RedStone has stepped into new territory by becoming the first major oracle provider to integrate the Ethereum restaking protocol on EigenLayer, as announced on October 23. While the service remains in its testnet phase, RedStone's ambition is clear: to create a scalable framework that dynamically enhances cryptoeconomic security in step with the growth of decentralized finance (DeFi).
This pioneering move sees RedStone’s oracles, which currently operate across more than 50 blockchain networks and safeguard nearly $3.5 billion in cryptocurrency assets, advancing their security. This development, described as a "mature oracle system" by Eigen Labs' Chief Operating Officer Alan Curtis, emphasizes the enhanced security provided through restaked guarantees.
Decentralized oracles fulfill a crucial role by linking blockchain networks with external data sources such as financial markets. The process of restaking utilizes tokens that are already staked as collateral to secure multiple protocols simultaneously. EigenLayer alone secures dozens of third-party services, supported by around $11 billion in restaked collateral, according to DefiLlama.
Meanwhile, another oracle service, eOracle, is also operational on EigenLayer, backed by approximately $9 billion in Ether as of October 22. Large oracle providers like RedStone and Chainlink are becoming key players in traditional financial arenas.
In a related development, Chainlink unveiled plans on October 21 to create an onchain database of corporate actions leveraging artificial intelligence and decentralized oracle technology.
Founder Sreeram Kannan of EigenLayer discussed the protocol's focus on onboarding Web3 applications post the October 1 release of its native token, EIGEN. Initially targeting crypto-native applications such as DeFi and gaming, EigenLayer aims to broaden into wider consumer markets once it reaches a critical mass.
EigenLayer also intends to attract restakers with a new incentive program, unveiled on September 17, offering rewards consisting of EIGEN emissions valued at about 4% of the total token supply.
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