Hello, Marcin here from RedStone. We’ve been an Oracle provider for Venus since July 2023. Currently, our price feeds are integrated by Venus on the BNB Chain and Ethereum (Covered by Venus Stars). The aim of this proposal is to help Venus gain further market share and enhance its resiliency.
BACKGROUND
RedStone has enabled the launch of Venus on the Ethereum mainnet by providing XVS / USD price feed, which is the obligatory piece of the deployment on a new chain. Our team covered the full cost of the price-discovery set-up and monthly maintenance, subsidizing $20,000+ cost to enable the successful launch of Venus on Ethereum and being a long-term partner.
Our team would like to enable Venus expansion on Arbiturm L2 by providing XVS / USD price feed there. Additionally, we would like to further boost Venus’ robustness by delivering needed price feeds to the proprietary ResilientOracle module created by the Venus Core Contributors.
ABOUT REDSTONE
RedStone is the quickest-growing Modular Oracle with clients including Venus, ListaDAO, Kinza, Pendle, Morpho, Ethena, Etherfi, Renzo, Puffer, Silo, Sommelier, Gearbox, Frax, Swell, Angle and 70+ other companies. Our Oracles are available on 50+ chains including Arbitrum, BNB Chain, Ethereum, Merlin Chain, BOB, Blast, TON, Mode and many more.
RedStone’s mission is to enable DeFi protocols and dApp’s builders to reach their full potential with versatile, gas-optimized and robust price feeds delivered cross-chain. Our team consists of seasoned engineers with an average of 15+ years of dev experience and a hard-working BD & Marketing team supporting partner protocols at every step: conferences, Twitter spaces, targeted intros, etc. Our technology has been acknowledged by the leading figures in the crypto space, we are proud to be backed by the most renowned Web3 Entrepreneurs such as Sandeep Nailwal (Polygon), Alex Gluchovski (zkSync), Emin Gün Sirer (Avalanche), Richard Ma (Quantstamp) and VCs like Lemniscap, Coinbase Ventures, Blockchain Capital, Maven11, Distributed Global, Lattice Fund and others.
Our tech-first approach allows us to be a leader in LRT & LST price feeds and provide Oracles for blue chip assets, LP and staked tokens and numerous trending tokens. We are the first oracle to create price feeds for weETH (Etherfi) and ezETH (Renzo), STONE (StakeStone) and numerous other assets that are being integrated into Venus.
As the only oracle RedStone provides in a cross-chain manner the two major oracle implementations:
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Push Oracle (RedStone Classic) - popularized by Chainlink, provides on-chain updates with specified deviation thresholds and heartbeat. The model used by Venus in v4.
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Pull Oracle (RedStone Core): allowing for gas efficiency, and low-latency of price feed updates, based on attaching signed data packages to transaction call-data. The model that allowed i.e. Gearbox to grow its TVL by 10x, reaching over $400M. We are keen to support the Venus Core Contributors in the implementation of this model into Venus v5 to expand its capabilities (described in detail in my previous Venus Proposal post in the integration details Step 2).
Implementing RedStone Core would give Venus many benefits. Low latency of Price Updates ensures the protocol has access to the latest possible collateral price and allows for higher LTV values and higher pool utilization leading to better capital efficiency as well as the increase of the available leverage. Besides, On-Demand Oracles bring even greater possibilities in terms of adding new assets and the ability to use the exact same feeds while expanding to other ecosystems/subchains.
PROPOSAL
RedStone is willing to create the XVS/USD price feed on Arbitrum, needed for Venus launch on this L2. We suggest the same configuration as the XVS feed on the Ethereum mainnet, so a 1% deviation threshold and 24-hour heartbeat. Additionally, we have prepared two feeds BNB/USD and BTC/USD on the BNB Chain according to the specs of Venus Core Contributors. We suggest implementing these two feeds as main into the ResilientOracle module alongside Chainlink or Binance Oracle as pivot and fallback, following Venus Core Contributors’ recommendations based on backtest analysis. Such configuration would allow the achievement of the full potential of this module and ensure Venus is protected further against mispricing events during high market volatility conditions.
BENEFITS TO VENUS
By accepting the proposal Venus is going to benefit in a number of ways:
- RedStone would enable the long-awaited Arbiturm deployment.
- Venus’ resiliency on the BNB Chain would be upgraded.
- The RedStone team will support the further cross-chain expansion of Venus.
- We would organize dedicated “Venus campaigns” analogous to the ones with Sommelier and LayerBank allocating RedStone Gems to users of Venus Protocol.
- Assign additional rewards for the Venus Prime holders.
- Ensure Venus Protocol’s eligibility for the future RedStone rewards drop
- Further supporting Venus on the marketing and Go-To-Market front with new assets.
COSTS COVERAGE REQUEST
To ensure further smooth cooperation with the Venus protocol RedStone will continue to subsidize and cover the cost of infrastructure maintenance of the XVS / UDS price feed on Ethereum.
We would request coverage of maintenance cost for XVS / USD price feed on Arbitrum amounting to $1,000 / month paid in USDC or USDT. The funds will be used to cover the infrastructure, monitoring and operations costs of price feed upkeep.
The RedStone team is willing to subsidize the gas cost on Arbitrum mainnet for XVS price feed updates. We would request further coverage of gas cost for price feed updates on Ethereum, via Venus’ direct transfer of 2 ETH to a wallet address utilized exclusively for on-chain XVS price feeds updates. We would inform Venus Core Contributors each time the balance drops below 1 ETH to ensure the upkeep of the price feeds updates.
The RedStone team is dedicated to continuing to help Venus in successful expansion horizontally (cross-chain, i.e. on Arbitrum) and vertically (new assets, i.e. the recent proposal for the weETH market on BNB Chain protected by RedStone Oracles).
