Red Stone Oracles
RED STONE ORACLES
RedStone is an Oracle that delivers updated, reliable, and kinds of data for your dApp and smart contracts on multiple Layer 1 and Layer2's.
The reasons for creating the redstone oracles project are;
Pushing data on-chain regardless of whether it’s used or not is a big waste of resources, that should be prevented.
Obsolete and monolithic architecture is limiting the scalability (and it’s difficult to list any new assets or reduce the latency)
Also lots of protocols cannot fully decide on trusted sources and data update conditions.
End-users are totally dependent on relayers and could be set apart from the service.
The modular architecture of redstones maintains data integrity from source to smart contracts.This is the key characteristic of Redstones that the project is different from the traditional way.
The conventional method of inputting data into storage for smart contracts was suitable for infrequent updates and few assets. However, with the rise of DeFi tokens and derivatives, low latency is essential, increasing maintenance costs. RedStone suggests a new modular approach using a data availability layer to optimize asset broadcasting and on-chain processing.
RedStone’s innovative modular design for blockchain oracles provides customizable and adaptable solutions for a variety of decentralized applications, particularly in the DeFi sector.
Some of the key features and benefits below:
Customization and Flexibility
RedStone’s modular architecture allows developers to select and configure oracle services according to their specific application requirements. This means that dApps can choose the type of data they need, the sources they prefer, and the frequency of updates, ensuring that the oracle service is tailor-made for them.
Cross-Chain Compatibility
RedStone’s modular design’s standout feature is it’s cross-chain functionality, supporting Ethereum, ZK-rollups, Optimistic rollups, and other L1 and L2 solutions.
3 Models of Oracle
Depending of the smart contract architecture and business demands Redstone Oracle can deliver data using 3 different models, that means there 3 ways to integrate and these ways are:
1-RedStone Core: Data is directly injected to user contracts and achieving maximum gas efficiency which means low cost data access and maintaining a great user experience as the whole process is done in a single transaction.This model is a secure,flexible, scalable and a battle-tested way and it’s almost protecting >$100M TVL of DeFi Protocols across various mainnets. The price feeds have been injected to more than ~50K transactions.
2-RedStone Classic: Data is pushed into on-chain storage via relayer. This model is for the ones who prefers the traditional oracles model, that want to have full control of the data source and update conditions.
You can choose this model and it makes sense just if;
-If there is an existing well-audited codebase and the team prefers not to make even tiny amendments.
-If the protocol is deployed on a private network or a chain where the gas fees are low.
-If the prices don’t need to be updated too frequently.
This model brings secure & flexible oracles to all EVM-compatible L1-L2 chains.In addition, in the first part it brings off-chain relayer responsible for pushing data on-chain in a traditional way using environment variables and in the second part it brings the on-chain contracts which enable storing prices and getting them through a familiar interface
for ease.
3-RedStone X: Targeting the needs of the most advanced protocols such as perpetuals,futures, options and derivatives by eliminating the front-running risk providing price feeds at the very next block after users interactions.
This model offers an extreme protection against front-running and also implements an execution pattern where transactions are processed in 2 steps;
-The user records an on-chain intent to interact with the protocol, preventing front-running price manipulation.
-The price is updated on the blockchain in the second step by anyone, ensuring transaction settlement.
That means in this model,a user begins a transaction on-chain without a full understanding of its context, preventing arbitrage through front-running price delivery. The price is posted on-chain in the next block for validation and settlement. The model has zero latency data also.
Security and Decentralization
RedStone prioritizes security and decentralization by ensuring each part of the oracle stack operates securely and in a decentralized way. Data providers are encouraged to maintain a high-quality of data and also their performance and data’s reliability are transparently tracked on the blockchain.
Efficiency and Cost-Effectiveness
RedStone’s modular design reduces costs and improves efficiency by letting dApps customize oracle services.
Data Solutions:
RedStone’s versatile oracle system goes beyond traditional price feeds, offering various data types like off-chain information, real-world events, and complex financial metrics. This innovation allows dApps to integrate diverse datasets into operations and smart contracts, enhancing their functionality. The modular design of RedStone represents a major advancement in oracle technology, providing a secure, cost-effective solution for DeFi and beyond, supporting various blockchains and data types for developers creating advanced dApps.
The Principle of Modular Design
The essence of a modular design is to construct a system with separate, replaceable modules that have clear interfaces for easy integration,flexibility and scalability. In this way users have a great control over data feeds and system functionalities.
Versatility in Data
RedStone’s modular design provides a wide variety of data options, catering to the needs of DeFi and Web3 protocols, allowing developers to customize data sources.
Data Consumption Models
RedStone offers developers three data consumption options:
-long-tail models,
-Lp models
and ecosystem-native models for protocol customization.
Scalability
Scalability is crucial for blockchain projects. RedStone’s modular design allows for easy scaling and modifications, staying innovative over time.
Integration
RedStone’s modular design facilitates real-world innovation by connecting with various blockchain ecosystems like Ethereum, Avalanche, and Polygon, promoting interoperability. RedStone provides that with its modular design serving as a bridge between different protocols.
Authorization and Accessibility
RedStone emphasizes supporting developers through its modular design, user-friendly tools, and documentation to enable all experience levels to utilize its oracle system effectively.
As a result,
RedStone’s modular design evolves alongside blockchain and DeFi, adapting to changing needs of the decentralized ecosystem for continuous improvement.
RedStone’s modular design represents innovation in oracles by offering a customizable, scalable, and interoperable solution for the decentralized future, driving the evolution of oracles and empowering developers.
