RedStone Oracles Secures $500 Million Deal with Ether.Fi for EigenLayer Restaking Protocol
RedStone Oracles, a provider of data feeds for blockchains, has recently entered into a groundbreaking deal with Ether.Fi, the largest liquid restaking service on EigenLayer. This partnership, valued at $500 million, will help power RedStone’s oracle protocol and enhance its security measures.
EigenLayer, a new “restaking” protocol that allows networks to borrow Ethereum’s security, has already attracted over $12 billion in user deposits, with many coming from liquid restaking middlemen like Ether.Fi. These deposits will play a crucial role in EigenLayer’s “pooled security” system, which enables operators to delegate their stake to support specific AVSs.
Under the agreement, Ether.Fi will dedicate $500 million to secure RedStone’s data oracles, ensuring the smooth flow of information between blockchains and the outside world. This collaboration will involve over 20,000 node operators from Ether.Fi managing RedStone’s AVS and utilizing Ether.Fi’s liquid restaking token, eETH, to safeguard against potential network failures and attacks.
Liquid restaking services like Ether.Fi offer users additional rewards and tradeable tokens in exchange for their deposits, ultimately contributing to EigenLayer’s security system. This partnership follows a similar deal between Ether.Fi and Omni, another AVS network, earlier this year.
While EigenLayer has amassed over $15 billion in deposits, the version currently live on Ethereum’s mainnet is still in development. AVS networks like RedStone Oracles are in the process of registering with EigenLayer and are expected to deploy onto the service later this year, according to Eigen Labs.
Overall, the collaboration between RedStone Oracles and Ether.Fi highlights the growing importance of actively validated services in the blockchain ecosystem and the innovative solutions being developed to enhance security and efficiency in the industry.