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Image credits: RedStone

RedStone, a Tallinn-based DeFi oracle platform, announced on Monday that it has raised $7M (approximately €6.9M) in a Seed round of funding led by Lemniscap. Other participants include Coinbase Ventures, Blockchain Capital, Distributed Global, Lattice, Arweave, Bering Waters, Maven11, and SevenX Ventures. 

The capital will allow the Estonian startup to grow the core team, strengthen its presence at international conferences & hackathons and expand partnerships with various blockchains, protocols, and applications.

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RedStone says the funds will also play a key role in further developing its decentralised RedStone Oracles & modular data-processing Smart Contracts on Arweave called Warp.

The announcement comes one year after raising $525K in July 2021 from Maven 11 Capital, 1kx, Arweave, and other investors.

RedStone: What you need to know

Founded by Jakub Wojciechowski in 2021, RedStone is a Web3 startup that creates a cross-chain data oracle providing pricing data for Smart Contracts & DeFi protocols. 

The company uses Arweave blockchain to create affordable data storage with permanent crypto and real-world data feeds audit trails.

What is Oracle?

According to the definition from the world’s largest crypto exchange Binance, “Blockchain oracles are third-party services that provide smart contracts with external information. They serve as bridges between blockchains and the outside world.”

Smart Contracts and blockchains cannot access off-chain data (data outside the network). However, many contractual agreements require data from the outside world to execute the agreement.

Smart Contracts and blockchains, at their core, cannot access data outside of their network. It is a big problem because many contractual agreements rely on information not stored on the blockchain.

Some developers developed ways to bring data from off-chain sources onto the network to solve this problem. Here’s where oracle comes into play!

RedStone Oracle delivers such data feeds to over 30 chains, including Ethereum, Avalanche, Celo, Arbitrum, Polygon, and Fantom. It delivers price data feeds covering long tail tokens, Forex, commodities, and much more in a scalable and cross-chain manner. 

RedStone says its product design ensures resistance to network congestion and enables the delivery of data to projects every few seconds.

Jakub Wojciechowski, CEO, and founder of RedStone, speaking to The Block, says, “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. Since day one, we have been clear in our ambitions to set the standard for rapid, affordable connectivity between blockchains and real-world data. 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.”

Investor

Lemniscap is an investment firm specialising in investments in emerging crypto assets and early-stage blockchain startups.

Roderik van der Graaf, Founder of Lemniscap, speaking to The Block, says, “While the DeFi space continues to provide fertile ground for innovation, the foundational infrastructure has remained static over time and is not fit for purpose in today’s rapidly scaling, blockchain-agnostic environment. Given the conveyor belt of sophisticated DeFi protocols hitting the market, the need for decentralised oracles that can process huge amounts of data has never been more pronounced. We are excited to support Redstone as the company continues to underline its credentials as the oracle platform of choice for DeFi users across the industry spectrum.”