RedStone, a Tallin, Estonia-based decentralized finance oracle platform, raised $525K in funding.
The round was led by Maven 11 Capital, with participation from Arweave, Collider Ventures, KR1, 1kx and Bering Waters Ventures.
The company intends to use the funds to continue to expand the partnerships with data providers and protocols that it supports and also to work towards the realization of its long term product roadmap which includes offerings such as cross-chain data bridges.
Led by CEO and founder Jakub Wojciechowski, RedStone provides a 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. 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 lower than Ethereum, enabling it to provide a low-cost service to its customers based on a sustainable long term business model.
FinSMEs
13/07/2021