RedStone Raises $525K in First Round of Funding to Expand Its Market Leading Next-Generation Decentralized Oracle Platform
Round Led by Maven 11 Capital, With Participation From Arweave, Collider Ventures, Maven 11 Capital, KR1, 1kx and Bering Waters Ventures.
TALLINN, Estonia, July 13, 2021 (Newswire.com) - RedStone, the creator of a next-generation decentralized finance oracle platform has raised $525K in its pre-seed financing round. Led by Maven 11 Capital, major investors in the private-placement SAFT-style round included Arweave, Collider Ventures, KR1, 1kx, and Bering Waters Ventures.
The successful financing round is a new milestone on RedStone's journey to becoming the oracle platform of choice for users of decentralized finance (DeFi). Data oracles are a critical component of DeFi infrastructure that provide access to external data sources, such as coin pricing information, without the need for a central intermediary.
"DeFi has experienced a colossal expansion, yet the oracle technology is lagging behind with the infrastructure created a few years ago. RedStone is looking to fill that gap by offering fast, cost-efficient and convenient tools for providing data to blockchain protocols. I'm privileged to be surrounded by a group of very experienced investors who can help Redstone to reach its full potential," said Jakub Wojciechowski, CEO and founder of RedStone.
RedStone is a next-generation cross-chain data oracle technology that offers fast and cost-efficient access to data, a full historic audit trail and an insurance-backed decentralized dispute mechanism which provides users with recourse in the event that they receive inaccurate data. Today, RedStone supports 150 assets across three providers with oracle query interval times of up to ten seconds.
Some protocols store price data directly on transactional blockchains such as Ethereum. High gas fees associated with these types of public protocols represent a key challenge for many of today's oracles. Unable to pass these fees onto their users, oracles must instead subsidize their service by absorbing these costs, which is not a sustainable business model. In contrast, by leveraging Arweave, RedStone's storage costs are one million times lower than Ethereum, enabling it to provide a low-cost service to its customers based on a sustainable long term business model.
RedStone samples data sources and stores the information using Arweave's highly secure, low-cost decentralized storage infrastructure, providing a fully auditable historical audit trail of information.
"Arweave provides permanent, on-chain storage that reaches extreme scale. That is why we are so excited about RedStone's work - they are unlocking the ability for decentralized oracles to process enormous amounts of data," said Sam Williams, CEO of Arweave.
In the event that there is a dispute concerning the quality of data, the tamper proof historical record is consulted to confirm what data was originally supplied, and a decentralized governance mechanism then provides a ruling on the claim. The claimant then receives compensation from an insurance fund comprising the staked funds provided by RedStone's network participants.
The proceeds of the financing round, which was oversubscribed, will enable RedStone to continue to expand the partnerships with data providers and protocols that it supports. It will also enable Redstone to work towards the realization of its long term product roadmap which includes offerings such as cross-chain data bridges. In the future, owing to RedStone's unique flexible and cost-effective architecture, RedStone has the potential to address DeFi niches beyond simple price data such as providing information about trading volume, volatility and order-book structure.
ABOUT REDSTONE
RedStone is a next-generation cross-chain data oracle providing pricing data for financial protocols. It leverages the Arweave blockchain to create affordable storage with a permanent audit trail and provides an automatic dispute mechanism, backed with insurance through staking.
ABOUT ARWEAVE
The Arweave protocol enables a decentralized, permanent web upon which data is stored immutably and reliably. From data storage to app hosting, Arweave is rebuilding the social and technological infrastructure of the web, including the corporate structures behind the production of apps themselves.
This is made possible by Arweave's economic model based on an endowment rewarding those who store network data. Therefore, those who host their web apps on the Arweave network never have to worry about technical maintenance or ongoing hosting costs - once their code is deployed, it will persist forever. This allows developers to build applications that are owned and controlled by no person or company - just by their immutable code.
MEDIA CONTACTS
Jakub Wojciechowski
press@redstone.finance or jakub@redstone.finance
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Source: Redstone