What Is RedStone Oracles? The Modular Data Feed Revolutionizing DeFi

RedStone Oracles is a modular blockchain oracle network that provides real-time data feeds to smart contracts across more than 70 blockchains. Unlike traditional oracles that continuously push data on-chain regardless of whether it's needed, RedStone uses an innovative approach that stores data off-chain and delivers it on-demand, significantly reducing costs while maintaining security and reliability.

Founded in 2020, RedStone has emerged as the fastest-growing oracle provider in the DeFi ecosystem, securing over $10 billion in total value and serving more than 170 projects including Morpho, Venus, Pendle, and Compound. The platform specializes in providing data feeds for yield-bearing collateral, particularly liquid staking tokens (LSTs) and liquid restaking tokens (LRTs) that other oracle providers struggle to support.

What makes RedStone unique is its modular architecture, which separates data collection from data delivery. This design allows the platform to support both push and pull oracle models across diverse blockchain networks, from EVM-compatible chains like Ethereum and Arbitrum to non-EVM networks like TON, Starknet, and Fuel. The flexibility enables developers to choose the data delivery method that best fits their specific use case.

Before diving deeper into RedStone's solution, it's important to understand why oracles matter. Blockchains are isolated environments by design. While this isolation provides security and immutability, it creates a fundamental limitation: smart contracts cannot natively access external data or communicate with systems outside their blockchain.

This limitation is known as the "oracle problem." When a lending protocol needs current asset prices to determine loan collateralization, or when a prediction market requires sports scores to settle bets, smart contracts need external data. Oracles bridge this gap by fetching, verifying, and delivering off-chain information to on-chain applications.

The challenge lies in maintaining decentralization and trust. If smart contracts depend on centralized oracle providers, those providers become single points of failure that can compromise the entire system. According to research from the Bank for International Settlements on oracle manipulation, DeFi protocols lost over $403 million in 41 separate oracle manipulation incidents in 2022 alone.

RedStone addresses these challenges through its modular design and multiple validation layers, which we'll explore in detail.

RedStone's architecture consists of four key components that work together to deliver reliable data feeds.

RedStone aggregates price information from diverse sources including centralized exchanges, decentralized exchanges, liquidity pools, traditional finance custodians, and specialized APIs. This multi-source approach provides deeper price discovery compared to oracles that rely on limited data providers.

For specialized assets like liquid staking tokens, RedStone implements custom pricing methodologies. The platform can calculate prices based on underlying asset values, proof of reserves data, or on-chain liquidity metrics depending on what's most appropriate for each asset type.

All price feeds are stored off-chain in what RedStone calls the Data Distribution Layer (DDL)—a decentralized cloud storage system built on Arweave blockchain. This off-chain storage approach is fundamental to RedStone's cost efficiency. By not storing every price update directly on expensive blockchain storage, the platform dramatically reduces gas costs compared to traditional push oracles.

RedStone implements multiple validation mechanisms to ensure data integrity. Data providers cryptographically sign each price feed with timestamps. Before data reaches smart contracts, it undergoes validation through consensus requirements—multiple independent providers must agree on price values.

The platform has integrated with EigenLayer's Actively Validated Services (AVS) to add economic security. Data providers stake assets that can be slashed if they provide inaccurate information, creating strong economic incentives for honest behavior.

This is where RedStone's modularity truly shines. The platform supports three distinct delivery models, allowing developers to choose the approach that best fits their application.

RedStone's Push Model operates similarly to conventional oracles like Chainlink. Data is pushed to on-chain storage at regular intervals based on heartbeat (time-based) and deviation threshold (price change) parameters.

When implementing the Push Model, relayers monitor price feeds off-chain and automatically trigger on-chain updates when conditions are met. The smart contract stores these prices in on-chain storage, making them continuously available for any protocol to read through familiar interfaces like the Chainlink AggregatorV3.

This model works well for applications that need consistent data availability without user-triggered updates. Lending protocols like Compound and Spark use the Push Model because they must continuously monitor collateral values across all user positions. The protocol—not individual users—needs reliable, always-available price data to trigger liquidations when necessary.

