The Blockchain Oracle Company Redstone, which feeds data on hundreds of chains and rollups, has introduced a product that has been designed to limit losses.
It is fed by Fastlane Labs’ Atlas, an implementation abstract protocol for securing apps for chains.
Immediate results
In a press release shared with Cryptopotato, Redstone, a modular Oracle infrastructure for financing on the chain, today announced the launch of Atom, the first native liquidation intelligence Oracle.
The product introduces a new Defi-Primitive by improving the loan efficiency, making immediate price updates on the chain possible, facilitate latency-free liquidations and automate the recording of maximum extremely value (MEV), all without requiring code changes to the protocol.
Traditional confidence Decentralized financing (Defi) loan protocols on “push” oracles that update the prices for the chain with predetermined intervals or when a pre -defined divergence occurs, ie a change of 0.4% compared to the latest update.
During volatile markets this leads to delays, missed liquidations and lost income. To tackle this, protocols with cautious risk parameters, lower loan-to-value (LTV) ratios and higher thresholds for liquidation colleagues, which ultimately reduce capital and opportunities.
Atom will tackle this by enabling liquidators to activate real -time price updates for each liquidation option, instead of waiting for the Oracle to update prices. This indigenous intelligence will make it possible to:
- Record more liquidation options
- Increase the LTV ratios safely
- Deliver better corrected efficiency
- Retain mev that would otherwise leak to third parties
Liquidation MEV has been expensive for Defi protocols, as usually, this value is recorded by validators or block builders that try to liquidate users during Oracle delays as quickly as possible.
The new product from Redstone will record that value in the Oracle layer itself, which routes it directly to the protocol, which in essence makes a reinvestment possible of what was recovered in protocol income, revenue improvement and lower interest rates or reimbursements for borrowers.
The co-founder of Redstone, Marcin Kaźmierczak, commented on the release:
“On-chain loans introduces a new phase of competition and protocols need innovative but reliable infrastructure to stay ahead.
Atom runs the liquidation model on his head. Instead of third parties who benefit from users liquidations, protocols can now decide how that value is shared, either by stimuli, yield from boost or borrower rewards. “
The power under the hood
Atlas, an application-specific sequencer developed by Fastlane Labs, feeds the new product and makes atomary MEV auctions a possibility. It is activated almost immediately as soon as a liquidation condition is detected.
Bidders compete among each other to make the exclusive right to carry out the liquidation, and the winning bid is handled in the chain at the price update. It is functional for all Ethereum virtual machine (EVM) chains, without any off-chain functionality.
By taking the MEV recording directly into the Oracle Layer, ATOM introduces a new paradigm shift, which goes beyond data to improve performance, capital efficiency and sustainability.