Highlights:
- RedStone’s Bitcoin staking oracles enable BTC holders to use liquid-staking tokens in DeFi lending.
- Oracles are crucial in verifying staking data and expanding BTC LST use beyond liquidity provision on DEXs.
- RedStone’s launch of BTC staking oracles is expected to boost DeFi participation and drive ecosystem growth.
RedStone Oracles, a provider of data for smart contracts, has announced the launch of its Bitcoin-staking oracles. Users can now use LSTs in lending and other financial services. This is a significant advancement for decentralized finance, where LSTs can now be used in lending and other financial services.
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RedStone’s co-founder and COO, Marcin Kaźmierczak, highlighted the importance of this launch. Developers and platforms can now integrate Bitcoin LSTs into DeFi for purposes beyond providing liquidity on decentralized exchanges.
📣 Introducing Bitcoin Staking Oracles 📣
RedStone launches the first market-ready Bitcoin Staking Oracles, enhancing Babylon-powered solutions. Delivering the first implementation for @Lombard_Finance.
The LBTC/BTC price feed marks the debut of Bitcoin Staking Oracles. pic.twitter.com/SLYX5ChKHo
— RedStone Oracles ♦️ (@redstone_defi) October 8, 2024
What Staking Oracles Are and Why They Matter
Blockchain oracles are intermediaries that link real-world data with blockchain platforms. They provide validation of data acquired from the real world and then feed the data into the blockchain environment. Organizations use oracles to ensure the reliability and accuracy of data, especially for applications in lending and staking.
Oracles play a crucial role in DeFi by providing important information to lending platforms. They allow users to borrow funds against their crypto assets. In staking, they play a crucial role as crypto assets are stored in smart contracts to generate rewards. Oracles are essential for verifying critical information like staking rewards and events that may impact the performance of Lido Staked Ether as staking gains popularity.
Before RedStone introduced Bitcoin staking oracles, Bitcoin LSTs were only able to provide liquidity on DEXs without needing Oracle services. Bitcoin staking comes at a crucial time as liquid restaking platforms face major cyber attacks. The introduced staking oracles will enable the utilization of Bitcoin LSTs, specifically LBTC, on various DeFi platforms for lending and other functions.
Expanding Bitcoin LST Use Cases
The introduction of Bitcoin staking oracles means users can now utilize Bitcoin LSTs in various DeFi lending platforms, including Morpho and Compound. Additionally, these oracles, combined with LBTC, can be used on Gearbox Protocol.
This expansion into DeFi is a major step forward for Bitcoin holders. Now, they can not only earn rewards from staking but also take advantage of lending and other DeFi services. This move will drive immediate growth in the Bitcoin LST DeFi ecosystem.
RedStone’s Growth and Future Plans
The launch of Bitcoin staking oracles comes after RedStone’s successful Series A funding round, where the company raised $15 million. Led by Arrington Capital, this funding will support RedStone’s continued expansion in the blockchain space.
RedStone is excited to announce a $15M Series A fundraising round, led by @Arrington_Cap to expand its Modular Oracle product ♦️🧵 pic.twitter.com/d8wNIJ0uPr
— RedStone Oracles ♦️ (@redstone_defi) July 2, 2024
RedStone is already a key player in providing high-frequency, modular data feeds for smart contracts. These data feeds are compatible with Ethereum Virtual Machine-based blockchains, including popular Layer 2 solutions like Arbitrum and Optimism.
The company has plans to extend its data services further, with integration on platforms such as Solv and pumpBTC. In the future, RedStone will also support other blockchain ecosystems like Base and BNB Chain.
Looking ahead, RedStone’s CEO, Jakub Wojciechowski, has expressed the company’s commitment to expanding its data services as Bitcoin staking grows. The integration of Bitcoin staking oracles will enable better data tracking and service provision across DeFi platforms. This will be critical as the demand for staking services continues to rise.
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