We're excited to announce our partnership with RedStone, an Oracle that delivers frequently updated, reliable, and diverse data feeds for your dApp and smart contracts on multiple L1s & L2s!
What does RedStone do?
Well, to best explain what they do, let's discuss what problem they solve. The most notable problem with existing Oracle solutions is that pushing data on-chain is expensive - regardless of whether that data is used or not.
Persisting data directly on-chain has become the standard for Oracles because it enables all relevant data to be available in the context of a single transaction. But, there's a costly catch. The tradeoff here is that, at a 500 gwei gas price (typical for a busy day on Ethereum), a single one of these transactions might cost ~$100, which – as you might imagine – can quickly compound over time, and as you factor in additional data sources. This fundamental problem underscores additional issues with existing Oracle architecture, for example:
- Obsolete and monolithic architecture limits scalability (it's hard to list new assets or reduce latency)
- Protocols cannot fully decide on trusted sources and data update conditions
- End-users are fully dependent on relayers and could be cut off from the service
This is why RedStone was founded. RedStone's goal is to address this problem by offering a flexible and affordable Oracle solution through a radically different design catered for modern DeFi protocols. Notably, RedStone leverages Arweave for blockchain data storage in order to minimize costs. For reference, as of December 2021, storing 1GB on Arweave costed $35 compared to an overwhelming $1.7M on Ethereum.
From Arweave, a network of nodes and partners (such as Streamr) makes the data available to DeFi projects in the form of a decentralized public cache, doing so in a much more affordable manner than traditional solutions.
Caldera and RedStone
Through this partnership, RedStone's precise price feeds will be available to all Caldera chains to provide accurate, real-time price data for DeFi protocols.
We're thrilled to see this integration power our developer community with reliable, up-to-date, affordable price data, which we expect to help cultivate the growing DeFi ecosystem building with Caldera.