The advantage of RedStone's Push implementation over traditional push oracles is customization. While other providers dictate update parameters, RedStone gives protocols control over when and how prices update, optimizing for their specific security and cost requirements.

The Pull Model represents RedStone's most innovative approach. Instead of continuously pushing data on-chain, prices are fetched only when a transaction specifically needs them. The data travels within the transaction itself as signed payloads attached to the user's call data.

Here's how it works: When a user initiates a transaction that requires price data—like opening a leveraged position on a perpetual trading platform—the application fetches the latest signed price feeds from RedStone's cache layer. These signed payloads are then attached to the user's transaction. The smart contract validates the signatures and timestamps before using the data.

This approach offers several advantages. First, gas costs are dramatically lower since data isn't stored permanently on-chain. According to analysis comparing oracle models, during periods of high network congestion, traditional push oracles can spend $100,000+ on updates during relatively short timeframes, with individual updates costing over $100 each. The Pull Model eliminates these costs by only processing data when actually needed.

Second, the Pull Model provides flexibility in who pays for oracle services. The fee for bringing data on-chain appears as a slightly increased gas fee in the user's transaction. Protocols can choose to subsidize these costs or pass them directly to users, creating more transparent fee structures.

Third, protocols can access many more price feeds simultaneously without proportionally increasing costs. A derivatives platform might need prices for dozens of trading pairs; with the Pull Model, they can fetch all necessary feeds in a single transaction without maintaining separate on-chain storage for each.

The Pull Model is ideal for high-frequency applications like perpetual trading platforms, options protocols, and derivatives markets where users trigger price checks through their own transactions rather than relying on protocol-level monitoring.

RedStone's X Model (also called the hybrid model) addresses a specific challenge in DeFi: maximum extractable value (MEV) attacks and front-running. In standard oracle implementations, there's a delay between when price data is requested and when it's delivered, creating opportunities for malicious actors to exploit price movements.

The X Model delivers near-instantaneous price settlement by combining elements of both push and pull approaches with additional security guarantees. Prices are settled in real-time at the next block, making it one of the fastest oracle solutions available. This speed is crucial for applications like options protocols where precise execution price matters for fairness.

The model includes cryptographic proofs that prevent transaction manipulations, ensuring users get exactly the prices they expect when transactions execute. Recently, RedStone introduced RedStone Bolt for MegaETH, which achieves sub-second price updates by co-locating oracle nodes with sequencer nodes and streaming price data directly from major exchanges.

Understanding how RedStone compares to established oracle providers helps clarify its position in the ecosystem.

Chainlink pioneered decentralized oracles and remains the market leader with the longest track record. Chainlink focuses primarily on the Push Model and has deep integration with established DeFi protocols like Aave and Uniswap. The platform's strength lies in its mature infrastructure, extensive audits, and broad industry trust. However, Chainlink's push-only approach can be expensive during network congestion, and the platform has been slower to support emerging blockchain networks and specialized assets.

Pyth Network specializes in the Pull Model and initially launched on Solana before expanding cross-chain via the Wormhole bridge. Pyth emphasizes the number of data publishers in its network and optimizes for high-frequency data delivery to perpetual trading platforms. The platform excels in low-latency environments but lacks push oracle capabilities, creating integration burdens for protocols built around traditional oracle interfaces.

RedStone distinguishes itself as the only major provider offering both push and pull models cross-chain. This hybrid approach allows RedStone to serve both established protocols like Venus and Morpho (using Push Model) while rapidly expanding to emerging markets like Berachain, Monad, and MegaETH (using Pull Model).

RedStone's modular data sourcing engine provides another advantage. While Chainlink relies on node operator aggregators and Pyth sources from publishers, RedStone collects information directly from diverse sources and can implement custom pricing logic. This flexibility enables RedStone to provide exclusive data feeds that competitors can't match, particularly for complex assets like liquid restaking tokens.

One of RedStone's key differentiators is its focus on specialized assets that traditional oracles struggle to price accurately. Liquid staking tokens and liquid restaking tokens represent a growing category of DeFi primitives that don't have straightforward market prices.

