DeFi Platform RedStone Raises Nearly $7M to Improve Connectivity Between Blockchains, Real-World Data

The company's new product suite aims to make interoperability between blockchains and external data sources faster and more affordable. 

AccessTimeIconAug 30, 2022 at 9:00 a.m. UTC

Elizabeth Napolitano is a news reporter at CoinDesk.

DeFi oracle platform RedStone has raised nearly $7 million to develop a faster, cost-efficient cross-chain oracle for decentralized finance protocols.

According to a Monday press release, Lemniscap led the seed funding round with support from Coinbase Ventures, Blockchain Capital, Distributed Global, Lattice, Arweave, Bering Waters, Maven11 and SevenX Ventures. RedStone, which currently delivers data feeds to more than 30 blockchains, including Ethereum, Avalanche and Polygon, will use the funds to expedite the rollout of its latest product suite with the aim of improving connectivity between blockchains and real-world data.

Lemniscap founder Roderik van der Graaf said in the release it’s important that essential DeFi infrastructure, like the firm’s cross-chain oracle, continues to evolve to support the sprawling DeFi sector.

“While the DeFi space continues to provide fertile ground for innovation, the foundational infrastructure has remained static over time, and is not fit for purpose in today’s rapidly scaling, blockchain-agnostic environment,” said van der Graaf.

Oracles are essential to the DeFi sector because they enable smart contracts to access real-time data, such as digital asset prices, eliminating the need for a central intermediary.

Redstone Oracle aims to offer quick and inexpensive connectivity by leveraging a proprietary method for putting data on blockchains, called the EVM connector. This method is intended to quickly and economically aggregate data from external sources like the foreign exchange market and price feeds for long-tail tokens, non-fungible tokens (NFT) and commodities as the data automatically attaches itself to a transaction and erases itself. Currently, RedStone Oracle passes data packages into transaction call data by accessing over 1,000 data feeds, which are updated every 10 seconds.

The company is also developing a more efficient framework for smart contracts to increase interoperability between blockchains and external data sources.

RedStone founder Jakub Wojciechowski said RedStone’s framework for smart contracts will be capable of processing more information, allowing the company's developers to improve on-chain-off-chain connectivity.

“We want to create a smart contract framework that will allow everyone to process large volumes of data,” Wojciechowski told CoinDesk. “That's something which is not possible in other spaces.”

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Elizabeth Napolitano is a news reporter at CoinDesk.

CoinDesk - Unknown

Elizabeth Napolitano is a news reporter at CoinDesk.