RedStone - A Short intro to the New Era of Oracles for Modern DeFi

(This article was originally published on my personal blog:https://chainguys.github.io/)

RedStone?What?

RedStone is an innovative new Oracle system designed to meet the evolving data needs of decentralized finance (DeFi) protocols and dApps on multiple layer 1 and layer 2 networks.

How Current Oracles let you down :

Existing Oracle solutions have some key limitations that RedStone aims to solve:- Pushing data on-chain continuously wastes resources if the data is unused.

• Monolithic architecture makes it difficult to scale up listed assets or reduce latency.

• Protocols can't fully control trusted data sources and update frequencies.

• Users depend completely on relayers and risk being cut off.

RedStone's Solutions:

RedStone provides a radically new Oracle architecture tailored for modern DeFi:- Avoid mandatory continuous on-chain delivery.

• Enable users to self-deliver signed Oracle data on-chain.

• Leverage the decentralized Streamr network to deliver signed data to users.

• Use token incentives to motivate reliable data feeds from providers.

• Archive immutable Oracle data on Arweave for accountability.

Modular Design for Flexibility:

RedStone uses a modular approach where data is stored off-chain and only fetched when needed. This allows broad asset coverage and high update frequency without bloating on-chain data.3 Integration Options: Based on smart contract needs, RedStone offers:

• RedStone Core - injects data into user transactions for efficiency.

• RedStone Classic - pushes data via relayer for control.

• RedStone X - eliminates front-running risks for derivatives.Conclusion:

With its innovative architecture, RedStone unlocks the next evolution of customizable, reliable, and efficient Oracle solutions tailored for the future of DeFi.