- The partnership between Ether.Fi and RedStone Oracles represents a substantial investment of $500 million to secure RedStone’s data oracles, underscoring the importance of enhanced security and data integrity in the blockchain ecosystem.
- This collaboration highlights the critical role of secure data transmission between blockchains and the outside world, a cornerstone for the success of decentralized finance and other blockchain applications.
Ether.Fi, the leading liquid restaking service on EigenLayer, has reached a $500 million deal with RedStone Oracles, a provider of blockchain data feeds. This partnership aims to enhance RedStone’s data oracles, which facilitate the flow of information between blockchains and the real world.
EigenLayer, a novel “restaking” protocol that allows emerging networks to leverage Ethereum’s security, rolled out a limited version of its service on Ethereum’s mainnet this week. The protocol currently boasts over $12 billion in user deposits, with a significant portion coming from liquid restaking intermediaries such as Ether.Fi. These entities simplify the deposit process and offer additional rewards to end users.
The collaboration between RedStone Oracles and Ether.Fi focuses on bolstering RedStone’s actively validated services (AVSs) within EigenLayer’s pooled security system. Ether.Fi will allocate $500 million to secure RedStone’s data oracles, ensuring the network’s reliability and resistance to crypto-economic attacks.
The partnership involves a team of over 20,000 node operators from Ether.Fi managing RedStone’s AVS using Ether.Fi’s native liquid restaking token (eETH). The joint statement from the companies explains that the restaked Ether will provide a safety net against network failures and attacks on RedStone’s node providers.
Ether.Fi’s liquid restaking services channel user deposits into EigenLayer and offer users additional rewards and tradeable “liquid restaking tokens” that represent their investment. With $3.8 billion locked into EigenLayer, Ether.Fi plays a significant role in supporting the protocol’s pooled security system.
In exchange for deposits, Ether.Fi provides users with a derivative token, eETH, which accrues interest and can be traded in decentralized finance (DeFi).
RedStone’s partnership with Ether.Fi is not the first of its kind. In March, Ether.Fi pledged $600 million worth of its stake to Omni, an AVS network designed to enable communication between layer-2 rollups.
EigenLayer has accumulated over $15 billion in total deposits; however, the version deployed on Ethereum’s mainnet is yet to offer all its core features. The only AVS currently permitted to deploy onto the network is EigenDA, a data availability service developed by Eigen Labs, the team behind EigenLayer.
While AVS networks like RedStone Oracles can register with EigenLayer, they will not be allowed to deploy onto the service until later this year, as per estimates from Eigen Labs.
Looking Ahead: A New Era of Blockchain Security and Innovation
The $500 million partnership between Ether.Fi and RedStone Oracles marks a significant step forward in the evolution of blockchain security and data availability. As the collaboration strengthens RedStone’s data oracles and boosts the resilience of blockchain networks, it sets the stage for further advancements in decentralized finance and blockchain technology. With the anticipated full deployment of EigenLayer’s services later this year, the industry can expect even more innovative projects and partnerships that push the boundaries of what’s possible in blockchain and crypto.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
