What is RedStone Finance?


3 min read

What is RedStone Finance?

Introducing RedStone Finance: Revolutionizing Oracle Solutions for DeFi

In decentralized finance (DeFi), reliable and up-to-date data feeds are essential for the smooth functioning of dApps and smart contracts across various Layer 1 and Layer 2 networks. This is where RedStone Finance comes into play.

What is RedStone Finance?

RedStone Finance serves as an Oracle, delivering a wide range of frequently updated, trustworthy, and diverse data feeds to support decentralized applications and smart contracts. Unlike traditional Oracle systems, RedStone Finance offers a modular architecture that ensures data integrity from source to smart contracts, providing a more efficient and scalable solution for DeFi protocols.

Why Another Oracle System?

The decision to build RedStone Finance stemmed from several key challenges faced by existing Oracle systems:

  1. Resource Waste: Pushing data on-chain indiscriminately, regardless of its utilization, leads to a significant waste of resources.

  2. Scalability Limitations: Outdated and monolithic architectures hinder scalability, making it difficult to add new assets or reduce latency.

  3. Trust Issues: Protocols struggle to determine trusted data sources and update conditions, posing risks to end-users who rely on relayers for data access.

The RedStone Finance Solution:

RedStone Finance introduces a groundbreaking approach to Oracle solutions, addressing the shortcomings of traditional systems:

  1. Flexible Data Delivery: Data providers can now avoid continuous on-chain data delivery, reducing resource consumption.

  2. User Empowerment: End-users have the ability to self-deliver signed Oracle data on-chain, enhancing autonomy and reducing dependency on relayers.

  3. Decentralized Infrastructure: Leveraging the decentralized Streamr network, RedStone Finance delivers signed Oracle data to end-users efficiently.

  4. Incentivized Data Integrity: Token incentives motivate data providers to maintain data integrity and ensure uninterrupted service.

  5. Secure Data Archiving: Utilizing the Arweave blockchain for cheap and permanent storage, RedStone Finance ensures the accountability of data providers.

Key Facts About RedStone Finance:

  • Modular Architecture: RedStone Finance's modular design ensures data integrity and scalability.

  • Versatile Integration: With three different integration options, RedStone Finance caters to various smart contract architectures and business requirements.

  • Extensive Asset Coverage: RedStone Finance provides data feeds for over 1000 assets from approximately 50 data sources.

  • Multi-Chain Support: RedStone Finance is operational on more than 20 chains, offering broad accessibility.

  • Proven Track Record: RedStone Finance has been supporting DeltaPrime since March 2022 and has been live on mainnets since January 2023. The platform's code has undergone thorough security audits by reputable experts.

How RedStone Finance Works:

  1. Modular Design: RedStone Finance adopts a modular design, where data is initially stored in a data availability layer before being fetched on-chain. This approach enables the broadcast of a large number of assets at high frequency to a cost-effective layer, minimizing on-chain overhead.

  2. Three Integration Models: RedStone Finance offers three integration models tailored to different smart contract architectures and business needs:

    • RedStone Core: Dynamically injects data into user transactions for maximum gas efficiency.

    • RedStone Classic: Pushes data into on-chain storage via relayers, ideal for protocols following the traditional Oracle model.

    • RedStone X: Addresses the needs of advanced protocols by eliminating front-running risks and providing rapid price feeds.

RedStone Finance represents a paradigm shift in Oracle solutions for DeFi, offering a versatile, efficient, and secure platform to meet the evolving needs of decentralized finance applications.

This is not my first post about Redstone,I wrote a User guide back in january here. I am currently writing an updated guide to interacting with the Redstone community, and will share it here once it's finished be sure to subscribe to get alerted when it drops.

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