The blockchain oracle company Redstone, which feeds data across hundreds of chains and rollups, has introduced a product designed to limit losses.<\/p>\n
It will be fueled by FastLane Labs\u2019 Atlas, an execution abstraction protocol for securing on-chain apps.<\/p>\n
In a press release shared with\u00a0CryptoPotato,\u00a0<\/em>Redstone, a modular oracle infrastructure for on-chain finance, announced the launch of Atom today, the first native liquidation intelligence oracle.<\/p>\n The product introduces a new DeFi primitive by enhancing lending efficiency, enabling instant on-chain price updates, facilitating latency-free liquidations, and automating the capture of Maximal Extractable Value (MEV), all without requiring any code changes to the protocol.<\/p>\n Traditionally, decentralized finance (DeFi) lending protocols rely on \u201cpush\u201d oracles that update on-chain prices at predetermined intervals or when a predefined divergence occurs, i.e., a 0.4% change from the last update.<\/p>\n During volatile markets, this leads to delays, missed liquidations, and lost revenue. To address this, protocols overcompensate with cautious risk parameters, lower Loan-to-Value (LTV) ratios, and higher liquidation thresholds, which ultimately reduce capital and yield opportunities.<\/p>\n Atom will tackle this by enabling liquidators to trigger real-time price updates at every liquidation opportunity, rather than waiting for the oracle to update the prices. This native intelligence will make it possible to:<\/p>\n Liquidation MEV has been costly to DeFi protocols, as usually, this value is captured by validators or block builders that attempt to liquidate users during oracle lags as quickly as possible.<\/p>\n Redstone\u2019s new product will capture that value inside the oracle layer itself, routing it directly to the protocol, essentially allowing for a reinvestment of what was recovered into protocol revenue, yield enhancement, and lower interest rates or fees for borrowers.<\/p>\n The Co-Founder of Redstone, Marcin Ka\u017amierczak, commented on the release:<\/p>\n \u201cOn-chain lending is entering a new phase of competition, and protocols need innovative, yet reliable, infrastructure to stay ahead.<\/p>\n Atom flips the liquidation model on its head. Instead of third parties profiting from user liquidations, protocols can now decide how that value is shared, whether through incentives, yield boosts, or borrower rewards.\u201d<\/p>\n<\/blockquote>\n Atlas, an application-specific sequencer developed by FastLane Labs, powers the new product, making atomic MEV auctions a possibility. It\u2019s triggered almost instantaneously once a liquidation condition is detected.<\/p>\n Bidders compete amongst each other for the exclusive right to carry out the liquidation, and the winning bid is settled on-chain upon the price update. It\u2019s functional across all Ethereum Virtual Machine (EVM) chains, without requiring any off-chain functionality.<\/p>\n By ingraining the MEV capture directly into the oracle layer, Atom introduces a new paradigm shift, moving beyond data delivery to enhance performance, capital efficiency, and sustainability.<\/p>\n Postul RedStone Brings Real-Time Liquidations and Native MEV Capture to Lending Protocols With Atom<\/a> a ap\u0103rut prima dat\u0103 pe CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The blockchain oracle company Redstone, which feeds data across hundreds of chains and rollups, has introduced a product designed to limit losses. It will be fueled by FastLane Labs\u2019 Atlas, an execution abstraction protocol for securing on-chain apps. Instantaneous Results In a press release shared with\u00a0CryptoPotato,\u00a0Redstone, a modular oracle infrastructure for on-chain finance, announced the […]<\/p>\n","protected":false},"author":1,"featured_media":29898,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-29896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-feeds"],"yoast_head":"\n\n
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The Power Under The Hood<\/h2>\n