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Blockchain Oracle RedStone Raises $15M to Bring External Data into Networks
RedStone Oracles, a modular solution that connects blockchain networks to external data, announced on Tuesday of raising $15 million in seed funding led by Arrington Capital to expand its service.
The company’s Series A round saw participation from SevenX, IOSG Ventures, Spartan Capital, White Star Capital, Kraken Ventures, Amber Group, Protagonist, gumi Cryptos, Christian Angermayer’s Samara Asset Group, and HTX Ventures. This funding round follows the company’s $7 million seed funding nearly two years ago, bringing RedStone’s total funding to over $22 million.
In basic terms, an oracle provides trusted data feeds from external sources to a blockchain network so that its smart contracts can interact with them. For example, contracts in a blockchain might perform operations that require fresh data about financial markets, global trade, or insurance data. An oracle would connect to data sources outside the blockchain network and provide verifiable data that can be interacted with.
“Today’s announcement further underscores RedStone’s status as the undisputed leader in providing price feeds for yielding assets,” said CEO Jakub Wojciechowski. “This Series A round provides us with ample financial runway to expand our suite of services while bringing trusted real-world data to a range of blockchain-based protocols.”
RedStone provides data feeds for over 60 blockchain networks, including Ethereum, zkSync Era, Avalanche, Base, Polygon, Linea, Celo, Optimism, Arbitrum, Fantom, BNB Chain, and Blast. The company has also expanded to Bitcoin-based scaling networks such as Merlin Chain, BOB, B^2, and has stated that it intends to launch on high-performance chains such as Berachain and Monad.
The company differentiates itself from other oracles in the market by offering multiple models to access external data. The company has added a new model that provides on-demand data dynamically injected into on-call transactions to reduce the overall cost per transaction and provide the most up-to-date data possible.
Users can still use the current classic “Push” model, where data is retrieved via relay periodically and aggregated. Finally, the company introduced the “X” model that avoids front-running. This is where the transaction records the intent to interact with the protocol but only extracts on-chain price data at the last moment the transaction is executed.
This announcement comes as RedStone shifts its focus to the Ethereum restaking space, where users can “lock” cryptocurrency tokens they own on a blockchain to promote transaction integrity and earn rewards, which is called “staking.” These rewards can come in the form of blockchain tokens or derivative tokens, which can then be “staked” to earn more rewards on the primary blockchain or another blockchain, thus increasing earnings. In April, the company signed an agreement worth $500 million with Ether.fi, the largest restaking service on the Own layer protocol that would bring RedStone oracles to the network.
The company said the latest round of funding will be used to build a large-scale recruitment drive, particularly among its marketing and business development divisions, to fuel broad-based growth. RedStone also plans to launch an extractable value oracle product in a trial in the coming months and a native token later this year.
Image: Geralt/Pixabay
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