As the DeFi ecosystem grows, the number of DeFi protocols and underlying networks is diversifying significantly, increasing the need for a more varied oracle ecosystem.
Oracles primarily serve to bring off-chain data onto the blockchain, but each oracle project has its own unique differentiators. This article compares RedStone with Chainlink and Pyth Network to examine its competitive advantages.
Source: Oracles - DefiLlama
The DeFi ecosystem has experienced rapid and explosive growth over the past five to six years. In its early stages, the ecosystem primarily consisted of basic DeFi protocols such as decentralized exchanges and lending protocols. Notable examples include MakerDAO, Uniswap, Compound, Aave, and Kyber Network. At the time, the number of DeFi protocols was quite limited, and oracles were not a major focus, leading most projects to use proprietary oracles or, in the case of Uniswap V1, to operate without one.
The catalyst for DeFi's massive expansion was the "DeFi Summer" of 2020. In June 2020, Compound introduced a liquidity mining program for its COMP token, attracting a large number of users seeking token incentives. Observing this trend, protocols such as Sushiswap, Uniswap, and Yearn Finance launched their own tokens, propelling the DeFi ecosystem to unprecedented levels of growth.
As DeFi expanded and the number of protocols increased, the importance of oracles became more apparent. This was underscored by several attacks, such as the June 2019 Synthetix oracle attack, which resulted in the theft of $37 million worth of synthetic ETH, and the February 2020 bZx oracle attack. These incidents drove the emergence of robust oracle solutions, with Chainlink and others gaining traction during this period.
Today, the DeFi landscape has evolved far beyond basic trading and lending. It now includes liquid staking, restaking, leverage products, and derivatives, among many others. Not only have DeFi protocols diversified, but they also operate across multiple blockchain networks. The increasing variety and complexity of services and blockchain infrastructures have fueled the need for a broader and more adaptable oracle ecosystem.
As DeFi becomes more diverse, Chainlink, once the dominant oracle provider, has seen its market share decline. Meanwhile, new projects like Pyth and RedStone are rapidly gaining ground. This article will briefly examine Chainlink and Pyth before analyzing how RedStone fits into the evolving oracle landscape.
Before diving in, readers unfamiliar with fundamental oracle concepts such as Pull Oracles and Push Oracles, or those looking for an introduction to RedStone Oracles, may find it helpful to read "Why RedStone Was Born.”
Chainlink is the first decentralized oracle network and remains the most dominant oracle project with the highest market share. Beyond just an oracle product that intermediates data between on-chain and off-chain environments, Chainlink also provides services such as cross-chain messaging and blockchain-based computation assistance.
Regarding oracles, Chainlink supports two primary products:
1.2.1 Market and Data Feeds
This is Chainlink's most fundamental and well-known oracle service, operating on a push oracle mechanism, where data is periodically recorded on-chain. It offers four types of data feeds for applications:
Price Feeds: Provides on-chain price data for various assets.
SmartData Feeds: A data feed specialized for real-world asset use cases.
Rate and Volatility Feeds: Provides data related to interest rates, yield curves, and asset price volatility.
L2 Sequencer Uptime Feeds: Monitors the latest status of Layer 2 project sequencers.
Source: Chainlink
Various Chainlink data feeds are updated by a specific group of Chainlink oracle operators. The number and type of operators updating each data feed vary by feed. For example, the BTC/USD feed, as shown in the image above, is managed by 31 operators. Operators report price data individually when a certain amount of time has passed or when an asset's price deviation exceeds a certain threshold.
Currently, Chainlink’s Market and Data Feeds support 1,098 feeds across 18 EVM-compatible networks.
1.2.2 Data Streams
Data Streams is a service that operates using a pull oracle mechanism. Unlike push oracles, which continuously supply data to the blockchain at slow intervals regardless of necessity, pull oracles fetch data only when a dApp requests it. This enables almost real-time data updates at high speed.
Chainlink’s Data Streams currently support 122 assets across six networks. Among these, five are EVM-compatible networks, while the remaining one is Solana. However, this product is not much used in the market now
Pyth Network is an oracle protocol based on the pull oracle mechanism, with a key differentiating feature: instead of intermediaries (operators) like Chainlink, Pyth directly sources data from first-party publishers. Various entities, including DEXs, CEXs, market makers, and hedge funds, participate as first-party publishers within the Pyth Network.
First-party publishers provide data to Pyth’s oracle program, which then aggregates multiple inputs into a single price data point. The oracle program operates on Pythnet, and the final aggregated data on Pythnet is transmitted cross-chain via Wormhole to target blockchain networks.
Pythnet is an application-specific blockchain designed for the Pyth Network oracle, built on the Solana client, but it operates as an independent network separate from the Solana mainnet.
Currently, Pyth Network provides price data for over 850 assets across more than 70 blockchain networks. However, Pyth is dependent on Wormhole, so if Wormhole is down, it affects the operation of Pyth.
Source: RedStone
RedStone is an oracle project based on the pull oracle model. Its goal is to address the inefficiencies of traditional push oracles by implementing a pull oracle system. Notably, RedStone adopted the pull oracle model earlier than both Chainlink and Pyth Network.
One of RedStone’s key strengths is its modular design, allowing for easy customization of oracle components such as data sources, price feeds, validation mechanisms, and data transmission methods. This flexibility enables protocols to tailor the oracle system to their specific needs.
How RedStone Oracle Works:
RedStone oracle nodes collect price data from various sources, including CEXs, DEXs, and websites, sign the data, and transmit it to the Data Distribution Layer (DDL).
The DDL, an off-chain layer where RedStone aggregates price data, distributes the signed data through either RedStone’s own gateway or Streamr-based decentralized gateways. Notably, all off-chain data is stored on Arweave, a decentralized storage protocol, allowing historical data retrieval.
dApps retrieve and use the data from the DDL using either the Pull or Push method as per their requirements.
