Ether.Fi, the leading liquid staking platform on EigenLayer, has struck a massive $500 million deal with Redstone Oracles. Under this arrangement, Ether.Fi will be responsible for powering Redstone’s oracle protocol. This partnership enables Redstone to access vital information both on and off the blockchain through Ether.Fi’s capabilities.
Redstone Oracles represents a typical case of an “Actively Validated Service” (AVS) network. Similar to other AVS networks, Redstone is exploring the potential of EigenLayer due to the excitement surrounding its latest “restaking” protocol.
This week, Coinspeaker announced that EigenLayer initiated a trial run of its service on Ethereum‘s primary network. Despite having more than $12 billion in user deposits, a significant chunk of this sum is attributed to intermediaries for liquid staking such as Ether.Fi.
it’s worth noting that EigenLayer can initiate its “pooled security” system by utilizing staked deposits with sufficient capacity. Consequently, operators have the ability to transfer their stake to empower AVS networks through delegation.
Ether.Fi and Redstone have released a shared statement detailing their new deal’s terms and conditions. (Or) The specifics of Ether.Fi and Redstone’s recent agreement are outlined in a mutual statement they’ve put out.
Approximately 20,000 members from Ether.fi community will be responsible for managing RedStone’s Actively Validated Service (AVS), utilizing Ether.fi’s proprietary liquid staking token named eETH in the process.
“Furthermore, the paraphrased Ether is described as acting as a protective measure against network issues like downtime and crypto-economic assaults among RedStone’s node operators.”
Ether.Fi’s Game-Changing Approach and Its Broader Implication on DeFi
Redstone isn’t the only AVS (Automated Market Making Automated Asset Swapping) that has reached an agreement with Ether.Fi for a significant investment. In fact, just last month, Ether.Fi announced a commitment of $600 million from its stake towards another AVS network, Omni.
Yet, these partnerships demonstrate Ether.Fi’s dedication to improving DeFi protocols’ efficiency and scalability. These collaborations are based on the principle of staking crypto assets in smart contracts to maintain network functions and secure blockchain transactions.
In the world of Decentralized Finance (DeFi), protocols have gained a reputation as attractive targets for hackers and malicious actors. However, the security aspect of restaking is crucial in mitigating these risks. Restaking essentially involves locking tokens to receive rewards, minimizing the opportunities for exploits or vulnerabilities within the DeFi system.
As Ethereum’s ecosystem develops further, restaking becomes increasingly important for strengthening network security and promoting long-term expansion in the Decentralized Finance (DeFi) industry.
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2024-04-15 10:40