RED is the native token of the decentralized oracle protocol RedStone, aimed at providing efficient, secure, and flexible data services for the blockchain ecosystem. As a modular oracle solution, RedStone achieves off-chain data verification and low-cost on-chain synchronization through the EigenLayer AVS framework, addressing the pain points of traditional oracles such as high Gas fees and low scalability. Its core advantages include low-latency updates (performing better than Chainlink during extreme market volatility), multi-chain compatibility (covering over 30 chains), and modular architecture (supporting both pull/push modes with customizable data sources). Currently, RedStone has become the second-largest oracle provider in the industry, with a total value secured (TVS) of $6.8 billion, partnering with leading DeFi protocols such as Spark, Pendle, and Ethena.
Team members and project background
RedStone is led by an anonymous team, with its project background focusing on technical strength and market performance as core highlights. In July 2024, RedStone completed a Series A financing of $15 million, rapidly expanding by relying on the EigenLayer ecosystem. Its technical architecture integrates AVS (Active Validation Service), reducing Gas costs through off-chain validation while maintaining decentralization. Although the team members are not publicly disclosed, the project showcases influence through cooperation and ecosystem building: in 2024, it reached cooperation with over 100 projects covering areas such as lending, LST (liquid staking tokens), and stablecoins, and verified its data reliability during a $2 billion liquidation event. Furthermore, RedStone is deeply integrated with multi-chain ecosystems such as Ethereum and Solana, further solidifying its position as a 'full-chain oracle'.
Token economics analysis
The total supply of RED tokens is 1 billion, with the following distribution mechanism:
1. Community and Ecosystem (48.3%): including protocol development (10%), data provider incentives (28.3%), and community airdrops (10%);
2. Core contributors (20%): allocated to the development and operations team;
3. Early supporters (31.7%): covering investors and strategic partners.
The initial circulation is 28% (280 million tokens), with 70% of the remaining tokens locked for 12 months after TGE, then gradually unlocked over 36 months. The token functions include:
- Staking and earnings: Users can earn a share of data service fees by staking RED, wrapped as LRT (liquid re-staking tokens) to participate in DeFi earnings;
- Governance and validation: may participate in protocol governance and AVS node operation in the future.
In terms of valuation, benchmarking against Pyth (FDV $2 billion), if RED is fully circulating, the market cap would reach $1 billion, with a unit price of about $1; if market enthusiasm rises to Chainlink levels (FDV $10 billion), the unit price may reach $10.
Summary and Outlook
RedStone has become a dark horse in the oracle track due to technological innovation and market penetration, with its modular design, low latency, and multi-chain compatibility giving it an edge in competition. The token economics focus on long-term ecosystem building, but attention should be paid to unlocking risks (70% token lock-up period may face selling pressure) and market competition (the continued iteration of leading projects such as Chainlink and Pyth).
In the short term, if RED is benchmarked against Pyth, the reasonable price range is $1-2; in the long term, if ecosystem expansion goes smoothly, it may replicate Chainlink's growth path. Focus on liquidity changes after TGE and progress in mainstream protocol integration. #Binance pre-market launch of RED
