RedStone X Ether.fi: A case to explore
Last updated
Last updated
RedStone Oracles and Ether.fi, a prominent restaking protocol, have formed a restaking delegation partnership. Their collaboration aims to enhance the security of RedStone Oracle by partially extending Ethereum’s validator set. This move increases the network’s value and diversity.
Under the delegation agreement, over 20,000 node operators from Ether.fi will manage RedStone’s Actively Validated Service (AVS) using the native liquid restaking token, eETH. The restaked Ether acts as a safeguard against liveness failures and crypto-economic attacks within RedStone’s node network. This arrangement ensures that RedStone Oracle is secured by robust crypto collateral and consistently verified by a diverse validation set, making it the first oracle network secured through restaking.
Mike Silagadze, CEO of Ether.fi, emphasizes the importance of expanding Ethereum’s validator set for crypto innovation. He looks forward to RedStone Oracles leveraging Ether.fi’s ecosystem for enhanced security.
RedStone Oracles faces common security challenges in the Oracle sector, where rapid growth must match security measures. Access to external capital helps stabilize the system’s cryptoeconomics, incentivizing high-quality data service from node operators. Unlike most Oracle systems relying solely on internal token security, RedStone pioneers dual-token safety by extending its model to an external, uncorrelated LRT token. This mitigates coordinated attacks where adversaries accumulate Oracle tokens to harm the network.
Jakub Wojciechowski, RedStone Oracles’ CEO, believes this novel agreement benefits all parties. RedStone can scale efficiently by boosting its security backing. The design exemplifies the health of decentralized trust in Oracles, essential for crypto and DeFi.
EigenLayer’s demand side also grows, especially with RedStone Oracles incorporating an Actively Validated Service (AVS) in their data validation process on EigenLayer’s mainnet.
For deeper insights into Liquid Restaking Tokens (LRTs), Actively Validated Services (AVSes), and EigenLayer’s cryptoeconomic security, explore the Liquid Restaking Report1.
