy and optimize for specific use cases.

Mechanism and Concept

RedStone operates on a pull-based data model, where Oracle nodes provide real-time, on-demand data rather than continuously broadcasting data to the blockchain. This approach significantly reduces gas fees and enhances scalability. Key mechanisms include:

• Off-Chain Data Caching: Data is stored off-chain until it is requested by smart contracts, ensuring a more efficient on-chain footprint.
• Signed Data Packages: Oracle nodes sign data packages cryptographically, verifying authenticity before injecting them into smart contracts.
• Flexible Data Feeds: Developers can customize and optimize their data sources based on specific application needs.

Latest Developments

RedStone is the first major blockchain oracle to deploy an Actively Validated Service (AVS), using EigenLayer’s shared security platform. RedStone launched a new service that reinforces its modular architecture, enabling its blockchain oracles to operate seamlessly using EigenLayer’s robust AVS framework. Among the feeds secured by EigenLayer will be EtherFi’s weETH on Ethereum and Base.

The market has reacted positively to RedStone’s developments, as evidenced by Toncoin’s price increase following RedStone’s oracle solution integration with TON in 2024. RedStone’s co-founder, Marcin Kaźmierczak, noted the company’s total value secured (TVS) has grown 1,250% year-over-year, reaching $6.3 billion.

The Token Generation Event (TGE) for RedStone’s native token, RED, is a significant milestone in the project’s development. Here are some key points regarding the TGE and RED tokenomics:

1. Token Supply and Float: The maximum supply of RED tokens is capped at 1 billion, with an initial float of 30% available at the TGE. The remaining 70% will be locked and released over four years to ensure market stability and long-term growth.
2. Token Distribution:

• Community & Genesis: 10% for early supporters and active participants.
• Protocol Development: 10% for research and operational efficiency.
• Core Contributors: 20% for key team members and advisors.
• Ecosystem & Data Providers: 28.3% to support community growth and incentivize data providers.
• Early Backers: 31.7% for early financial and strategic supporters.

CoinEx launched PRE_RED, a PreToken for predicting the spot price of RED. 

Strategic Partnerships

RedStone has integrated with several DeFi protocols, including Angle Protocol, CIAN, Swell Network, DeltaPrime, Voltz Protocol, and Mento Labs. These partnerships enhance functionality through real-world asset integration, low-latency price feeds, liquid staking support, undercollateralized lending, and stablecoin development.

RedStone powers Kraken’s Ink Chain, Etherlink, and Fuel in blockchain platform collaborations, providing real-time, secure Oracle data for DeFi applications. RedStone also partners with infrastructure providers like Gelato and Streamr, enabling low-latency oracles and decentralized data networks. RedStone is now powering Plume Network, the first RWA-focused Layer 1, to bring $4.5B in liquidity to DeFi. This collaboration is important for Real World Assets (RWA) and DeFi, showing RedStone’s role in the Web3 space.

RedStone supports over 70+ chains like Unichain and Ink L2 and has expanded as an LSTfi Oracle, integrating with Swell Network, Stader ETHx, Sommelier, Gravita, Stakewise, and EtherFi. These efforts drive DeFi innovation, security, and scalability.

Conclusion

RedStone is changing DeFi oracles with modular, cost-efficient, and cross-chain solutions. By improving data accessibility, it strengthens the DeFi ecosystem. As it grows, its impact on blockchain and finance will attract industry and investor attention. 

Disclaimer: This article does not constitute financial advice but only for informational purposes only