DeFi oracle provider RedStone has launched its AVS testnet on the popular Ethereum restaking protocol, EigenLayer.
This is the first instance of an oracle utilizing EigenLayer’s restaking technology to improve security.
RedStone – EigenLayer
According to the official press release shared with CryptoPotato, this integration represents a significant step for RedStone and the wider DeFi ecosystem, as EigenLayer’s restaking model will enable the oracle provider to protect its systems by adjusting the amount of collateral based on market conditions.
This is expected to add an extra defense against potential attacks.
RedStone will be able to ensure that its data feeds remain both secure and reliable by leveraging different types of collateral, such as ETH, liquid staking tokens (LSTs), stablecoins, and even BTC.
Commenting on the launch of AVS testnet on EigenLayer, Alan Curtis, COO of Eigen Labs the developer of the restaking protocol, said
“Oracles are essential to the DeFi world, enabling reliable data connections. RedStone’s use of our restaking capabilities is an example of a mature oracle system taking its security to the next level. We’re thrilled to welcome them into the EigenLayer ecosystem.”
EigenLayer: So far in 2024
The latest development comes less than a month after EigenLayer’s native cryptocurrency, EIGEN, made its highly anticipated debut on major cryptocurrency exchanges, including Binance, Bybit, OKX, Kraken, and Uniswap v3.
With a fully diluted market value (FDV) of $7 billion, EIGEN quickly gained attention following its release. The launch, regarded as one of the most talked-about token events of 2024, was officially announced by the Eigen Foundation.
EigenLayer is one of the top players in the restaking ecosystem, with a total value locked (TVL) of $10.77 billion as per data compiled by DeFiLlama.
Owing to its popularity, the restaking platform’s official X account was hacked last week resulting in a number of fraudulent posts that included a fake airdrop campaign targeting users eligible for a previous distribution. Eigen Labs acknowledged the breach and advised users to steer clear of suspicious links, urging them to verify all interactions through the official website, “eigenlayer.xyz.”