RedStone launches the first oracle with liquidation intelligence, Atom, equipped with a lending enhancement engine with liquidation intelligence.

RedStone is proud to unveil a major breakthrough in oracle technology: RedStone Atom—the first liquidation-intelligent oracle.

Unlike traditional oracles, RedStone Atom is the first solution to proactively improve the efficiency of lending protocols. It introduces zero-latency oracle updates, enabling protocols to liquidate positions faster, improve loan-to-value ratios, and deliver superior risk-adjusted returns compared to competitors.

Atom also dynamically captures Oracle Extractable Value (OEV) as prices are on-chain, returning this value to the protocol, which can be used as revenue, increase user yields, or reduce borrowing fees.

Atom is powered by FastLane Labs' innovative Application Specific Sequencing technology and introduces no liquidation delays or additional security assumptions.

RedStone Atom can be enabled on any RedStone data source, on any chain, without requiring code changes or engineering effort.

Atom is already live on Unichain, providing security for Compound Finance, Morpho, Venus Protocol, and Upshift, and can be integrated into BNB Chain, Base, Berachain—with Ethereum, HyperEVM, Arbitrum, and more coming soon. To enable Atom on any RedStone data source, please contact the RedStone team.

Key Points:

• Lending Protocol Performance Improvements: Atom makes the oracle the performance engine. Instant liquidations unlock higher LTV and better yields, giving the protocol a measurable competitive advantage.
• Zero-Latency Liquidations: Atom updates prices instantly upon liquidation, unlocking tighter risk parameters and outperforming all competitors.
• Native OEV Capture: Traditional oracles have leaked over $2 billion in OEV to MEV bots. Atom captures liquidation value through sealed auctions and returns it to the protocol.
• Atomic Transactions: Price updates, liquidations, and OEV payments are settled in a single transaction in FastLane's Atlas in approximately 300 milliseconds.
• No Integration Work Required: Atom activates instantly on any RedStone data source, on any chain, without requiring code changes.

RedStone Atom Makes Lending More Powerful

Atom is a complete reinvention of oracle technology, solving the core problems of DeFi's most commonly used oracles.

Most lending protocols rely on so-called push feeds, where price updates are pushed to the chain under pre-set conditions (such as time intervals or price changes reaching a certain percentage).

Once prices are on-chain, DeFi protocols can leverage this data, sometimes triggering liquidations. Faster oracle updates allow lending protocols to adopt more aggressive risk parameters, increasing the amount of collateral available for borrowing, making them more attractive to DeFi users. If updates are slow or delayed, risk parameters must be more conservative to prevent the protocol from incurring bad debts.

Due to the gas consumption required to push new prices on-chain, traditional push-based data feeds typically update infrequently, sacrificing granularity at the expense of sustainability. This becomes a limiting factor for lending protocols: blockchain oracles update at their own pace, not when the protocol needs them.

RedStone Atom is the first to enable a push-based data feed that updates instantly when the protocol needs it.

Leveraging innovative application-specific ordering technology, RedStone Atom upgrades the RedStone data feed, allowing anyone to access the new price as soon as it triggers a liquidation, achieving zero-latency price updates.

In lending, whoever liquidates first wins. With RedStone Atom, DeFi protocols can complete liquidations faster and more efficiently than their competitors. This, in turn, increases LTV ratios, delivering higher returns and value to users. Lending protocols using RedStone Atom will outperform competitors using traditional push-based data feeds.

The $500 Million Problem: OEV and the Shortcomings of Traditional Oracles

Since the first push-based data feed was deployed on the Ethereum mainnet, Oracle Extractable Value (OEV) has been a significant vulnerability in blockchain oracles. OEV is extremely difficult to quantify, but conservative estimates place total OEV losses at over $500 million. For AAVE v2 and v3 on the Ethereum mainnet alone, OEV losses could exceed $300 million. When blockchain oracles push prices on-chain, triggering liquidations in lending protocols, potential OEV is generated. To incentivize security and ensure timely liquidation before positions become bad, lending protocols reward liquidators with "liquidation bonuses," sometimes exceeding 10% of the liquidation amount. Because these liquidations represent risk-free profits for liquidators, competition is fierce, leading to the majority of bonuses being used as priority fees, effectively costing the protocols themselves a significant price in the process of sacrificing their security. In 2024, the first products attempting to capture OEV launched, but none achieved widespread adoption or captured significant amounts of OEV. Existing OEV solutions are simple tools that capture OEV without improving the underlying oracle infrastructure. They can even exacerbate the situation by introducing settlement delays or relying on hard-to-scaling off-chain infrastructure. Many solutions also require developers to undertake time-consuming and risky protocol upgrades, making integration into existing mainstream markets difficult.

