Interpreting Binance Launchpool Project RedStone: The Dark Horse of the Oracle Track Combining Utility and Innovation

Original Author: Poopman, Crypto Researcher

Original Translation: CryptoLeo, Odaily Planet Daily

Editor's Note: Today (February 25), Binance Launchpool announced the launch of the 64th project, RedStone (RED), which is a multi-chain oracle across EVM and non-EVM chains. Its tokenomics have also been revealed: Launchpool holds 4% of the total token supply, with the initial circulating supply accounting for 28%. This article was first released on February 20, 2025, providing a detailed comparison of RedStone with other projects in the same field, and estimating the token price. The full article reprinted by BlockBeats is as follows:

While the past few months in the crypto market have been dominated by Meme, Meme, and Meme, compared to the end of 2024, the hype around Memes has taken a very "twisted" turn, from Trump issuing coins to the recent "Libra scandal," the meme sentiment in the market has also declined, as shown in the chart below:

From a data perspective, since the launch of the LIBRA token, pump.fun's daily trading volume (including buying and trading newly issued tokens) has decreased by 33.7% from $184 million to $122 million. Besides trading volume, pump.fun has seen stagnation in other aspects. On Tuesday, the platform only registered 59,000 new wallets, marking a low point since November 17, 2024. Compared to the inauguration day of President Trump last month, the platform had about 110,000 active wallets. Compared to the current "twisted Meme" phase, we really miss the AI Agent Meme period from a few months ago, but PvP is not the end of blockchain; practicality and innovation are the everlasting topics in the industry.

One of the projects that I personally have high hopes for in terms of practicality and innovation integration is the oracle project RedStone. The project completed a $15 million Series A financing in July 2024, and released its tokenomics a week ago. DeFi KOL Poopman wrote about RedStone yesterday, analyzing RedStone's advantages and potential from several aspects such as its modularity advantages, market share, and tokenomics. The translation by Odaily Planet Daily is as follows:

TL;DR

-RedStone's modular architecture, scalable AVS, robust security, and ultra-low latency make it one of the most trusted and fastest oracles in the ecosystem.

-By 2024, with a $3.8 billion TVS and over 100 partners, RedStone has become the second-largest oracle provider in the space.

-During the $20 billion settlement and Renzo (ezETH) decoupling in 2024, RedStone exhibited faster price updates, low latency, high stability, and accuracy compared to other oracles.

-Its token RED is a utility token with staking rewards derived from data and price feed services. To enhance capital efficiency, RED can be wrapped as LRT deployed in various DeFi protocols for additional yield.

-Based on Pyth's $20 billion FDV, the estimated USD trading price for RED is around $2. The tokenomics are more focused on community growth, with 70% of the tokens locked up in the initial 12 months.

The current market cycle has been detached from fundamentals for some time now, and it's widely acknowledged that this is unhealthy for the industry's long-term development. Many tokens we know today are merely bubbles or memes, while innovative protocols with real demand and mass adoption potential remain largely overlooked.

Recently, RedStone Oracle announced their RED token TGE. Its tokenomics aim to provide more value to users or token holders.

In this article, the author will analyze RedStone's strengths and potential from 5 perspectives:

-RedStone's Features

-RedStone Market Adoption

-Comparison with Other Oracles

-RED Tokenomics

-RED Potential Valuation

Why is RedStone Better?

As we all know, an oracle is one of the most crucial components of blockchain. Without an oracle, blockchain is just a closed ecosystem incapable of accessing data from external sources. In today's market, every chain and dApp requires an economically efficient, secure, and flexible oracle.

And I believe RedStone has successfully filled that gap.

In recent years, RedStone has integrated and provided price feeds for hundreds of Tier 1 protocols from day one. This includes USDe, Pendle, Morph Blue, Berachain, EtherFi, and Lombard BTC. But what makes RedStone a favorite among many projects?

The reason is simple: security and modularity.

Security Under AVS

Unlike other oracles, RedStone is able to achieve more efficient gas spending and scalability by verifying the accuracy and validity of price oracle data using the EigenLayer AVS framework.

Odaily Note: AVS stands for Actively Validated Service, which is the most important concept in the Eigenlayer ecosystem. AVS is essentially a protocol, service, or system that requires staking to validate a "task." The AVS service itself undertakes the work of getting price feeds and reporting prices, and the AVS corresponds to its service management contract — the Service Manager. This contract communicates with Eigenlayer contracts and holds the state of the service functionalities, such as the operator running the service and the deposit required to secure the service.

The traditional oracle price push model works by collecting data from various sources and validating it through a Data Definition Language (DDL) and data consumption module. The on-chain validation process is quite expensive due to the significant gas fees involved. With RedStone's AVS, RedStone can offer highly optimized validation gas costs by processing the data off-chain.

The process is as follows: AVS operators fetch market prices and TWAP rates through a data source module, validate their accuracy, and then provide the validation results back on-chain.

Since most of the computation is done off-chain while maintaining trust and validation through AVS, RedStone offers a more cost-effective oracle solution compared to other solutions in the field.

