As Stellar builds out its DeFi infrastructure and tests out lending and tokenised assets, RedStone, an Oracle vendor, puts price feeds on the network. The Stellar network is where RedStone, an Oracle provider, has set up its price feed system. RedStone, an Oracle provider, introduces a new layer of data for decentralised finance (DeFi) apps on a blockchain primarily used for payments and stablecoin transfers.
The deployment makes it possible to get price feeds for major stablecoins and cryptocurrencies on the Stellar mainnet. Bitcoin (BTC $72,699), Ether (ETH $2,117), USD Coin (USDC $1), and PayPal USD (PYUSD $1) are some of these. The launch also includes pricing information for the Franklin Templeton BENJI tokenised money market fund.
Making Stellar’s Oracle layer stronger
RedStone stated that the feeds aim to support Stellar-based financial products, such as lending markets, decentralised exchanges (DEXs), and tokenised real-world assets (RWA) platforms.
The introduction adds a new infrastructure supplier to Stellar’s growing DeFi stack. Developers use this stack to test lending, tokenised assets, and financial services on the blockchain.
RedStone said that the price feeds employ a mechanism that updates based on how far off the data is and checks for freshness to make sure the data is proper for financial apps.
Stellar has long shown that it is a strong blockchain for real-world financial activity, especially for payments and stablecoins, said Marcin Kazmierczak, co-founder of RedStone.
He noted that the network needed “what has been missing” to employ more complex financial apps: an enterprise-level oracle architecture.
RedStone works in the oracle industry, and Chainlink is the main company there. DeFiLlama says that Chainlink is worth about 64% of the market, followed by Chronicle with 11%.
Internal protocol oracles make up around 6% of the total, whereas Pyth and RedStone make up about 5.8% and 5.5%, respectively.
Recent exploit shows weaknesses in Oracle
This introduction comes a few weeks after a DeFi hack on Stellar exposed the dangers of using price feeds and collateral valuation in lending protocols.
Hackers took roughly $10 million from a loan pool run by YieldBlox DAO that used the Blend protocol on February 21. They achieved this by manipulating the price of the USTRY token, which served as collateral.
BlockSec, a company that specialises on blockchain security, did a security check and found that the loan protocol used a pricing system that was connected to the shallow USTRY/USDC market on Stellar’s decentralised exchange. The attacker borrowed more than the token’s worth because the collateral’s value increased.
The February exploit could only happen because an oracle was getting a price from a market that traded less than one dollar an hour, the spokesperson said.
RedStone said that instead of price feeds, it employs deviation-based updates, which are normally between 0.5% and 1% for stablecoins, and minimum daily refreshes to keep the data current.