RedStone: Innovative Oracle System for Modern DeFi Protocols
In the quickly changing realm of decentralized finance (DeFi), the demand for precise, trustworthy, and current information has taken on utmost importance. Enter RedStone, an innovative Oracle system that addresses the shortcomings of existing solutions while ushering in a new era of data provision for dApps and smart contracts. RedStone’s approach is centered around efficiency, scalability, user empowerment, and data integrity, making it a promising player in the DeFi ecosystem.
The Oracle Challenge
Oracle systems play a crucial role in the DeFi ecosystem by providing off-chain data to on-chain applications. However, the traditional approach of pushing data onto the blockchain, regardless of its usage, poses several challenges. This methodology consumes unnecessary resources and restricts scalability due to monolithic architecture. Moreover, establishing trusted sources and conditions for data updates can be contentious, leaving end-users dependent on intermediaries.
RedStone’s Disruptive Solution
RedStone sets out to transform the Oracle landscape with a fresh approach that caters to the demands of modern DeFi protocols. This innovative solution addresses the challenges head-on:
1. Efficient Data Delivery: RedStone enables data providers to break free from continuous on-chain data delivery, saving valuable resources and streamlining operations.
2. User Empowerment: The platform empowers end-users by allowing them to self-deliver signed Oracle data on-chain, reducing reliance on intermediaries.
3. Decentralized Streamr Network: RedStone leverages the decentralized Streamr network for delivering signed Oracle data directly to end-users, enhancing data distribution efficiency.
4. Incentivized Data Integrity: Token incentives form a core component of RedStone’s strategy, motivating data providers to ensure data integrity and maintain uninterrupted service.
5. Arweave Blockchain Integration: By utilizing the Arweave blockchain for cost-effective and permanent storage, RedStone ensures the archiving of Oracle data while upholding data providers’ accountability.
Key Advantages and Features
RedStone’s design is characterized by its modular architecture, ensuring data integrity from source to smart contracts. Notable aspects include:
1. Flexible Integration: RedStone offers three distinct integration approaches, catering to diverse needs within the DeFi ecosystem.
2. Extensive Asset Coverage: With feeds for over 1000 assets sourced from approximately 50 data providers, RedStone boasts comprehensive data coverage.
3. Multichain Presence: RedStone’s footprint extends across more than 20 chains, underscoring its commitment to interoperability and accessibility.
4. Proven Reliability: RedStone has been operational on mainnets since March 2022 with zero downtime. Its code has been rigorously audited by reputable entities like ABDK, Packshield, and L2Beat Co-Founder.
5. Strategic Partnership: RedStone’s partnership with DeltaPrime on Avalanche has yielded unparalleled data feeds, propelling DeltaPrime to a top-ranking position among the fastest-growing dApps, as recognized by DefiLama.
How It Operates — Modular Architecture
The simplest approach to make information accessible to smart contracts is by directly storing data. This method used to be effective when there were long intervals between updates and a small number of assets involved. However, as the DeFi space welcomes an increasing number of tokens and modern derivative protocols demand much quicker data retrieval, the operational costs of the basic model have risen significantly.
For this reason, RedStone presents an entirely new modular architecture. In this novel design, data is first placed into a data availability layer and then retrieved from there to the blockchain. This innovative strategy allows for the efficient broadcasting of a wide array of assets at high frequencies to a more cost-efficient layer. The blockchain comes into play only when the protocol requires the data to be incorporated.
3 Integration Approaches
Depending on the smart contract structure and business requirements, we offer data integration through three distinct models:
1. RedStone Core: Data is dynamically inserted into user transactions, ensuring optimal gas efficiency and delivering an excellent user experience, all within a single transaction.
2. RedStone Classic: Data is inserted into on-chain storage via a relayer. This model caters to protocols designed under the traditional Oracles framework, allowing them to exercise complete control over the data source and update criteria.
3. RedStone X: Geared towards advanced protocols like perpetuals, options, and derivatives, this approach eliminates the risk of front-running. It swiftly provides price feeds in the block immediately following users’ interactions.
Supported chains
RedStone Oracles are accessible across all EVM-compatible Layer 1 and Layer 2 networks, including Starknet and the Fuel Network. While there is a possibility to employ them on additional chains, doing so would entail bespoke development efforts.
RedStone stands as a beacon of innovation in the Oracle space, introducing a paradigm shift in how data is sourced, verified, and delivered to DeFi applications. With a focus on efficiency, user empowerment, and data integrity, RedStone’s approach holds the potential to redefine the DeFi landscape, offering a reliable bridge between off-chain data and on-chain applications. As the ecosystem continues to evolve, solutions like RedStone are poised to shape the future of decentralized finance.
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