RedStone, a Tallinn-based DeFi oracle platform, announced on Monday that it has raised $7 million (about €6.9 million) 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 its core team, strengthen its presence at international conferences and 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 decentralized RedStone Oracles & modular computing 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 creating a cross-chain data oracle that provides price data for Smart Contracts & DeFi protocols.
The company uses the Arweave blockchain to create affordable data storage with real-world permanent crypto and data entry 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 act as bridges between blockchains and the outside world.”
Smart contracts and blockchains, at their core, cannot access data outside of their network. That’s a big problem because many contractual agreements rely on information that isn’t stored on the blockchain.
Some developers developed ways to bring data from off-chain sources into the network to solve this problem. Here is where oracle comes into play!
RedStone Oracle provides such data streams to over 30 chains, including Ethereum, Avalanche, Celo, Arbitrum, Polygon and Fantom. It delivers price data streams 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.
Speaking to The Block, Jakub Wojciechowski, CEO and founder of RedStone, says: “Today’s announcement represents another strong stamp of approval for our unique value proposition from some of the most recognized and recognized investors in the blockchain and DeFi sector. Since day one, we have We have been clear in our ambition to set the standard for fast, affordable connectivity between blockchains and real-world data.This funding round will help us expand the availability of our signature solutions for Oracle and Warp Contracts, tailored to the contours of today’s rapidly evolving DeFi and Web3 -landscape.”
Investor
Lemniscap is an investment company specializing in investments in emerging cryptoassets and early-stage blockchain startups.
Speaking to The Block, Roderik van der Graaf, founder of Lemniscap, says: “While the DeFi space continues to be fertile ground for innovation, the underlying 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 decentralized oracles that can process massive amounts of data has never been more pronounced. We are pleased to support Redstone as the company continues to underline its credentials as the oracle platform of choice for DeFi users across the industry spectrum.”
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