Ether.Fi has forged a $500 million partnership with RedStone Oracles to enhance the security of RedStone’s data oracles, crucial for transmitting information across blockchains and the external world. This collaboration marks a significant move within the rapidly evolving “actively validated services” (AVS) sector, keen on leveraging EigenLayer’s innovative “restaking” protocol to bolster Ethereum’s security framework.
Pioneering Liquid Restaking Service
As the largest liquid restaking service on EigenLayer, Ether.Fi’s substantial investment aims to support RedStone’s oracle protocol, reinforcing the safety and reliability of its data feeds. Ether.Fi, among others, utilizes EigenLayer’s pooled security system, allowing operators to delegate their stake to power specific AVSs like RedStone Oracles.
The Role of eETH and Liquid Restaking
More than 20,000 node operators from Ether.fi will manage RedStone’s AVS, employing Ether.fi’s liquid restaking token, eETH, as a defense mechanism against potential network vulnerabilities. This system enables users to receive extra rewards and tradeable tokens that represent their investment, promoting a more secure and profitable restaking process.
Expanding Collaborations and Future Developments
This deal follows Ether.Fi’s previous $600 million commitment to Omni, another AVS aimed at facilitating communication among layer 2 rollups. With over $15 billion in deposits, EigenLayer continues to attract significant interest, though the full deployment of its services on Ethereum’s mainnet awaits further development.
A Growing Ecosystem of AVS Networks
As networks like RedStone Oracles prepare to fully integrate with EigenLayer later this year, the partnership between Ether.Fi and RedStone Oracles underscores the potential for advanced security and efficiency in blockchain data transmission, setting a precedent for future collaborations within the AVS domain.
