RedStone has grown exponentially in recent months, with 50+ integrations announced in the year 2024. Clients such as Pendle, Venus and Ethena stand out for their high TVL backed by RedStone oracles. This article evaluates how RedStone’s service impacted the mentioned protocols.
Pendle
Pendle is a decentralized protocol that allows users to tokenize, manage and trade yield-bearing assets.
Pendle Finance has been among RedStone’s partners since last year, however the official integration was announced in February this year, when the protocol acquired price feeds for the $weETH token, EtherFi’s native LRT.
Since then, Pendle has grown significantly, culminating in over $6 billion in TVL in June.
The protocol currently accounts for around $3.4 billion of which at least $250 million is secured by RedStone, according to DeFiLlama.
No official information was found on other integrations with Pendle besides $weETH, but it is possible to speculate that the partnership extends to other assets added by RedStone to the Arbitrum network, such as ezETH, rsETH and USDe.
According to Pendle CEO, TN Lee:
“The RedStone team is highly competent, with a strong work ethic and creative problem solving skills. They excel at creating custom Oracles tailored for unique use cases including for the Restaking segment. Plus, they’re quick to respond to our requests, which has been a big help in efficiently scaling Pendle to Arbitrum and other major networks.”
Therefore, the collaboration is just beginning and promises to bring new assets to Pendle’s crosschain ecosystem.
VENUS
Venus Protocol is a lending platform centered on BNB Chain. Currently with a liquidity of approximately $1.4 billion, the protocol now makes available more than 40 assets spread across 4 different networks.
An important feature of the protocol is the security of the price feed. After the incident that led to a loss of $11.2 million due to Chainlink price feed failure, the Venus team made resilience in oracle prices a priority.
The idea is to guarantee the security of price data, through the comparison between two oracles for each asset, and may even require a third, if the comparison criteria are not met. That’s where RedStone comes in…
“Only with the support of RedStone was Venus able to pioneer the resilient Oracle, which adds an extra layer of security to harden DeFi markets.”
Said Brad Harrison, CEO of Venus.
RedStone has been working since July last year to provide redundancy and resilience to the Venus platform. According to the platform’s governance tab, there were 4 implementations involving RedStone solutions:
- (Nov, 2023) — RedStone as the PIVOT oracle of the TRX and TRX_OLD tokens
- (May, 2024) — RedStone as the MAIN oracle for BTC and BNB on BNB Chain
- (May, 2024) — RedStone oracles on Arbitrum one for the XVS market
- (Jun, 2024) — New rsETH market in the Liquid Staked ETH pool, using RedStone price feeds
Responsible for the price feed of more than 5 assets on the platform, RedStone is estimated to provide the data for tokens valued at more than $1.1 billion, almost entirely represented by BNB and BTCB.
In an official article, Jaime, IT Manager at Venus, wrote:
“It is the next step, as RedStone is the main Oracle for XVS price feed there (native Venus token) and will be adopted for other assets like weETH from Ether.fi, ezETH from Renzo or sUSDe from Ethena.”
Indicating the team’s satisfaction with RedStone’s services, in addition to pointing out many integrations yet to come.
Ethena
Ethena is a protocol for issuing the synthetic dollar $USDe on the Ethereum network, whose value is guaranteed in cryptoassets positioned on several exchanges.
Given the importance of maintaining the stability of the $USDe price, Ethena uses a strategy called Delta hedging, which basically consists of neutralizing exposure to the risk of price fluctuations through positions in derivatives.
Facing this challenge, RedStone established a partnership with the protocol, integrating the $USDe price feed in March this year, when Ethena had a TVL of $770M.
According to Seraphim Czecker, Head of Growth in Ethena, this collaboration goes back even further:
“They’ve helped us go to other chains when we were just a measly $200 million protocol.”
Currently, the protocol’s TVL exceeds $3.4 billion and RedStone has a great responsibility for its security:
TL;DR
Based on the data obtained regarding the integrations between RedStone and the analyzed protocols, it is possible to project a general overview of the relationships and impacts of this cooperation.
The collaboration with Pendle enabled it to operate on the Arbitrum network, while the partnership with Venus improved the protocol’s resilience through redundant oracles. With Ethena, RedStone ensures the stability of the USDe synthetic dollar through accurate and robust price feeds.
Conclusion
RedStone has stood out in the DeFi ecosystem for its strategic integrations with protocols such as Pendle, Venus and Ethena. These partnerships have provided security, resilience and innovation in the provision of price data across several categories of decentralized finance.
Important Links
Website: https://redstone.finance/
Twitter: https://twitter.com/redstone_defi
Discord: redstone.finance/discord
Zealy: https://zealy.io/c/redstoneoracles/questboard
