Grandly launched RedStone Atom: Equipped with a clearing intelligence lending enhancement engine

RedStone is proud to announce a major breakthrough in Oracle Machine technology: RedStone Atom - the first Oracle Machine with settlement intelligence.

Unlike traditional Oracle Machines, RedStone Atom is the first solution that can actively enhance the efficiency of lending protocols. It introduces zero-latency Oracle Machine updates, allowing protocols to settle positions more quickly, improve Loan To Value ratios, and deliver better risk-adjusted returns than competitors.

Atom will also dynamically capture the Oracle Extractable Value (OEV) when putting the price on-chain, and return the value to the protocol, which can be used as revenue, enhance user yields, or reduce borrowing costs.

Atom is driven by the innovative Application Specific Sequencing technology from FastLane Labs, which does not introduce clearing delays or additional security assumptions.

RedStone Atom can be enabled on any RedStone data source and any chain without code changes or engineering investment.

Atom has been launched on Unichain, providing security for Compound Finance, Morpho, Venus Protocol, and Upshift, and can be integrated into BNB Chain, Base, Berachain—soon to be available on Ethereum, HyperEVM, Arbitrum, etc. To enable Atom on any RedStone data source, please contact the RedStone team.

Summary of key points:

Lending protocol performance enhancement: Atom turns the Oracle Machine into a performance engine. Instant settlement unlocks higher LTV and better yields, bringing measurable competitive advantages to the protocol.

Zero-Latency Settlement: Atom instantly updates prices when they can be settled, unlocking stricter risk parameters, leading all competitors.

Native OEV capture: Traditional Oracle Machines have leaked over $2 billion in OEV to MEV bots. Atom captures liquidation value through sealed auctions and returns it to the protocol.

Atomic-level transactions: Price updates, settlements, and OEV payments are settled in approximately 300 milliseconds per transaction in FastLane’s Atlas.

No integration work required: Atom can be instantly activated on any RedStone data source and any chain without code changes.

RedStone Atom makes lending more powerful

“RedStone Atom is a fundamental revolution in the field of Oracle Machines - it is designed for protocols rather than built around them. Atom gives lending protocols an unfair advantage in the race for the best yields while also addressing the long-standing hundreds of millions of dollars OEV efficiency issue in DeFi. In short, Atom is the super engine for DeFi lending, tailored specifically for the protocols.”

——RedStone Co-founder Marcin Kazmierczak

Atom is a complete reimagining of Oracle Machine technology, addressing the core issues of the most commonly used oracles in DeFi.

Most lending protocols rely on so-called push data sources, which push price updates to the chain under preset conditions (such as time intervals or price changes reaching a certain percentage).

Once the price is on-chain, DeFi protocols can utilize this data, sometimes triggering liquidations. Faster Oracle Machine updates allow lending protocols to adopt more aggressive risk parameters, increasing the collateralized lending limits, making it more attractive to DeFi users. If updates are slow or delayed, the risk parameters must be more conservative to prevent the protocol from incurring bad debts.

Due to the gas consumption required for pushing new prices on-chain, traditional push-based data sources usually have a lower update frequency, sacrificing the precision of price updates at the cost of sustainability. This has become a limiting factor for lending protocols: blockchain Oracle Machines update at their own pace, rather than when the protocol needs them to.

RedStone Atom has achieved a push-style data source that updates instantly when the protocol requires it for the first time.

With the innovative application-specific sorting technology, RedStone Atom has upgraded the RedStone data source. As long as the new price can trigger a liquidation, anyone can call the update to achieve zero-latency price updates.

In the lending space, the first to liquidate wins. With RedStone Atom, DeFi protocols can execute liquidations faster and more efficiently than their competitors. This, in turn, can improve the LTV ratio, bringing higher returns and value to users. Lending protocols that adopt RedStone Atom will surpass competitors that use traditional push-based data sources.

The 500 million dollar dilemma: the shortcomings of OEV and traditional Oracle Machines.

Since the deployment of the first push data source on the Ethereum mainnet, Oracle Extractable Value (OEV) has been a significant vulnerability for blockchain Oracle Machines. OEV is extremely difficult to quantify, but conservatively estimated total losses from OEV have exceeded $500 million. Just for AAVE v2 and v3 on the Ethereum mainnet, OEV losses could exceed $300 million.

When the blockchain Oracle Machine pushes the price on-chain and triggers the liquidation of the lending agreement, potential OEV will be generated. To incentivize security and ensure timely liquidation before positions turn into bad debts, the lending agreement rewards liquidators with a ‘liquidation bonus’, sometimes exceeding 10% of the liquidation amount. Since these liquidations represent risk-free profits for liquidators, competition is exceptionally fierce, leading to most of the bonuses being used as priority fees, effectively costing the protocol a high price for its own security.

