DeFi Oracle RedStone Launches AVS Testnet on EigenLayer

DeFi oracle provider RedStone has launched its AVS testnet on the popular Ethereum restaking protocol, EigenLayer.

This is the first instance of an oracle using EigenLayer’s restaking technology to improve security.

RedStone – Own layer

According to the official press release shared with CryptoPotato, this integration represents an important step for RedStone and the wider DeFi ecosystem, as EigenLayer’s restaking model will allow the oracle provider to secure its systems by adjusting the amount of guarantee based on market conditions.

This is expected to add additional defense against potential attacks.

RedStone will be able to ensure that its data feeds remain safe and reliable by leveraging different types of collateral, including ETH, Liquid Staking Tokens (LST), stablecoins, and even BTC.

Alan Curtis, COO of Eigen Labs, said he commented on the launch of the AVS testnet at EigenLayer.

“Oracles are essential to the DeFi world as they enable 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 are excited to welcome them to the EigenLayer ecosystem.”

EigenLayer: Until now in 2024

The latest development comes less than a month after EigenLayer’s native cryptocurrency, EIGEN, made its long-awaited 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 after its launch. The launch, considered one of the most talked about testimonial events of 2024, was officially announced by the Eigen Foundation.

EigenLayer is a major player in the restaking ecosystem, with a total value locked (TVL) of $10.77 billion according to data compiled by DeFiLlama.

Due to its popularity, the restaking platform’s official X account was hacked last week, leading to a series of fraudulent posts that included a fake airdrop campaign targeting users eligible for an earlier distribution . Eigen Labs acknowledged the breach and advised users to stay away from suspicious links, and urged them to verify all interactions through the official website, “eigenlayer.xyz.”

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