What is RedStone (RED)?
Key thoughts
RedStone is a modular middleware for blockchain networks aimed at providing secure, customizable, and low-cost data sources for web 3 applications and decentralized finance.
It offers multiple data models that aggregate information from diverse sources, including cryptocurrency trading platforms and other blockchain networks.
RedStone uses the EigenLayer protocol to enhance security, ensure data accuracy, and prevent manipulation.
RedStone middleware software services are useful in various decentralized finance areas and blockchain applications, including lending, trading, staking, and yield harvesting.
Introduction
RedStone is a middleware for blockchain networks designed to use real-world data in smart contracts across different blockchains. This is crucial for web 3 applications and decentralized finance that require reliable price information and other data to function correctly. RedStone aims to provide secure, customizable, and low-cost data sources, supporting over 1,250 assets across dozens of blockchains.
What is RedStone?
RedStone is a system that provides financial data for decentralized applications. Unlike traditional middleware that stores data directly on the blockchain, RedStone adopts a different approach to make data delivery faster and less costly. It offers several methods for decentralized applications to access the data they need based on specific requirements.
Since its launch in 2021, many decentralized finance projects have utilized RedStone, including EtherFi, Ethena, Pendle, Solv, Venus, and Puffer.
How RedStone works
RedStone provides data for decentralized applications through various data consumption models, enabling clients and developers to choose the most suitable option. It features a modular architecture that handles data collection and delivery separately, meaning it can scale better across multiple networks.
1. Data sources
RedStone aggregates price information from various sources, including cryptocurrency trading platforms and other blockchain networks, and this data is processed to ensure accuracy before it becomes available to smart contracts.
2. Data retrieval models
RedStone has several different ways to inject data into smart contracts, with the main models being the withdrawal model, the payment model, model X, and the mixed model.
Withdrawal model
In this model, decentralized applications retrieve the latest data only when needed. This method is cost-effective as it does not require continuous on-chain updates. Instead, data is stored off-chain and retrieved by smart contracts only when necessary.
Payment model
With the payment model, RedStone continuously updates price data on the blockchain. This is beneficial for applications that need real-time price updates, such as lending platforms and trading protocols.
Model X
Model X provides additional security by preventing trading attacks based on insider information, ensuring that the price used in the transaction remains valid throughout its execution.
Mixed model (Payment + Withdrawal)
The mixed RedStone model has been introduced as part of the ERC-7412 standard. This model combines deposit and withdrawal strategies, allowing decentralized finance applications to retrieve data on demand while still having access to regularly updated on-chain information.
3. RedStone services that are subject to active auditing (AVS)
In 2025, RedStone introduced Active Verification Services (AVS) using the EigenLayer protocol and its re-staking mechanisms. This system enhances price feed security by utilizing a network of validators to verify data accuracy before it is published on-chain. This helps prevent manipulation and increases trust in the data provided by RedStone.
Security
The RedStone platform has undergone numerous security audits by firms such as Halborn, Codespect, AuditOne, Cantina, PeckShield, and ABDK. These audits help ensure that the system is secure and free from vulnerabilities.
Additionally, RedStone stores signed records in an encrypted manner off-chain and uploads them to Arweave, a decentralized storage network. This ensures that old data remains protected from manipulation and can be verified.
What are the uses of RedStone?
RedStone middleware software services are useful in many decentralized finance and blockchain applications, including lending, trading, staking, and yield harvesting.
1. Decentralized lending
Lending platforms require accurate price data to determine borrowing limits and avoid bad loans. RedStone provides real-time prices to ensure fair lending terms.
2. Trading perpetual contracts
Traders in perpetual futures markets rely on accurate prices to settle contracts. RedStone assists decentralized trading platforms by providing updated market data.
3. Staking and yield harvesting
Protocols that provide staking and yield harvesting need accurate price feeds to calculate rewards, and RedStone ensures that these calculations are based on reliable data.
4. Stablecoins and digital assets
Stablecoin projects need reliable exchange rates to maintain their value, and RedStone helps these projects track real-world prices and maintain the stability of their peg.
5. Multi-chain applications
Since RedStone operates across multiple blockchain networks, it is beneficial for projects working on different chains, and its flexible system makes integration easy for developers.
RED tokens
The RED token, the native token of the RedStone network, was launched to help decentralize the middleware network and support its future growth. The total token supply is capped at 1 billion RED tokens, with 30% available at launch. RED tokens follow the ERC-20 standard on the Ethereum network and can also be used on networks like Solana and Base through a cross-chain system called Wormhole.
RED tokens are primarily used for staking, which helps secure the RedStone network. Data providers and token holders can stake their RED tokens within the RedStone system, which operates with EigenLayer services that are subject to active auditing. In return, they can earn rewards in various cryptocurrencies such as ETH, BTC, SOL, and USDC from users relying on RedStone data.
Tokens are distributed to support the community and ecosystem. The distribution includes 10% for early community members, 10% for development, 20% for team members, 28.3% for data providers, and 31.7% for early investors. Most tokens (70%) will be initially reserved and gradually released over four years.
Closing thoughts
RedStone is middleware for blockchain networks aimed at providing reliable and cost-effective price feeds for decentralized finance applications and other blockchain applications. RedStone offers multiple methods to access and utilize data with support for over 70 blockchain networks. Its modular approach ensures efficient data delivery, while the integration of actively audited EigenLayer services helps provide security.
Related articles
What is EigenLayer?
What are Active Verification Services (AVS)?
What is liquidity staking?
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