Modularity

In addition to scalability, modularity is one of RedStone's key advantages. The platform's modules support both pull and push modes. To offer greater flexibility to projects, they can choose between managed or raw oracle data sources based on their specific needs. Projects can opt for carefully filtered and validated price feeds or customizable raw data streams to safeguard their assets.

Odaily Note: The pull model and push model are as shown in the figure below:

Due to its modular architecture, RedStone infra allows for seamless swapping of components from different systems without compromising system performance or reliability. The plug-and-play nature of its modules has made RedStone one of the most versatile oracle solutions in today's DeFi innovation and emerging chain systems.

Market Metrics

Customer Growth

RedStone's modular, plug-and-play architecture has driven user growth for the project, making it one of the fastest-growing oracle solutions in the blockchain space.

Throughout 2024, RedStone significantly expanded its footprint, onboarded over 100 new clients, and deployed on over 30 chains. With over $6.8 billion TVL, RedStone has become the second-largest multi-chain oracle provider in the industry, while Chainlink remains primarily focused on the ETH ecosystem.

The platform's reputation for reliability continues to attract mainstream DeFi participants. Notable partnerships include securing $3 billion TVL for Spark (Maker's lending protocol) and providing price feeds for DeFi leaders such as Pendle, Ethena, as well as various BTC collateral, yield stablecoins, LST, and LRT. The client roster reflects the industry's confidence in RedStone's reliable and customizable oracle solution.

Price Feed Time (Low Latency)

RedStone stands as one of the fastest and most reliable oracles in the field while maintaining decentralization, considered a trilemma. In terms of speed, RedStone's update speed surpasses most centralized oracles (only slightly slower than Binance). RedStone manages to compete with CEX in speed while staying decentralized, which is impressive.

Stability

RedStone has also shown stability in market turbulence, maintaining consistent and accurate price feeds during critical moments. During the $2 billion liquidation event in February 2024, RedStone successfully delivered 119,000 updates within 24 hours, with updates for the ETH/USDC price exceeding Chainlink by 30 points, providing more accurate price updates.

Indeed, during the Renzo (ezETH) decoupling in April 2024, RedStone outpaced Chainlink in keeping up with price changes. RedStone issued approximately 40 price updates in just 3 blocks, while Chainlink only pushed about 20 updates in the same timeframe. This demonstrates that RedStone is actually faster than the market-leading oracle provider. For more details, refer to the Chaos Labs report.

Comparative Advantage: Every oracle project has its strengths, but RedStone incorporates various features into one.

RedStone vs. Other Oracle Differential Comparison

Here is a brief overview of mainstream oracle projects in the current market:

Chainlink: Mainly focused on EVM, OG DeFi, primarily using a push model, providing reliable data through bridging using CCIP and expensive integration setups, supporting only a few blockchains;

Pyth: Mainly targeting non-EVM, Perps market, primarily using a pull model, utilizing Wormhole as a cross-chain relay, focusing on data feed quality;

RedStone: Any chain, any market, providing both push model and pull model, using eigenlayer AVS for cost-effective on-chain validation, featuring proof of reserves for wrapped BTC assets, etc.

The following image illustrates the differential comparison of the three major oracle providers in the market:

Upcoming TGE, RED Tokenomics

As RedStone expands to thousands of on-chain protocols, the RED token will play a critical role in decentralized oracles and deriving value from all integrated projects. RedStone's data providers (operators) have full flexibility; they can set any collateral, charge any fees (in any token), or establish any requirements they wish.

RED will serve as a utility token, and holders can stake and delegate it to data providers to receive a certain share of fees and rewards.

In addition, RED will also allow for re-staking versions, enabling its LRT to be used in any DeFi protocol to unlock additional economic value (similar to stETH).

Official data shows that the total token supply of RED is 1 billion. Of this, the initial circulation accounts for 30%. RED will be issued as an ERC-20 token but can later be bridged to Solana, Base, and all other supported networks through the Wormhole native transfer standard.

RED's design is community-centric: a significant portion of the token supply (48.3%) will be allocated to a community growth plan, including airdrops, future donation plans, and incentive measures, with 20% allocated to core contributors;

To ensure the long-term sustainability of RED, 70% of RED tokens will be fully locked up for 12 months after TGE and gradually unlocked over the following 36 months.

As the RedStone user base grows, operators will receive more fees, increasing the earnings of RED token holders. Higher yields will lead to a higher token staking rate, ultimately forming a positive feedback loop.

RED Token Valuation

Leading oracle projects in the market have FDVs in the tens of billions of dollars. As a leading oracle protocol, comparing RedStone to Chainlink and Pyth can provide a better estimate of the RED token price:

In the case of a total token supply of 1 billion, an initial price of $1 would put RedStone's FDV at $1 billion, but considering the current market positioning of the project, $1 seems somewhat conservative.

A better valuation estimation is to compare it with Pyth's $20 billion FDV, considering the 30% initial circulating supply, resulting in a price of $2 per token, which is also my expected RED token price.

If the market conditions improve, RED may reach Chainlink's FDV, and the token price could rise to $20 per token.

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