RedStone Oracles and Ether.fi, a leading restaking protocol, have entered into the restaking delegation partnership. This collaboration intends to enhance the RedStone Oracle’s security schema by partially extending the security of Ethereum’s validator set, thereby increasing the network’s value and diversity.
As per the delegation agreement, a subset of over 20,000 node operators from Ether.fi will manage RedStone’s Actively Validated Service (AVS) and employ the Ether.fi’s native liquid restaking token – eETH. The restaked Ether will serve as a safeguard against both liveness failures and crypto-economic attacks within the network of RedStone’s node providers. This will guarantee that RedStone Oracle is secured by the most secure crypto collateral and consistently verified by the most diverse validation set in the entire industry, thereby establishing the first oracle network secured by the power of restaking.
“Expanding the security of Ethereum’s validator set is at the forefront of crypto innovation, providing unparalleled security for out-of-protocol dApps.“ says Mike Silagadze, CEO of Ether.fi. “I’m personally thrilled to witness RedStone Oracles leveraging the Ether.fi ecosystem to bolster its security. We’re also working on some further integrations that we’ll share soon.”
Ether.fi Will Enhance The Cryptoeconomic Security Of RedStone’s Oracles In A Complementary Manner
RedStone Oracles as an innovative and quickly growing player in the Oracle sector suffers from the common problems of booststraping security at a pace that matches the growth of the Total Value Secured (TVS). Having access to an external pool of capital will help to stabilize the system cryptoeconomics and ensure that the node operators are properly incentivised to provide high-quality data service.
Additionally, most Oracle systems rely only on internal token security guarantees and suffer from the vulnerability of coordinated attacks where a sophisticated adversary will strategically accumulate a large amount of Oracle tokens to simultaneously attack the Oracle network and short the Oracle token. RedStone by extending their security model to an external and uncorrelated LRT token will mitigate this attack vector and pioneer the new higher standards of dual-token Oracle safety mechanism.
“We are firmly convinced that this novel agreement, which showcases a leading oracle solution utilizing the restaking primitive to enhance system security against malicious threats, is immensely advantageous for all parties involved.“ says Jakub Wojciechowski, CEO of RedStone Oracles. “RedStone, equipped with the ability to arbitrarily boost the value of its security backing, can swiftly and efficiently scale its services.”
The proposed design serves as yet another testament to the health of a dual-sided marketplace for decentralized trust incorporated in Oracles – the backbone of crypto & DeFi. It also highlights the consistent growth in EigenLayer’s demand side.
“With the mainnet launch of Eigenlayer we are excited to witness RedStone Oracles actively working to incorporate an Actively Validated Service (AVS) in their data validation process, built on Eigenlayer,” said Sreeram Kannan, the founder of EigenLayer.
If you want to dive deeper into the realm of Liquid Restaking Tokens (LRTs), Actively Validated Services (AVSes) and cryptoeconomic security provided by EigenLayer, immerse yourself in the Liquid Restaking Report.
About RedStone
RedStone is a modular oracle delivering diverse, high-frequency data feeds to EVM Layer1, Layer2, Rollup-as-a-Service networks, and beyond, i.e., Starknet, Fuel Network, or TON.
By responding to market trends and developer needs, RedStone can support assets not available elsewhere. The modular design allows for data consumption models adjusted to specific use cases, i.e., capital-efficient LSTfi and early support of LRTs. RedStone raised almost $8M from Lemniscap, Blockchain Capital, Maven11, Coinbase Ventures, Stani Kulechov, Sandeep Nailwal, Alex Gluchovski, Emin Gun Sirer, and other top VCs & Angels.
