RedStone Launches Atom: An Innovative Oracle Machine Technology with Settlement Intelligence

RedStone recently launched a major breakthrough in Oracle Machine technology—RedStone Atom, which is the first Oracle Machine solution with intelligent liquidation capabilities. Unlike traditional Oracle Machines, Atom can proactively enhance the efficiency of lending protocols, introducing zero-latency Oracle Machine updates that allow protocols to liquidate positions faster, improve loan-to-value ratios, and deliver better risk-adjusted returns.

Atom can dynamically capture the Oracle Extractable Value (OEV) when putting price data on-chain, and return this portion of value to the protocol, which can be used as revenue, to enhance user earnings, or to reduce borrowing costs. This technology is driven by innovative application-specific sorting techniques and does not introduce liquidation delays or additional security assumptions.

Currently, Atom has been launched on a certain blockchain platform, providing security for multiple well-known lending protocols, and plans to deploy on more public chains. It can be enabled on any RedStone data source and any chain without the need for code changes or engineering investment.

The main advantages of Atom include:

1. Lending agreement performance improvement: Atom transforms the Oracle Machine into a performance engine, unlocking higher LTV and better yields through instant settlement.
2. Zero-Latency Settlement: Instantly update prices when they are liquidated, allowing the protocol to adopt stricter risk parameters.
3. Native OEV Capture: Capture settlement value through sealed auctions and return it to the protocol.
4. Atomic-level transactions: Price updates, clearing, and OEV payments are completed in a single transaction of approximately 300 milliseconds.
5. No integration work required: Can be activated instantly on any RedStone data source and any chain, without code changes.

The co-founder of RedStone stated that Atom represents a fundamental transformation in the Oracle Machine space, tailor-made for protocols, giving lending protocols an advantage in the competition for optimal yields, while also addressing the hundreds of millions of dollars OEV efficiency issue that has long existed in DeFi.

Atom addresses the core issues of traditional push-based data sources. It realizes a push-based data source that updates instantly when the protocol requires, allowing DeFi protocols to complete liquidations faster and more efficiently than competitors, thereby increasing the LTV ratio and providing users with higher returns and value.

OEV has always been a significant vulnerability in blockchain Oracle Machines, with conservative estimates of total losses exceeding $500 million. Atom further enhances the OEV concept through innovative application-specific sorting technology. It uses a certain technological platform to conduct Atom OEV auctions, bringing new price flows into off-chain auctions that last for less than 300 milliseconds. After the auction ends, the system will atomically update the data source and settle the auction.

Integrating Atom does not require technical integration; it can be natively enabled on any RedStone price source and on any chain. The protocol only needs to apply to RedStone to enable Atom on the data source being used and provide an address to receive OEV.

The launch of Atom marks the beginning of a new era in blockchain Oracle Machine technology. Lending protocols that adopt Atom to upgrade their data sources will be able to surpass competitors with more aggressive risk parameters, bringing higher returns to users. RedStone and the related technology teams will retain a portion of the OEV captured by Atom for the future development of the protocol and ecosystem.

RedStone is a modular blockchain Oracle Machine optimized for DeFi and on-chain finance, focusing on yield-generating assets. It provides secure, reliable, and customizable data sources across more than 110 chains and has earned the trust of over 170 clients, including several leading protocols.