RedStone introduces the first major oracle provider to launch on EigenLayer, an Ethereum restaking protocol, as shared with News website on October 23.
Although still in the testing phase, RedStone aims to build a “scalable framework” to increase security as decentralized finance (DeFi) continues to expand.
According to RedStone’s website, its oracles operate on over 50 blockchain networks and help secure nearly $3.5 billion in crypto assets.
Alan Curtis, COO of Eigen Labs, said that this launch highlights RedStone’s strong oracle system, which is now enhancing security with the help of restaking guarantees.
How Decentralized Oracles Connect Blockchain with External Data
Decentralized oracles connect blockchain networks to outside data sources, like financial market information.
Restaking allows a staked token, which is used as collateral with a validator for rewards, to be used to secure other protocols at the same time.
EigenLayer secures many third-party protocols, called actively validated services (AVSs), with about $11 billion in restaked collateral, according to DefiLlama.
Another oracle service, eOracle, is already running on EigenLayer and secured by around $9 billion worth of Ether (ETH) as of October 22, based on EigenLayer’s data.
Major oracle providers like RedStone and Chainlink are gaining influence in traditional financial markets. On October 21, Chainlink announced plans to use AI and decentralized oracle tech to build an on-chain database for corporate actions.
EigenLayer is focusing on bringing in consumer Web3 apps following the October 1 launch of its native token, EIGEN, founder Sreeram Kannan shared with famous News website.
Initially, EigenLayer is targeting crypto-native sectors like DeFi and gaming before expanding beyond Web3. “We’re starting from the inside out, focusing on high-traffic apps like DeFi and gaming,” Kannan explained. “Once we reach critical mass, we’ll expand to broader consumer markets.”
To attract more restakers, EigenLayer introduced a programmatic incentives program on September 17. The program will reward restakers with EIGEN tokens, representing about 4% of the total supply.
#Eth News #Ethereum
