Oracle provider RedStone has launched its price feed infrastructure on the Stellar network, introducing a new data layer for decentralized finance (DeFi) applications on the blockchain, historically focused on stablecoin payments and transfers.
The listing provides prices for major crypto assets and stablecoins on the Stellar mainnet, including Bitcoin (BTC), Ether (ETH), USD Coin (USDC), and PayPal USD (PYUSD). The release also includes pricing information for Franklin Templeton’s BENJI tokenized money market fund.
RedStone said channels to support financial applications such as lending markets, decentralized exchanges (DEXs) and tokenized real assets (RWA) platforms have been built on Stellar.
The launch adds a new infrastructure provider to Stellar’s emerging DeFi stack as developers experiment with lending, tokenized assets and onchain financial services.
Stellar is expanding the DeFi infrastructure
RedStone said the price collections rely on a curve-based update system and purity checks designed to ensure data accuracy for financial applications.
“Stellar has long demonstrated its power as a blockchain for real-world financial activity, particularly in payments and stablecoins,” RedStone co-founder Marcin Kazmierczak said in a statement.
He added that the enterprise-grade infrastructure for the network “is lacking” to enable advanced financial applications.
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RedStone operates in a competitive market dominated by Chainlink. Data from DeFiLlama shows that Chainlink provides about 64% of the market by value, followed by Chronicle with 11%.
Oracles internal protocol is about 6%, while Pyth and RedStone are about 5.8% and 5.5% respectively.
Oracle Vulnerabilities Highlighted by Recent Exploit
The launch comes weeks after Stellar’s DeFi exploit points to risks related to the prices and valuation of collateral in credit protocols.
On February 21, attackers drained nearly $10 million from the YieldBlox DAO-managed loan pool built on the Blend protocol after manipulating the price of the USTRY token used as collateral.
A security analysis by blockchain security firm BlockSec found that the lending protocol relies on a price path linked to the USTRY/USDC bearish market on the Stellar decentralized exchange. The manipulated price inflated the collateral value of the token and allowed the attacker to borrow the asset from its true value.
A Redstone spokesperson told Cointelegraph that relying on thin onchain markets for price discovery could expose credit pools to manipulation risks.
“The exploit in February was only possible because oracle was priced out of the market with less than a dollar in hourly trading volume,” the spokesperson said.
RedStone said its price feeds instead use deviation-based updates, typically 0.5% to 1% for stablecoins, as well as minimal daily updates to ensure the data is current.
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