DeFi Platform RedStone Raises Nearly $7M to Improve Connectivity Between Blockchains, Real World Data

DeFi oracle platform RedStone has raised nearly $7 million to develop a faster, cost-efficient cross-chain oracle for decentralized finance (DeFi) protocols, according to a Monday press release.

Lemniscap led the seed funding round, with support from Coinbase Ventures, Blockchain Capital, Distributed Global, Lattice, Arweave, Bering Waters, Maven11 and SevenX Ventures. RedStone, which currently delivers data feeds to more than 30 chains, including Ethereum, Avalanche and Polygon, will use the funds to expedite the rollout of its latest product suite with the aim to improve connectivity between blockchains and real-world data.

Lemniscap founder Roderik van der Graaf says it’s important that essential DeFi infrastructure, like the firm’s cross-chain oracle, continues to evolve to support the sprawling DeFi sector.

“While the DeFi space continues to provide fertile ground for innovation, the foundational infrastructure has remained static over time, and is not fit for purpose in today’s rapidly scaling, blockchain-agnostic environment,” said van der Graaf in the press release.

Oracles are essential to the DeFi sector because they enable smart contracts to access real-time data, like digital asset prices, eliminating the need for a central intermediary.

Read More: What is an oracle?

Redstone Oracle aims to offer quick and inexpensive connectivity by leveraging a proprietary method for putting data on blockchains, called the EVM-connector. This method quickly and economically aggregates data from external sources like the foreign exchange market and price feeds for long-tail tokens, NFTs and commodities as the data automatically attaches itself to a transaction and erases itself. Currently, RedStone Oracle passes data packages into transaction call data by accessing over 1,000 data feeds, which are updated every 10 seconds.

To further its mission to increase interoperability between blockchains and external data sources, the company is also developing a more efficient framework for smart contracts.

RedStone founder Jakub Wojciechowski says RedStone’s framework for smart contracts will be capable of processing more information, allowing the company’s developers to improve on-chain-off-chain connectivity.

“We want to create a smart contract framework that will allow everyone to process large volumes of data,” Wojciechowski told CoinDesk. “That’s something which is not possible in other spaces.”

Read More: Making Sense of Blockchain Smart Contracts

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