RedStone Boosts GMX Ecosystem with Real-time Valuation for GLP Liquidity TokensExternal - Press Release
By: Chainwire • Loading...External PR
Redstone, an originator of the next-generation decentralized finance oracle platform, has announced a collaboration with GMX, the largest decentralized perpetual exchange operating on Arbitrum and Avalanche. The cooperation promotes the early adoption of GMX V2 LP tokens, called GM tokens, as collateral by DeFi protocols, boosting the soon-to-be-launched V2 version of the leading perpetual exchange.
The involvement of RedStone will drive more users to the GMX ecosystem, enabling other partner platforms to utilise the GMX V2 tokens, as they currently can with the GLP liquidity token in their specific use cases. By providing accurate, real-time valuation of GM tokens, RedStone Oracles will enable a wide range of DeFi applications such as vaults and lending platforms to safely and efficiently manage their financial operations, bolstering the GMX V2 ecosystem. RedStone also helps over-and under-collateralized lending protocols to create a positive feedback loop between protocols and GMX’s liquidity, by creating a price-feed bridge linking them.
RedStone has already been delivering a GLP price feed to dApps such as DeltaPrime, providing the real-time price data needed to allow the protocol to offer secure under-collateralized loans for its users. Without precise, up-to-the-minute data, the collateral price would not be represented accurately, which could put DeltaPrime's liquidity providers' money at risk. Delta Prime leverages RedStone’s pricing data to calculate a user’s Health Score – a parameter which tells the protocol when to liquidate its users’ positions and give the tokens back to its LPs.
GLP is GMX’s multi-asset liquidity pool, which facilitates all swaps and leverage trading in V1 of the protocol. All liquidity in GLP is user-contributed, with no external market makers involved. Users can mint GLP tokens with any index asset and redeem their GLP for any index asset. The minting and redemption prices depend on the total worth of assets in the index, including profits and losses from open positions, divided by the GLP supply.
With presence on all EVM L1 and L2 networks, modular design and customizable data feeds, RedStone is disrupting the status quo oracle space, providing Web3 and DeFi protocols with actionable real-time data at lower latency. Having raised $7 million in seed funding last year – supported by some of the most renowned Web3-focused VCs such as Lemniscap, Blockchain Capital, Maven11 and Coinbase Ventures – RedStone recently announced an exclusive $350,000 angel investment round led by recognized Web3 leaders including Stani Kulechov, Sandeep Naiwal, Alex Gluchovski and Emin Gün Sirer. RedStone provides affordable and reliable data feeds delivered to over 40 chains including Ethereum, zkSync Era, Avalanche, Polygon PoS and zkEVM, Linea, Celo, Optimism, Arbitrum, Fantom, Stacks and EVMOS – all with testnets.
Founded in 2021 with first production deployment in January 2023, RedStone leverages a proprietary ‘EVM-connector’ method for putting data on-chain, in which data is automatically attached to a transaction and subsequently erased, reducing gas fees. By keeping signed data packages in the RedStone Data Access Layer and delivering them according to conditions set by dApps, gas costs can be reduced by up to 90% while achieving sub-second price feed latency on high-performance ecosystems. Moreover, RedStone offers data feeds that are unique and otherwise unavailable in the industry.
Jakub Wojciechowski, CEO and Founder of RedStone, said: “Our infrastructure is adjusted to swiftly add LP tokens, hence GLP and V2 GM tokens are a perfect fit. We facilitate the growth of the ecosystem on top of GMX and keep expanding the RedStone X model, which offers almost zero latency for dApps.”
Coinflipcanada, GMX Core Contributor, said: “RedStone has been a valuable partner in growing usage of GLP as a collateral asset within DeFi, their integration with DeltaPrime is a perfect use case here. Now, our focus is on V2 launch, which will bring even more utility with GM tokens. By introducing them to DeFi protocols, RedStone can really make a difference.”
RedStone is revolutionizing the Oracles industry by implementing novel modular design and 3 tailor-made data consumption models. You can build the new generation of DeFi & Web3 protocols based on RedStone’s versatile data offering of long-tail, Lp, Ecosystem-native tokens, as well as Real World Data and custom feeds.
GMX is a permissionless, decentralized exchange protocol that provides a capital-efficient on-chain solution for both hedging and taking leveraged exposure to leading cryptocurrencies including BTC, ETH, and AVAX.
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