RedStone identified four key criteria when developing its OEV solution:

• There should be no settlement delays, and settlements should even be accelerated (Atom achieves this).
• Should not introduce additional security risks or trust assumptions.
• Should be easily scalable to any EVM chain.
• Should have a high capture rate, capturing over 90% of liquidations in the integrated market.

Atom OEV Auctions Implemented by FastLane

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RedStone Atom meets all criteria and further advances the OEV concept through innovative application-specific sequencing technology.

In Atom, the RedStone data source leverages FastLane's Atlas to conduct Atom OEV auctions.

FastLane feeds the new RedStone price into an off-chain auction, which lasts less than 300 milliseconds. During this time, liquidators bid for the liquidation bonus.

After each auction, FastLane submits bids to the Atlas smart contract in order of bid submission. The Atlas smart contract then atomically updates the data feed and settles the auction, determining the highest bid on-chain. When a liquidator bids in the auction, Atlas bundles three operations into a single atomic transaction:

• Pushes the new signed oracle price
• Executes liquidation
• Transfers the winning bid to the designated recipient

Because all three operations are settled within the same block, the oracle update and liquidation are inseparable and atomic. No other transaction can preempt liquidation, and no transaction will miss liquidation due to protocol delays.

Once the off-chain price makes a position liquidable, Atlas initiates a millisecond-by-millisecond sealed-window auction, where liquidators (or any solver) bid for exclusive liquidation rights. If a bid is rolled back, a try/catch loop within Atlas immediately switches to the next solver.

The protocol receives the majority of the liquidation bonus as revenue, while the winner keeps the remainder. If the auction fails to generate a valid bid, the RedStone relay node pushes the price like a standard contract, and the protocol continues as normal. If Atlas fails to liquidate on-chain, the price update is immediately available to everyone, allowing anyone to liquidate using the standard method.

In the event of an anomalous path, everything falls back to the proven standard process; in the ideal path, liquidation occurs with zero latency, and the OEV is captured by the protocol.

Integrating RedStone Atom

Atom requires no technical integration. It's an upgrade that can be natively enabled on any RedStone price feed, on any chain. Once enabled, Atom will bring zero-latency liquidations and OEV capture to all protocols using that price feed. Protocols don't even need to change the data source contract address.

To enable Atom, simply:

· Request to RedStone to enable Atom on the data source used by the protocol

· Provide an address to receive OEV

RedStone will deploy the Atlas contract on the designated chain and notify the team once the Atom upgrade is live.

A New Era in Blockchain Oracle Technology

Atom, first launched on Unichain, represents a significant leap forward in oracle technology. Currently, there are few substantive differences between blockchain oracle products. Beyond their security record, the ETH/USD price feed on the same chain is virtually indistinguishable. Atom changes all that.

Lending protocols that adopt the Atom-powered data source will be able to outperform competitors with more aggressive risk parameters and deliver higher returns to users. This will make the RedStone data source the preferred choice for all lending protocols.

Other blockchain oracles cannot replicate RedStone Atom. Even if similar technology were to be implemented, a monolithic design wouldn't be able to natively integrate with Atom's modular architecture the way Atom does.

In addition, RedStone and FastLane Labs will retain a portion of the OEV captured by Atom. These funds will be funneled to publicly declared addresses on-chain for future development of the protocol and ecosystem.

To learn more about RedStone Atom, watch our presentation at ETHCC 2025:

1. RedStone Co-founder Marcin Kazmierczak: https://www.youtube.com/watch?v=dQxkAPp3z9Y

2. RedStone Atom Lead Mike Massari: https://youtu.be/M1YFKQZ55UM

About FastLane

FastLane has extensive experience in the MEV space, having operated validator block auctions on Polygon PoS for many years, with approximately 75% of stake currently connected. Their latest collaboration with RedStone focuses on building a permissionless execution platform for lending protocols, providing the infrastructure and mechanisms for RedStone's data feeds and increasing the leverage that DeFi protocols can securely offer.

About RedStone

RedStone is a modular blockchain oracle optimized for DeFi and on-chain finance, focusing on yield-generating assets such as value-added stablecoins, Liquidity Staking Tokens (LSTs), and Restaking Tokens (LRTs). It provides secure, reliable, and customizable data sources on more than 110 chains and is trusted by more than 170 customers, including leading protocols such as Securitize, Ethena, Morpho, Drift, Compound, ether.fi, Lombard, etc.