For example, when a user stakes ETH through Lido to receive stETH, the stETH token represents both the original ETH plus accumulated staking rewards. The value isn't simply determined by secondary market trading—it should reflect the underlying ETH backing plus accrued yield. Mis-pricing these assets can lead to cascading liquidations in lending markets.

RedStone has developed specialized pricing methodologies for these complex assets, combining on-chain proof of reserves data with liquidity pool information and redemption mechanisms. This expertise has made RedStone the preferred oracle for protocols building on top of liquid staking infrastructure.

The platform provides data feeds for over 1,250 assets across various categories including traditional cryptocurrencies, stablecoins, LSTs and LRTs, tokenized Bitcoin products, real-world assets, and even memecoins during periods of high demand.

RedStone's modular architecture enables rapid deployment across diverse blockchain networks. The platform currently operates on more than 70 chains including Ethereum, Arbitrum, Base, Optimism, Polygon, Avalanche, BNB Chain, Solana, TON, Starknet, Fuel Network, Berachain, and Monad.

This extensive chain support matters because DeFi is increasingly multichain. Cross-chain liquidity movement has become essential as users seek optimal yields and execution across different networks. RedStone's ability to provide consistent data across all these environments enables protocols to deploy multichain strategies without rebuilding oracle integrations for each network.

The platform's growth has been remarkable. According to recent market analysis, RedStone experienced a 1,400% year-over-year increase in Total Value Secured, reaching over $6.6 billion in December 2024. This growth outpaces both Chainlink and Pyth, demonstrating strong developer and protocol adoption.

RedStone has raised approximately $22 million from leading investors including Lemniscap, Blockchain Capital, Coinbase Ventures, Maven 11, Arrington Capital, IOSG, SevenX Ventures, and prominent industry angels like Stani Kulechov (Aave founder), Sandeep Nailwal (Polygon co-founder), and Emin Gün Sirer (Ava Labs founder).

In early 2025, RedStone launched the RED token to power its oracle network economics. The token serves multiple purposes within the ecosystem.

Data providers and community members can stake RED tokens to support network security. By locking tokens, participants help ensure honest and timely data feeds, with staked assets subject to slashing if providers deliver inaccurate information. This staking mechanism creates economic alignment between token holders and network integrity.

RED token holders participate in protocol governance, voting on parameters like acceptable deviation thresholds, addition of new data feeds, and allocation of development resources. This decentralized governance approach allows the community to guide RedStone's evolution.

Network users pay fees to access RedStone's data feeds. A portion of these fees, collected in assets like ETH and USDC, is distributed to token stakers as rewards. This creates a sustainable economic model where the protocol's utility directly benefits those securing the network.

The RED token has a fixed total supply of 100 billion tokens with the following allocation: 48.3% for ecosystem support including data providers and protocol development, 25% for team compensation, 25% for investors, and 10% for early participants through pre-launch campaigns.

RedStone's oracle infrastructure powers critical DeFi operations across multiple categories.

Protocols like Morpho, Venus, and Silo rely on RedStone to provide accurate collateral valuations. When users deposit assets as collateral to borrow other tokens, the protocol must continuously monitor whether positions remain adequately collateralized. RedStone's reliable price feeds ensure fair liquidations while protecting user positions from premature liquidation due to pricing errors.

Pendle Finance, which enables fixed-yield strategies on yield-bearing assets, uses RedStone to price its principal and yield tokens accurately. These complex derivatives require precise oracle data to function correctly, and RedStone's specialized pricing methodologies provide the necessary accuracy.

Derivatives platforms need low-latency, manipulation-resistant price feeds to enable fair trading. RedStone's Pull Model and X Model provide the speed and security these platforms require. During the $2 billion DeFi liquidation event in February 2024, RedStone pushed 119,000 updates within 24 hours, with ETH/USDC price updates exceeding Chainlink by 30%.

As an official oracle provider for major tokenized funds including BlackRock BUIDL, Apollo ACRED, VanEck VBILL, and Hamilton Lane SCOPE, RedStone bridges traditional finance with DeFi infrastructure. These tokenized real-world assets require reliable pricing that reflects both on-chain activity and underlying asset values—exactly what RedStone's flexible architecture provides.

