Oracle provider RedStone has launched pricing infrastructure on the Stellar network, introducing a up-to-date data layer for decentralized finance (DeFi) applications on the blockchain, which has historically focused on stablecoin payments and transfers.
The implementation provides price data for major crypto assets and stablecoins on the Stellar mainnet, including Bitcoin (BTC), Ether (ETH), USD Coin (USDC), and PayPal USD (PYUSD). The implementation also includes price data for the Franklin Templeton BENJI tokenized money market fund.
RedStone said the channels are designed to support financial applications such as lending marketplaces, decentralized exchanges (DEX) and Stellar-based tokenized real-world asset (RWA) platforms.
The launch adds a up-to-date infrastructure provider to Stellar’s emerging DeFi stack as developers experiment with lending, tokenized assets, and onchain financial services.
Stellar is expanding DeFi infrastructure
RedStone says its price feeds rely on a bias-based update system and freshness checks designed to ensure data accuracy for financial applications.
“Stellar has long demonstrated its strength as a blockchain in real-world financial activities, particularly in payments and stablecoins,” RedStone co-founder Marcin Kaźmierczak said in a statement.
He added that Oracle’s enterprise-level infrastructure was “lacking” for the network to unlock more advanced financial applications.
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RedStone operates in a competitive Oracle market dominated by Chainlink. Data from DeFiLlama can be seen Chainlink secures about 64% of the market by value, with Chronicle taking second place with 11%.
Internal Protocol oracles account for approximately 6%, while Pyth and RedStone account for approximately 5.8% and 5.5%, respectively.
Oracle risk highlighted by recent exploit
The launch comes weeks after a DeFi exploit on the Stellar platform highlighted the risks associated with pricing data and security valuations in lending protocols.
On February 21, attackers transferred approximately $10 million from a lending pool managed by the YieldBlox DAO built on the Blend protocol after manipulating the price of the USTRY token used as collateral.
Security analysis by blockchain security company BlockSec found the lending protocol was based on a price path linked to the shallow USTRY/USDC market on the Stellar decentralized exchange. The manipulated price inflated the value of the token’s collateral, allowing the attacker to borrow assets in excess of its actual value.
A Redstone spokesperson told Cointelegraph that relying on onchain slender markets to set prices could expose lending pools to the risk of manipulation.
“The February exploit was only possible because Oracle was setting the price in a market where the hourly trading volume was less than one dollar,” the spokesman said.
RedStone says its price feeds instead operate deviation-based updates, typically around 0.5% to 1% for stablecoins, along with minimal daily refreshes to keep the data fresh.
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