Anteneh Sisay

Key Takeaways

RedStone is a modular blockchain oracle that delivers customizable, low-cost price feeds to Web3 and decentralized finance (DeFi) applications.

RedStone uses the EigenLayer Actively Validated Service (AVS) to improve the security and accuracy of its price feeds.

Its oracle services support use cases across DeFi, including lending protocols, perpetual trading, stablecoins, and yield farming.

The RED token is used for staking within RedStone's network, allowing data providers and holders to participate in network security and earn rewards.

Introduction

RedStone is a blockchain oracle designed to bring real-world data into smart contracts on different blockchains. It aims to provide reliable price feeds and other data to decentralized applications (DApps) at low cost. Oracles are essential for Web3 because smart contracts cannot access external information on their own.

What Is RedStone?

RedStone is a system that provides financial and market data to DApps. Unlike traditional oracles that store data directly on-chain, RedStone uses a modular architecture that separates data collection from data delivery. This approach allows it to scale efficiently across many blockchain networks without requiring constant on-chain updates.

Since its launch in 2021, RedStone has been adopted by a range of DeFi projects, including EtherFi, Ethena, Pendle, Solv, Venus, and Puffer. Its design allows developers to integrate price feeds without significant infrastructure overhead.

How RedStone Works

RedStone collects price information from multiple sources, including centralized and decentralized exchanges. This data is processed and cryptographically signed before being made available to smart contracts. The system has a modular design, meaning data collection and delivery are handled separately for better efficiency.

Pull model

In the Pull model, DApps fetch the latest data only when they need it. Data is stored off-chain and retrieved by the smart contract at the time of a transaction. This reduces costs because the blockchain does not need to be updated continuously.

Push model

In the Push model, RedStone continuously updates price data on-chain. This suits applications that need real-time prices at all times, such as lending protocols or trading platforms.

X model

The X model adds a layer of protection against front-running attacks. It ensures that the price used in a transaction is locked in and cannot be manipulated between when it is fetched and when it is executed.

Hybrid model

The Hybrid model, introduced as part of ERC-7412, combines push and pull strategies. DApps can fetch data on demand while still having access to regularly updated on-chain price information.

RedStone Actively Validated Service (AVS)

In 2025, RedStone launched an Actively Validated Service (AVS) using the EigenLayer protocol's restaking mechanisms. This service improves the security of price feeds by using a network of validators to verify data accuracy before it is published on-chain. The goal is to prevent price manipulation and increase trust in the data RedStone provides. Liquid staking participants using EigenLayer can also contribute to this validation process.

Security

RedStone has passed multiple security audits by firms including Halborn, Codespect, AuditOne, Cantina, PeckShield, and ABDK. In addition, RedStone stores cryptographically signed records off-chain and uploads them to Arweave, a decentralized storage network, to keep historical data tamper-proof and verifiable.

What Is RedStone Used For?

RedStone's oracle services support a wide range of DeFi applications. Its ability to operate across many chains makes it useful for projects that need reliable data in different environments.

Decentralized lending

Lending platforms rely on accurate price data to set borrowing limits and trigger liquidations when collateral values drop. RedStone delivers real-time prices to help these platforms manage risk.

Perpetual trading

Traders in perpetual futures markets need accurate, tamper-resistant prices to settle contracts fairly. RedStone provides up-to-date market data to decentralized exchanges running these products.

Staking and yield farming

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

Stablecoins and digital assets

Stablecoin projects need reliable exchange rates to maintain their pegs. RedStone tracks real-world prices and provides the data these projects need to adjust their mechanisms.

Multi-chain applications

Since RedStone works across more than 70 blockchain networks, it is useful for projects that operate on multiple chains. Its flexible architecture makes integration straightforward for developers.

The RED Token

RedStone's native token, RED, was launched to help decentralize the oracle network and support its growth. The total supply is capped at 1 billion RED tokens, with 30% available at launch. The RED token follows the ERC-20 standard on Ethereum and is also available on Solana and Base via a cross-chain bridge powered by Wormhole.

RED is primarily used for staking within RedStone's network. Data providers and token holders can stake RED through the system's integration with EigenLayer's AVS. In return, they can earn rewards paid out in RED.

FAQ

What is RedStone?

RedStone is a modular blockchain oracle that provides price feeds and other market data to decentralized applications across multiple blockchain networks. It currently supports over 1,250 assets.

What does the RED token do?

The RED token is used for staking in the RedStone network. Data providers and token holders can stake RED to contribute to network security and earn rewards.

How is RedStone different from other oracles?

RedStone uses a modular architecture that separates data collection from data delivery. This allows it to offer multiple data models (Pull, Push, X, Hybrid) and scale across many blockchains more efficiently. It also integrates with EigenLayer's AVS to strengthen data security.

Is RedStone secure?

RedStone has undergone multiple independent security audits and stores cryptographically signed data records on Arweave to ensure historical data is tamper-proof. Its AVS integration adds an extra layer of validator-based verification before data is published on-chain.

What DeFi protocols use RedStone?

RedStone is used by several well-known DeFi projects, including EtherFi, Ethena, Pendle, Solv, Venus, and Puffer. Its multi-chain support also makes it attractive for newer cross-chain protocols.

Closing Thoughts

RedStone is a blockchain oracle that aims to provide reliable, cost-efficient price feeds for DeFi and other blockchain applications. With support for over 70 blockchain networks and multiple data delivery models, it offers flexibility for developers building across different chains.

Further Reading

Blockchain Oracles Explained

What Is EigenLayer?

What Are Smart Contracts and How Do They Work?

What Is Decentralized Finance (DeFi)?

What Is Liquid Staking?

Disclaimer: This content is presented to you on an "as is" basis for general information and or educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the content is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. For more information, see our Terms of Use, Risk Warning and Binance Academy Terms.