Additionally, RedStone’s Push Oracle model operates on top of the Pull Oracle model, utilizing a Relayer role to fetch data from the DDL and periodically publish it on-chain.
Now, let’s compare Chainlink, the traditional leader in the oracle ecosystem; Pyth Network, which is challenging Chainlink’s dominance; and RedStone, the fastest-growing oracle in the market today.
2.2.1 Oracle Models
Chainlink primarily operates on a push oracle model, though it supports a pull oracle model for a limited number of assets. In contrast, RedStone and Pyth Network are fundamentally built on a pull oracle model, which offers greater cost efficiency and scalability compared to push oracles.
Additionally, RedStone extends its capabilities by supporting both pull and push oracle models. While pull oracles offer numerous advantages over push oracles, many protocols are accustomed to push oracle model. RedStone’s ability to accommodate both models allows it to cater to a broader range of protocol needs.
2.2.2 Supporting Networks
In terms of supported networks, RedStone and Pyth Network have a competitive edge over Chainlink. Since pull oracle models store data off-chain and fetch it on-demand, they can seamlessly support multiple blockchain networks with fewer limitations. Unlike Chainlink, which primarily focuses on EVM-compatible networks, RedStone and Pyth Network provide data to over 70 blockchains, regardless of EVM compatibility. For Chainlink to support a new blockchain, it has to deploy and manage entirely new node networks for each chain, support native LINK staking on that chain, syncing up the parallel networks etc.
However, since Pyth relies on Wormhole for cross-chain messaging, it has a limitation on supporting new chains that is not supported by Wormhole. Also
2.2.3 Token
Both Chainlink and Pyth Network have their respective tokens, LINK and PYTH, whereas RedStone has yet to release its token. Once RedStone’s native governance token, RED, is launched, it will unlock several benefits that will be explored later in this analysis.
2.2.4 Crypto-economic Security
Since oracle data originates off-chain, oracles inherently rely on third parties. This makes it crucial to establish mechanisms that prevent malicious behavior. One of the most effective and intuitive ways to ensure security in blockchain systems is staking with slashing penalties for misbehavior.
Pyth enforces mandatory staking for data providers (publishers) and allows PYTH holders to delegate tokens to publishers. The Oracle Integrity Staking (OIS) program for Pyth currently has 348 million PYTH staked, which, as of January 28, 2025, amounts to approximately $100 million.
In contrast, Chainlink’s staking program is limited—it is only applied to the ETH/USD feed and has not been fully implemented across its ecosystem. Given that Chainlink secures the highest Total Value Secured (TVS) among oracles, the lack of a comprehensive crypto-economic security mechanism remains a notable drawback.
As for RedStone, staking has not yet been introduced, but once the RED token launches, data providers will be required to stake RED tokens. If a data provider engages in malicious behavior, users will be able to claim compensation from the slashed stake.
2.2.5 Dispute Process
A well-defined dispute resolution process is a critical security feature in any oracle protocol, ensuring that malicious activities can be detected and mitigated. Pyth Network has the most comprehensive dispute process among oracle projects.
In Pyth Network, if the price difference between Pyth’s feed and the most liquid exchanges exceeds 250 basis points (bps) for over 60 seconds, a slashing condition is triggered. The Pythian Council, a committee elected every six weeks, reviews the discrepancy before executing slashing. However, this is not yet decentralized.
Chainlink, on the other hand, has a limited dispute and slashing mechanism that only applies to the ETH/USD price feed. If malicious behavior or an error is reported, the whistleblower is rewarded with 7,000 LINK, while the responsible node operator gets slashed 700 LINK.
For RedStone, a dispute process and slashing mechanism will be implemented once the RED token is launched. If malicious activity results in user losses, users will be able to file claims for compensation from the responsible data provider.
2.2.6 Restaking
One of RedStone’s key differentiators from Chainlink and Pyth Network is its plan to leverage restaking for oracle security.
RedStone has developed RedStone AVS using leading restaking protocols like EigenLayer and Symbiotic. Initially, a small number of data feeds will be integrated, with expansion planned based on demand. This restaking-based security model is expected to offer higher security guarantees compared to traditional single-token staking mechanisms. This is now live in Etherem and Base mainnet.
Source: X (@redstone_defi)
2.2.7 Proof of Reserve (PoR)
One of the most important use cases for off-chain to on-chain data oracles is Proof of Reserve (PoR). PoR allows institutions and protocols to verify asset holdings, ensuring transparency and security for users while mitigating unexpected risks.
Among oracle providers, Chainlink specializes in PoR services, with BitGo, Paxos, and other major firms utilizing its solutions. RedStone also provides PoR services as part of its data feed offerings. For instance, Lombard’s LBTC feed integrates PoR verification, which makes RedStoen one of the only project that can combine EVM and Bitcoin.
RedStone provides both push and pull oracles, making it highly adaptable to various DeFi protocols and blockchain networks. This flexibility has driven RedStone's rapid growth, establishing it as one of the fastest-growing oracle projects in the market. Notably, while other oracles have experienced security breaches, RedStone has maintained a zero-hack record.
The project is aggressively expanding its services to meet diverse DeFi needs, including 1) OEV, 2) providing Proof of Reserve services, 3) launching RedStone AVS with restaking integration, 4) Facilitating tokenized vault support, and more.
Additionally, the upcoming RED token launch will enable staking and slashing mechanisms, enhancing RedStone’s security and accelerating ecosystem growth. While Chainlink dominated the past and Pyth Network has been the rising oracle leader, RedStone is poised to become the next major oracle project to watch.
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