User-Mohamed Akmel

Key Takeaways

RedStone is a modular blockchain oracle that aims to provide customizable, low-cost, and secure data feeds for Web3 and DeFi applications.

It offers multiple data models that gather information from various sources, including cryptocurrency exchanges and other blockchain networks.

RedStone leverages the EigenLayer protocol to increase security, ensure data accuracy, and prevent manipulation.

RedStone’s oracle services are useful in many areas of DeFi and blockchain applications, including lending, trading, staking, and yield farming.

Introduction

RedStone is a blockchain oracle designed to bring real-world data into smart contracts on different blockchains. This is important for Web3 and decentralized finance (DeFi) applications that need reliable price information and other data to work properly. RedStone aims to provide customizable, low-cost, and secure data feeds that support over 1,250 assets across dozens of blockchains.

What Is RedStone?

RedStone is a system that provides financial data to decentralized applications (DApps). Unlike traditional oracles that store data directly on the blockchain, RedStone takes a different approach to make data delivery faster and cheaper. It offers multiple ways for DApps to access the data they need, depending on their specific requirements.

Since its launch in 2021, RedStone has been adopted by many DeFi projects, including EtherFi, Ethena, Pendle, Solv, Venus, and Puffer.

How RedStone Works

RedStone provides data to DApps through different models of data consumption, allowing clients and developers to choose the most suitable option. It has a modular architecture that handles data collection and data delivery separately, meaning it can scale better across multiple networks.

1. Data feeds and sources

RedStone gathers price information from various sources, including cryptocurrency exchanges and other blockchain networks. This data is then processed to ensure accuracy before being made available to smart contracts.

2. Data retrieval models

RedStone has a few different methods for getting data into smart contracts. The main ones are called Pull Model, Push Model, X Model, and Hybrid.

Pull Model

In this model, DApps retrieve the latest data only when they need it. This method is cost-efficient because it does not require continuous on-chain updates. Instead, data is stored off-chain and fetched by smart contracts only when required.

Push Model

With the push model, RedStone continuously updates price data on the blockchain. This is useful for applications that need real-time price updates, such as lending platforms and trading protocols.

X Model

The X Model provides extra security by preventing front-running attacks, ensuring that the price used in a transaction remains valid throughout its execution.

Hybrid Model (Push + Pull)

RedStone’s Hybrid Model was introduced as part of the ERC-7412. This model combines both push and pull strategies, allowing DApps to fetch data on demand while still having access to regularly updated on-chain information.

3. RedStone Actively Validated Service (AVS)

In 2025, RedStone introduced an Actively Validated Service (AVS) using the EigenLayer protocol and its restaking mechanisms. This system improves the security of price feeds by using a network of validators to verify the accuracy of data before it is published on-chain. This helps prevent manipulation and increases trust in the data RedStone provides.

Security

The RedStone platform has passed multiple security audits by firms like Halborn, Codespect, AuditOne, Cantina, PeckShield, and ABDK. These audits help ensure that the system is secure and free from vulnerabilities.

In addition, RedStone stores cryptographically signed records off-chain and uploads them to Arweave, a decentralized storage network. This makes sure that historical data remains tamper-proof and verifiable.

What Is RedStone Used For?

RedStone’s oracle services are useful in many areas of DeFi and blockchain applications, including lending, trading, staking, and yield farming.

1. Decentralized lending

Lending platforms need accurate price data to set borrowing limits and avoid bad loans. RedStone provides real-time prices to ensure fair lending conditions.

2. Perpetual trading

Traders in perpetual futures markets rely on accurate prices to settle contracts. RedStone helps decentralized exchanges by delivering up-to-date market data.

3. Staking and yield farming

Protocols that offer staking and yield farming need accurate price feeds to calculate rewards. RedStone ensures these calculations are based on trusted data.

4. Stablecoins and digital assets

Stablecoin projects need reliable exchange rates to maintain their value. RedStone helps them track real-world prices and keep their pegs stable.

5. Multi-chain applications

Since RedStone works across multiple blockchain networks, it’s useful for projects that operate on different chains. Its flexible system makes integration easy for developers.

The RED Token

RedStone’s native token, RED, was launched to help decentralize its oracle network and support its future growth. The token max supply is capped at 1 billion RED tokens, and 30% were made available at launch. The RED tokens follow the ERC-20 standard on Ethereum and can also be used on networks like Solana and Base through a cross-chain system called Wormhole.

The RED token is mainly used for staking, which helps keep the RedStone network secure. Data providers and token holders can stake their RED tokens through RedStone’s system, which works with EigenLayer’s AVS. In return, they can earn rewards in different cryptocurrencies like ETH, BTC, SOL, and USDC from users who rely on RedStone’s data.

The tokens are distributed to support the community and ecosystem. The breakdown 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 of the tokens (70%) will be locked at first and released gradually over four years.

Closing Thoughts

RedStone is a blockchain oracle that aims to provide reliable, cost-efficient price feeds for DeFi and other blockchain applications. RedStone offers multiple methods for accessing and using data with support for more than 70 blockchain networks. Its modular approach ensures efficient data delivery, while the integration of EigenLayer’s AVS helps to provide security.

Further Reading

What Is EigenLayer?

What Are Actively Validated Services (AVS)?

What Is Liquid Staking?

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