Originally published on: October 08, 2024
RedStone Oracles, a leading provider of oracle data for smart contracts, has introduced innovative staking oracles tailored specifically for Bitcoin staking. This groundbreaking implementation allows users to stake their Bitcoin in exchange for liquid-staking tokens (LSTs) like Lombard Staked BTC (LBTC) on the Ethereum blockchain.
Marcin Kaźmierczak, the co-founder, and COO of RedStone, revealed to Cointelegraph that this new development paves the way for utilizing Bitcoin LSTs in decentralized finance (DeFi) applications like lending and more for the first time.
Blockchain oracles play a crucial role in verifying real-world data on the blockchain, enabling seamless integration between off-chain data and blockchain technology. These oracles are essential components in various DeFi protocols, facilitating lending and staking activities that leverage crypto assets effectively.
Staking has emerged as a popular crypto-economic model, particularly relevant to oracle networks within the smart-contract ecosystem. Staking oracles play a vital role in gathering and confirming critical data like staking rewards and slashing events necessary for the seamless operation of LSTs such as Lido Staked Ether (stETH).
With RedStone’s innovative Bitcoin staking oracles, users can now harness the potential of Bitcoin LSTs like LBTC across different DeFi platforms. By leveraging these oracles and LBTC tokens, users can explore opportunities in lending on platforms such as Morpho and Compound, as well as generate composable leverage on Gearbox Protocol.
Kaźmierczak highlighted the transformative impact of Bitcoin staking oracles, suggesting that they could catalyze significant advancements in the DeFi landscape with Bitcoin LSTs, akin to the developments seen with Ethereum LSTs.
The unveiling of Bitcoin staking oracles follows RedStone Oracles’ successful Series A funding round, led by renowned crypto investment firm Arrington Capital, which raised $15 million earlier this year.
In conclusion, as the DeFi ecosystem continues to evolve, innovations like RedStone’s Bitcoin staking oracles are poised to shape the future of decentralized finance and redefine the possibilities for crypto asset utilization. Subscribe to our Markets Outlook newsletter to stay informed about the latest trends and opportunities in the crypto space.
