The increasing adoption of smart contracts has amplified the importance of blockchain Oracle protocols like Chainlink (LINK). These protocols serve as conduits for external data, which are essential for the autonomous functioning of smart contracts. As decentralized finance (DeFi) and traditional finance realms merge, the role of oracles becomes even more critical.
RedStone is stepping up to meet the rising demand for Oracle solutions. It leverages the decentralized Streamr network to provide users with trustworthy data, eliminating unnecessary on-chain data transmission inefficiencies. RedStone stands out as a trusted source for data feeds, catering to over 40 blockchain platforms. This includes both Ethereum virtual machine (EVM)-compatible network blockchains and non-EVM networks.
In a conversation with CryptoSlate, Jakub Wojciechowski shed light on how RedStone is challenging the existing norms. With the growing need for decentralized finance infrastructure, RedStone presents a modular design that promotes on-chain data efficiency. It houses all data in its innovative data availability layer, fetching only the required data on-chain, ensuring both cost and efficiency optimization. Wojciechowski emphasized, “RedStone is transforming the oracle domain by eliminating the inefficiency of unnecessary on-chain data pushing. It capitalizes on the decentralized Streamr network to ensure reliable data delivery to users. The added innovation of token incentives guarantees data integrity and continuous service. Moreover, it employs the Arweave blockchain for cost-effective, permanent data storage.”
This unique design also enables the infrastructure to broadcast multiple assets frequently across any EVM layer-1 or Layer-2 network, ensuring wide compatibility with numerous smart contract blockchains. Unlike the conventional push oracle model, which is less scalable and incurs a higher cost for each chain deployment, RedStone’s approach allows it to offer affordable and dependable data feeds across more than 40 chains.
Furthermore, RedStone plays a pivotal role in supporting Aave’s stablecoin, GHO. The stablecoin ecosystem heavily depends on oracles, especially for algorithmic stablecoins, as their stability is contingent on price infrastructure that aggregates information from multiple sources. Wojciechowski highlighted the critical role of oracles in the stablecoin ecosystem, especially for algorithmic and decentralized stablecoins that use volatile cryptocurrency reserves as collateral. He mentioned, “When the collateral-to-loan ratio drops below a specific threshold, oracles initiate liquidations to ensure system solvency, making their reliability and precision vital for the stablecoin’s peg to its intended value.” For Aave GHO, RedStone amalgamates data from various DEX pools to streamline stablecoin integration. Wojciechowski also pointed out that RedStone remains developer-centric by offering three consumption models for developers. fullstory