RedStone prioritizes developer experience through comprehensive documentation and straightforward integration processes. For EVM-compatible chains, developers can integrate RedStone price feeds with just a few lines of code.

This simple interface hides the complexity of signature verification, timestamp checking, and data validation, allowing developers to focus on their application logic rather than oracle integration details.

For protocols that need push-style oracles, RedStone's contracts implement standard interfaces compatible with Chainlink's AggregatorV3, making migration straightforward for projects already using traditional oracle systems.

Oracle security is paramount in DeFi, where pricing errors can trigger millions of dollars in unintended liquidations. RedStone has maintained a perfect security record with zero mispricing events since inception—a remarkable achievement in an ecosystem where oracle manipulation is common.

This reliability stems from multiple factors: rigorous validation requiring consensus among independent data providers, economic security through staking and slashing mechanisms, continuous automated testing and monitoring, regular third-party security audits from firms like Hacken, Code4rena, and others, and infrastructure redundancy ensuring continuous operation even during partial outages.

The platform's oracle contracts have been audited by multiple security firms including Code4rena, Peckshield, ABDK, Auditone, and Halborn. These audits cover both smart contract security and the broader oracle infrastructure design.

RedStone represents an evolution in oracle design away from monolithic, one-size-fits-all approaches toward modular, use-case-optimized solutions. This trend aligns with broader movements in blockchain infrastructure like modular blockchains and application-specific rollups.

As DeFi continues expanding to new chains and supporting more complex financial products, the flexibility that modular oracles provide becomes increasingly valuable. Protocols built on Eco's cross-chain infrastructure, for example, need oracles that work seamlessly across multiple networks without requiring separate integrations for each chain.

The upcoming developments in RedStone's roadmap include expanding to additional blockchain networks, especially emerging high-performance chains, launching near-zero latency price feeds for real-time applications, introducing solutions to simplify enterprise and institutional participation in on-chain markets, and developing specialized data feeds for artificial intelligence and machine learning applications.

What is the main difference between RedStone and Chainlink?

RedStone offers both push and pull oracle models while Chainlink focuses primarily on push oracles. RedStone's modular architecture allows it to support over 70 blockchains including non-EVM chains, while Chainlink has deeper penetration in established Ethereum-based DeFi. RedStone specializes in yield-bearing assets like LSTs and LRTs that traditional oracles struggle to price, whereas Chainlink excels in blue-chip asset pricing and has the longest security track record.

How does RedStone's Pull Model save on gas costs?

The Pull Model stores data off-chain and only brings it on-chain when a specific transaction needs it. Instead of paying continuous storage costs and update transaction fees, users pay only for the data they actually use, embedded in their transaction's gas fee. This can reduce oracle costs by 90% or more compared to traditional push oracles, especially during periods of high network congestion.

Which blockchain networks does RedStone support?

RedStone operates on more than 70 blockchain networks including Ethereum, Arbitrum, Base, Optimism, Polygon, Avalanche, BNB Chain, Solana, TON, Starknet, Fuel Network, Berachain, Monad, MegaETH, and many others. The modular architecture allows rapid deployment to new chains, particularly rollups built on frameworks like OP Stack, Arbitrum Orbit, Polygon CDK, or zkSync's zkStack.

What is the RED token used for?

The RED token powers RedStone's economic model through three primary functions: staking for network security with potential slashing for dishonest behavior, governance allowing token holders to vote on protocol parameters and development priorities, and fee distribution where stakers receive portions of protocol fees collected in ETH and USDC. The token aligns incentives between data providers, developers, and users of the oracle network.

Can I use RedStone for NFT pricing or non-financial data?

Yes. While RedStone specializes in financial price feeds, its architecture supports any type of external data that smart contracts might need. The platform has provided data feeds for NFT floor prices, sports outcomes for prediction markets, weather data, and various other use cases beyond traditional asset pricing. Custom data feeds can be implemented based on specific application requirements.