RedStone Raises $7M Seed Round Led by Lemniscap to Further Web3 Developments
- RedStone leverages the Arweave blockchain to create affordable storage with a permanent audit trail.
- According to Graaf, the current oracles running most decentralized financial platforms (DeFi) are slow yet expensive for developers to scale activities.
- For the past two years, the decentralized financial market (DeFi) has led to the adoption in the cryptocurrency and blockchain industries.
RedStone protocol, a next-generation cross-chain data oracle providing pricing data for financial protocols, has announced that it raised a $7 million seed round led by Lemniscap. According to a press release on the matter, RedStone intends to direct the funds to further developing Web3 by making strategic hirings.
Other notable investors in the just concluded RedStone seed funding round include Blockchain Capital, Coinbase Ventures, Distributed Global, Lattice Fund, Arweave, KR1 plc, Bering Waters, Maven11, SevenX, FoliusVentures, Numeus, The Graph, 4SV, PermanentVentures, and ComputeVentures.
“Today’s announcement represents yet another strong seal of approval for our unique value proposition from some of the most reputable and renowned investors in the blockchain and DeFi sector. ……. This funding round will help us broaden accessibility to our signature Oracle and Warp Contracts solutions, tailored to the contours of today’s rapidly evolving DeFi and Web3 landscape,” noted Jakub Wojciechowski, CEO, and founder of RedStone.
Speaking earlier to investors, Roderik van der Graaf, Founder of Lemniscap said they support RedStone as the company continues to underline its credentials as the oracle platform of choice for DeFi users across the industry spectrum.
According to Graaf, the current oracles running most decentralized financial platforms (DeFi) are slow yet expensive for developers to scale activities. Notably, RedStone leverages the Arweave blockchain to create affordable storage with a permanent audit trail.
Per the developers, RedStone samples data sources and stores the information using Arweave’s highly secure, low-cost decentralized storage infrastructure, thereby providing a fully auditable historical audit trail of information.
RedStone Protocol and the Ballooning DeFi Ecosystem
For the past two years, the decentralized financial market (DeFi) has led to the adoption in the cryptocurrency and blockchain industries. According to data provided by DeFi Pulse, the total value locked (TVL) in the decentralized financial protocols is $34.37 billion.
Maker, AAVE, and Curve finance are the top DeFi protocols with $7.9B, $4.86B, and $4.73 billion respectively. Other notable DeFi protocols with substantial TVL include Ethereum-backed Uniswap which has approximately $3.42 billion and Convex finance with around $2.88 billion.
RedStone has previously raised funds from investors seeking to develop the fast and convenient DeFi oracles. Mid-July of 2021, RedStone announced that it raised $525K in its pre-seed financing round, led by Maven 11 Capital.
The company has over time grown to a major DeFi contributor tracking over 1,000 assets from 46 sources. Furthermore, the success of DeFi protocols relies on timely and accurate data which can only be provided by reputable sources.
For instance, an ETH/USD pair may have different pricing at a particular time thus making it challenging for DeFis to play fair to their customers. As such, the RedStone protocol collects data from several cryptocurrency exchanges and finds the median data on all of them.
Thereby ensuring customers get the best pricing at any given time.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
