DeFi Oracle RedStone AVS Testnet Launches on EigenLayer

DeFi oracle provider RedStone has launched an AVS testnet on the popular Ethereum blockchain protocol EigenLayer.

It is the first instance of Word to use EigenLayer's recovery 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 Diffie ecosystem, as the EigenLayer redundancy model allows the provider to adjust the guarantee amount based on market conditions to protect its systems.

This is expected to provide additional protection against potential attacks.

RedStone can ensure that its data feeds are safe and secure by using different types of collateral such as ETH, Liquid Staking Tokens (LSTs), stablecoins and BTC.

Commenting on the launch of the AVS testnet at EigenLayer, Alan Curtis, COO of Eigen Labs, developer of the reconfiguration protocol, said:

“Oracles are essential to the world of DeFi, enabling secure data connections. RedStone is an example of leveraging our resiliency capabilities to take the security of a mature oracle system to the next level. We're excited to welcome them to the EigenLayer ecosystem.”

EigenLayer: By 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 after its release. The startup, which is considered to be one of the most talked about token events of 2024, has been officially announced by the Aigen Foundation.

EigenLayer is one of the top players in the rebranding ecosystem with a total value locked (TVL) of $10.77 billion, according to data compiled by Defilama.

Due to its popularity, the rebooking platform's official X account was hacked last week, leading to several fraudulent posts that included a fake airdrop campaign targeting users who had qualified for the previous distribution. Eigen Labs acknowledged the breach and advised users to stay away from suspicious links, urging them to verify all communications through the official website of “eigenlayer.xyz”.