RedStone Integrates Data-Validation Service With EigenLayer, Marking a First for Major Oracle Providers

The service, currently in its testnet phase, aims to establish a scalable framework that dynamically adjusts cryptoeconomic security as decentralized finance (DeFi) continues to grow

Oracle provider RedStone has introduced a data-validation service on EigenLayer, marking the first integration of a major oracle with the Ethereum restaking protocol.

RedStone’s service, currently in its testnet phase, aims to create a scalable framework that adjusts cryptoeconomic security dynamically as decentralized finance (DeFi) expands further, the firm announced.

Oracles play a key role in connecting blockchain networks to external data sources, such as financial market data, while restaking allows a token that has already been staked to be used as collateral with a validator to secure additional protocols simultaneously.

RedStone’s oracles operate across more than 50 blockchain networks, securing nearly $3.5 billion in cryptocurrency, according to Alan Curtis, chief operating officer of EigenLayer developer Eigen Labs. The integration highlights a mature oracle system enhancing its security through restaked guarantees, he added.

EigenLayer secures several third-party protocols, known as actively validated services (AVSs), with approximately $11 billion of restaked collateral, data from DefiLlama shows. Another oracle service, eOracle, is already live on EigenLayer and was secured by around $9 billion in Ether (ETH) as of Oct. 22, according to EigenLayer’s website.

Major oracle providers like RedStone and Chainlink are becoming increasingly relevant in traditional financial markets. On Oct. 21, Chainlink announced plans to create an on-chain database of corporate actions using artificial intelligence and decentralized oracle technology.

Following the Oct. 1 unlock of its native token, EIGEN, EigenLayer is prioritizing onboarding consumer Web3 applications, founder Sreeram Kannan told Cointelegraph. Initially, the focus will be on crypto-native segments such as DeFi and gaming, with plans to expand beyond Web3 once a critical mass is achieved.

“We are starting with high-throughput consumer applications like DeFi and gaming and then moving to broader consumer markets in an inside-out approach,” Kannan explained.

Moreover, EigenLayer is looking to onboard restakers with a programmatic incentives program announced on Sept. 17. The program will see restakers rewarded with EIGEN emissions, comprising roughly 4% of the token’s total supply.