RedStone Launches 2.4ms Push Oracle on MegaETH for DeFi Efficiency

RedStone, a blockchain oracle provider, has introduced a push-based oracle on MegaETH to tackle latency issues that challenge the efficiency of onchain trading. The new oracle can push new prices onchain every 2.4 milliseconds. Initially debuting on MegaETH, an Ethereum layer-2 network, the product may be rolled out to additional chains in the future.

RedStone's oracle sources prices from centralized exchanges and delivers them directly to applications or smart contracts via nodes that operate natively on the MegaETH chain. This “co-location” strategy minimizes latency by eliminating delays typically caused by the physical distance between servers. In the future, RedStone also plans to include price feeds from decentralized exchanges.

Oracles compatible with the Ethereum Virtual Machine (EVM) are becoming more popular. There are currently 12 decentralized oracle networks operating on Ethereum. Oracles can make money through data usage fees, licenses, staking rewards and node incentives. The current market capitalization for oracle tokens sits at $10.2 billion.

Decentralized finance's total value locked onchain nears $88 billion as of April 8, after rising 116% in 2024. Ethereum remains the top blockchain for DeFi applications, with $47.8 billion locked in the network, followed by Solana with $6.1 billion in DeFi TVL. The rise of DeFi has intensified competition in the oracle market — an essential component for the functioning of decentralized applications. Price oracles feed real-time market data into smart contracts, acting as a bridge between blockchains and the real world.

Popular players in the oracle space include Chainlink and Pyth Network. In October 2024, Pyth flipped Chainlink in 30-day volume, reaching $36 billion in transactions. The protocol offers a pull-based model that provides data upon request, thus making it optimized for high-volume activities.

RedStone, a prominent player in the decentralized finance (DeFi) space, has made a significant stride with the launch of its new oracle service, Bolt, on the MegaETH testnet. This innovative "push" oracle is designed to deliver real-time price updates with an unprecedented speed of every 2.4 milliseconds. This development is a game-changer for DeFi applications, as it significantly reduces trading latency and enhances the efficiency of smart contracts that rely on up-to-date pricing information.

The deployment of Bolt on MegaETH, a Layer 2 blockchain solution, marks a pivotal moment in the evolution of Ethereum's scalability. MegaETH has already demonstrated its capability to handle 20,000 transactions per second (TPS) and aims to scale up to 100,000 TPS. This scalability is crucial for supporting the growing demands of DeFi protocols, which require fast and reliable data streams to function effectively.

Unlike traditional "pull" oracles, where smart contracts must actively request data, Bolt operates as a "push" oracle. This means it proactively and continuously delivers information to the blockchain, resulting in lower latency, greater precision, and more efficient execution for protocols such as lending platforms, trading engines, and derivatives. This innovation opens the door to new forms of real-time financial automation, which were previously unthinkable within the Ethereum ecosystem.

The integration of Bolt with major DeFi protocols like Aave, Compound, and Morpho is seamless, thanks to its plug-and-play design. This compatibility makes Bolt an ideal solution for an ecosystem that is increasingly demanding in terms of speed and reliability. MegaETH's monolithic scalability solution, which operates with parallel sequencers and alternative data availability solutions, further enhances its appeal as a robust platform for DeFi applications.

The synergy between RedStone and MegaETH is a testament to the evolving narrative of scalability and performance within the Ethereum environment. As stated by the RedStone team, "MegaETH is the only network fast and flexible enough to support an oracle like Bolt." This partnership underscores the importance of innovation in addressing the challenges of trading latency and data precision in the DeFi space.

RedStone's institutional backing further solidifies its position as a key player in the DeFi landscape. Major firms have selected RedStone as their data provider for ongoing and future DeFi operations through the tokenization platform. Additionally, RedStone has raised 15 million dollars in a Series A round, with participation from strategic investors. This financial support highlights the confidence that institutional players have in RedStone's technology and its potential to redefine the future of decentralized applications.

Ask Aime: What impact will RedStone's new push-based oracle have on the Ethereum network's overall efficiency?