RedStone Deploys $RED Token on Ethereum
RedStone, a blockchain oracle service provider backed by Arrington Capital, on Thursday revealed the launch of its native token, $RED, on the Ethereum blockchain.
In a statement issued to CryptoNews, the firm clarified that $RED will decentralize and secure RedStone’s oracle infrastructure by enabling staking, enhancing economic security, and creating a sustainable oracle economy.
Enhancing DeFi Security
The introduction of the $RED token marks a significant step toward decentralizing our oracle infrastructure and further securing and making DeFi applications more stable,” said RedStone co-founder Marcin Kazimierczak.
“By staking through RedStone AVS on EigenLayer, we introduce incentives for correct data and expand the capabilities of what oracles can achieve,” Kazimierczak added.
Staking and Rewards System
The staking feature allows token holders and data providers to contribute to the security of the network. Token holders stake in RedStone AVS for network security, and data providers stake $RED to validate the accuracy of their price feeds.
Participants are rewarded for staking their funds in the form of payments by RedStone data consumers across different blockchain networks, including ETH, BTC, SOL, and USDC. It encourages active participation in the system.
For adoption enablement and community engagement, 10% of the total 1 billion $RED tokens go towards Community & Genesis distribution. This is by way of concentrated airdrops for early adopters, allies, and collaborators who helped the development of RedStone.
Establishing the RedStone Ecosystem
In October, RedStone introduced Bitcoin staking oracles to support DeFi protocols on networks like Ethereum, Avalanche, and Polygon. They enable users of Bitcoin to stake their tokens in DeFi based on real-time data for liquid staking.
RedStone closed a $15 million funding round led by Arrington Capital in July. The firm provides data feeds to blockchains and EVM-compatible layer 2 platforms.
With the introduction of $RED, RedStone aims to redefine oracle security and continue mainstreaming decentralized staking solutions in the broader DeFi landscape.
