At Maven 11 we are excited to share that we participated in the first ever round of funding for RedStone. The funding from this round will be used to further support Redstone with their mission of becoming the go-to oracle platform for decentralized finance (DeFi). Oracles are a critical piece of infrastructure that provides access to external data, like cryptocurrency prices, without needing a trusted central party.
"DeFi has experienced a colossal expansion, yet the oracle technology is lagging behind with the infrastructure created a few years ago. Redtone is looking to fill that gap by offering fast, cost-efficient and convenient tools for providing data to blockchain protocols. I'm privileged to be surrounded by a group of very experienced investors who can help Redstone to reach its full potential,” said Jakub Wojciechowski, CEO and founder of RedStone.
Many protocols right now have implemented their oracle solution directly on the Ethereum chain, meaning they store the data retrieved there as well. However, due to the relatively high transaction costs on Ethereum, this can be a very costly endeavor for the oracle provider and requires heavy subsidization. If this problem does not get resolved, these types of oracles will remain an unsustainable business model.
“Oracles are an immensely important part of Blockchain, Web 3.0 and Defi infrastructure as blockchains don’t natively retrieve off-chain data. Redstone improves upon existing solutions by leveraging the next generation of data storages and combining this technology with oracles. This greatly reduces costs for oracle providers and allows them to have a sustainable business model for the years to come.” Balder Bomans, Managing Partner Maven 11 Capital
RedStone aims to solve this problem by making use of Arweave which is a blockchain-based storage solution. Due to the scalability and lowered transaction cost, the requirements to become an oracle provider drastically decrease. Furthermore, Arweave’s storage solution is a permanent one, providing full transparency and a fully recoverable audit trail of information.
We look forward to working with the experienced RedStone team and continue building the next generation oracle solution that will help the DeFi ecosystem to expand by providing key infrastructure to it.