Research Summary
The report introduces RedStone Oracles and their innovative Oracle-on-Demand model, which aims to enhance the delivery of data to blockchain networks, dApps, and users. The model offers flexibility in terms of products and diverse data types supported, and it reduces the waste of updates by delivering transaction data only when needed.
Key Takeaways
Oracle-on-Demand Model
- Efficient Data Delivery: RedStone’s Oracle-on-Demand model updates data as users transact on the protocols, not at regular intervals. This approach reduces the waste of updates and delivers transaction data only when needed, improving cost efficiency and flexibility.
- Modular Design: The Oracle-on-Demand model is a modular design that first puts the data into an off-chain Data Availability Layer and then fetches it on-chain, allowing for more granular data provision.
Customised Data Consumption Solutions
- Three Dedicated Models: RedStone offers three dedicated models of data consumption: RedStone Core (Pull) – on-demand oracle, RedStone Classic (Push), and RedStone X (Zero-latency). These models reflect the need for a more tailored delivery of oracle data.
- Front-Running Protection: RedStone X, developed in collaboration with GMX, features a front-running protection mechanism for protocols requiring an advanced design.
Tokenomics and Incentives
- Accountability of Data Providers: RedStone’s model ensures the correct functioning of the network by requiring every data provider to publish the scope, source, and frequency of updates. They must also lock a certain number of tokens for a set period of time.
- Future Token Incentives: RedStone envisions its future token to incentivize participants to produce, publish, and validate data in a continuous and diligent way.
Pricing Models and Data Sources
- Flexible Pricing: RedStone offers two pricing models: a monthly fee and a revenue-share model. Both result in better cost efficiency as users only pay for the data they need.
- Diverse Data Sources: RedStone’s price feeds come from multiple sources such as off-chain DEX’ed, on-chain DEX’es, and aggregators. Currently, more than 50 sources are integrated.
Actionable Insights
- Consider the Efficiency of Oracle-on-Demand: Businesses and developers working with blockchain networks and dApps should consider the efficiency of RedStone’s Oracle-on-Demand model, which delivers data only when needed, reducing waste and improving cost efficiency.
- Explore Customised Data Consumption Solutions: Depending on specific use cases, businesses may benefit from RedStone’s three dedicated models of data consumption, which offer tailored delivery of oracle data.
- Understand the Role of Tokenomics: Understanding the role of tokenomics in RedStone’s model can provide insights into how incentives can be structured to ensure the correct functioning of a network and encourage continuous data production, publication, and validation.
