RedStone has launched a data-validation service on EigenLayer, becoming the first large oracle provider to integrate the Ethereum restaking protocol, RedStone told Cointelegraph on Oct. 23.
The service is still in testnet, but RedStone aims to create a “scalable framework that dynamically adjusts cryptoeconomic security as DeFi [decentralized finance] grows,” RedStone said in a statement.
Redstone’s oracles run on upward of 50 blockchain networks and secure nearly $3.5 billion worth of cryptocurrency, according to its website.
Its launch on EigenLayer “showcases a mature oracle system enhancing its security with restaked guarantees,” Alan Curtis, chief operating officer of developer Eigen Labs, said in a statement.
Redstone operates on more than 50 chains. Source: Redstone
Related: EigenLayer eyes consumer adoption post EIGEN unlock, founder says
Decentralized oracles connect blockchain networks to external data sources, including financial market data.
Restaking involves taking a token that has already been staked — posted as collateral with a validator in exchange for rewards — and using it to secure other protocols simultaneously.
EigenLayer secures dozens of third-party protocols — dubbed actively validated services (AVSs) — with approximately $11 billion of restaked collateral, according to DefiLlama.
Another oracle service, eOracle, is already live on EigenLayer and secured by approximately $9 billion worth of Ether (ETH) as of Oct. 22, according to EigenLayer’s website.
Large oracle providers — such as RedStone and Chainlink — are playing an increasingly prominent role in traditional financial markets.
On Oct. 21, Chainlink tipped plans to create an onchain database of corporate actions using artificial intelligence and decentralized oracle technology.
EigenLayer TVL. Source: DefiLlama
EigenLayer is prioritizing onboarding consumer Web3 applications after the Oct. 1 unlock of its native token, EIGEN, founder Sreeram Kannan told Cointelegraph in an interview.
EigenLayer will initially target apps in crypto-native segments such as DeFi and gaming before expanding beyond Web3, Kannan said.
“We’re starting with the inside-out approach, focusing on high-throughput consumer apps like DeFi and gaming, but once we grow a little bigger and have critical mass, we’ll go outside and start targeting broader consumer markets,” Kannan said.
EigenLayer also plans to woo restakers with a programmatic incentives program, which the protocol announced on Sept. 17.
The program will reward restakers with EIGEN emissions comprising approximately 4% of the token’s total supply.
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