In 2024, the first products attempting to capture OEV were launched, but none were able to achieve large-scale application or capture significant amounts of OEV. Existing OEV solutions are merely simple tools that capture OEV without improving the underlying Oracle Machine infrastructure, and in fact, the situation is worsened by introducing settlement delays or relying on hard-to-scale off-chain infrastructure. Many solutions also require developers to undertake time-consuming and risky protocol upgrades, making integration into the existing mainstream market challenging.

RedStone proposed four key criteria when developing the OEV solution:

There should be no clearing delays, and the clearing speed should even be accelerated (Atom has achieved this).

Additional security risks or trust assumptions should not be introduced.

Should be able to easily scale to any EVM chain.

It should have a high capture rate, capable of capturing over 90% of the clearing in the integrated market.

FastLane’s Atom OEV auction

RedStone Atom meets all standards and enhances the OEV concept through innovative Application Specific Sequencing technology (.

In Atom, the RedStone data source utilizes FastLane’s Atlas for Atom OEV auctions.

FastLane brings the new RedStone price stream into off-chain auctions, which last for less than 300 milliseconds. During this time, liquidators bid to compete for the liquidation bonus.

After each auction ends, FastLane submits the bids to the Atlas smart contract in the order of the bids. The Atlas smart contract then atomically updates the data source and settles the auction, determining the highest bid on-chain. When there is a liquidator’s bid in the auction, Atlas will bundle three operations into a single atomic transaction:

Push new signature Oracle Machine price

Execute liquidation

Transfer the winning amount to the designated recipient.

Since the three operations are settled within the same block, the Oracle Machine updates and settlements are inseparable and atomic. There is no other transaction that can preemptively settle, and settlements will not be missed due to protocol delays.

Once the off-chain price makes a position eligible for liquidation, Atlas will initiate a millisecond-sealed window auction, where the liquidator (or any resolver) bids for exclusive liquidation rights. If a bid rolls back, the internal try/catch in Atlas will immediately switch to the next resolver.

The protocol receives most of the liquidation bonus as income, while the winner retains the remaining portion. If the auction does not generate valid bids, the RedStone relay nodes will push the price like a standard contract, and the protocol will operate as usual. If the Atlas liquidation chain fails, the price updates will be immediately open to everyone, and anyone can liquidate in the standard manner.

Under the abnormal path, everything falls back to the verified standard process; under the ideal path, the liquidation has zero delay, and the OEV is captured by the protocol.

“Fastlane is committed to building a leveraged minting factory for DeFi - a real-time, optimized liquidation risk engine. RedStone Atom not only brings better outcomes for users and protocols but also brings the forefront of crypto innovation back on-chain.”

——FastLane Founder Alex Watts

Integrate RedStone Atom

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

To enable Atom, simply:

Apply to RedStone to enable Atom on the data source used in the protocol.

Provide an address to receive OEV.

RedStone will deploy the Atlas contract on the specified chain and notify the team after the Atom upgrade is launched.

The New Era of Blockchain Oracle Machine Technology

Atom was first launched on Unichain and represents a significant leap in Oracle Machine technology. Nowadays, there are almost no substantial differences between blockchain Oracle Machine products; apart from security records, the ETH/USD price sources on the same chain are nearly indistinguishable. Atom changed all of that.

By adopting the Atom upgraded data source lending protocol, it will be able to surpass competitors with more aggressive risk parameters, bringing higher returns to users. This will make the RedStone data source the preferred choice for all lending protocols.

Other blockchain Oracle Machines cannot replicate RedStone Atom. Even if they attempt to implement similar technology, a monolithic design cannot be natively integrated like Atom and the RedStone modular architecture.

In addition, RedStone and FastLane Labs will retain a portion of the OEV captured by Atom, and these funds will be deposited into the publicly declared on-chain address for the future development of the protocol and ecosystem.

To learn more about RedStone Atom, you can watch our presentation at ETHcc 2025:

RedStone co-founder Marcin Kazmierczak:

RedStone Atom Head Mike Massari:

About FastLane

Fastlane has extensive experience in the MEV field, operating validator block auctions on Polygon PoS for many years, with about 75% of the staking now connected. The latest collaboration with RedStone focuses on building a permissionless execution platform for lending protocols, providing infrastructure and mechanisms for RedStone data sources, enhancing the leverage that DeFi protocols can safely offer.

About RedStone

RedStone is a modular blockchain Oracle Machine optimized for DeFi and on-chain finance, focusing on yield-generating assets such as appreciating stablecoins, liquid staking tokens (LSTs), and re-staking tokens (LRTs). It provides secure, reliable, and customizable data sources across more than 110 chains and has been trusted by over 170 clients, including leading protocols like Securitize, Ethena, Morpho, Drift, Compound, ether.fi, and Lombard.