Venus Stars
Introduction
In the dynamic world of DeFi, reliable price feeds are pivotal for the secure and effective functioning of protocols like Venus. The platform has expanded its integration with RedStone Oracles, marking a significant enhancement in ensuring the accuracy and resilience of its price feeds.
The Vital Role of Accurate Price Feeds in DeFi
Price feeds are the backbone of DeFi protocols, enabling them to offer asset collateralization at fair market values. However, the reliability of these feeds is often challenged by extreme market volatility and potential manipulative tactics. To counter these threats, DeFi protocols are increasingly adopting redundant price feed systems, utilizing multiple sources to assure accuracy and dependability.
Venus Protocol’s Resilient Oracle with RedStone
In its continuous effort to strengthen its platform, Venus Protocol has integrated RedStone Oracles’ price feeds into its proprietary ResilientOracle module. This move is not just about adding another layer of price information; it’s about bringing in a provider with cutting-edge data aggregation and verification techniques. RedStone’s technology ensures that the price feeds are not only accurate but also diverse, answering Venus’ further expansion needs.
On the BNB Chain, the price obtained from the MAIN oracle will be compared with the PIVOT price, and it will be discarded if the difference is too large. The difference in the prices will be considered too large if the ratio “pivot_price / main_price” is not between 0.99 and 1.01. These thresholds have been calculated by analysing historical data of both (RedStone and Chainlink) price feeds. It can be even further expanded in the future via the Venus Improvement Proposal (VIP).
“RedStone team has been very responsive and professional while providing the requested Oracle services. Our tech due diligence has shown that the RedStone Classic model provides not only flexibility with price feeds on various chains but is also fully compatible with the traditional push Oracle model. We can only vouch for the services RedStone provides,” said Brad Harrison, Head of Venus Labs.
Customization to Venus’ Needs and Community Engagement
The integration process involved customization and development work by the RedStone team to exactly address what Venus has been missing with the Main and Pivot Oracle. The Venus community has been actively involved in this process, proposing initiatives and allocating resources to ensure seamless integration. This collaborative effort highlights the community-driven nature of the Venus Protocol.
RedStone as the Main Oracle on Ethereum Mainnet
Nevertheless, the RedStone and Venus cooperation does not end there. The community has witnessed the big launch of Venus on Ethereum Mainnet proposed by Michael Egorov, Founder of Curve. It is the next step, as RedStone is the main Oracle for XVS price feed there (native Venus token) and will be adopted for other assets like weETH from Ether.fi, ezETH from Renzo or sUSDe from Ethena.
Conclusion
The integration of RedStone Oracles into Venus Protocol is a strategic move towards bolstering the platform’s price feed resilience. By incorporating RedStone as the reliable price feed provider, Venus is set to offer its users a more secure and robust DeFi experience. This development reaffirms Venus Protocol’s commitment to maintaining its leading position in the BNB ecosystem and cross-chain expansion plans.
To stay up to date with the latest developments and progress, you can visit the Venus Protocol Website and Dapp. For the latest news and events, we invite you to visit the Venus Community. To receive the latest updates, please follow us on Twitter and in our Telegram Announcement Group. We also invite you to join to our global community on Telegram for a broader discussion.