An interesting short Case Study-10:RedStone Oracles X Mento

Mento, a decentralized exchange on the Celo blockchain, supports the peg of the Celo Dollar (cUSD) to the US Dollar through its automated market maker (AMM) protocol. Mento Labs has chosen RedStone as its oracle provider, enhancing its position as a leading stablecoin provider and preparing for expansion. The collaboration with RedStone addresses Mento's need for a scalable and customizable decentralized oracle solution.

Initially exploring various oracle providers and developing an in-house solution, Mento found RedStone's flexibility and high-security standards decisive in their choice. The implemented RedStone Oracles include a robust data quality assurance process with an uncertainty score calculated at data provider nodes. This score considers factors like bid/ask spread deviation, liquidity on different sources, and checks against historical deviations to detect potential price manipulation attempts. The uncertainty score mechanism consists of three layers, ensuring source-specific reliability, market certainty, and consensus among operators.

Looking ahead, the Mento-RedStone partnership plans to expand to other Layer 1 (L1) and Layer 2 (L2) blockchain solutions, extending Mento's capabilities. The commitment to collaborating with new protocols launching stablecoins using Mento's technology aims to solidify Mento's standing as a leading stablecoin provider and provide stability to emerging projects.