RedStone Oracles, a key provider of data for smart contracts, has introduced staking oracles specifically designed for Bitcoin. This innovation allows users to stake their Bitcoin (BTC) and receive liquid-staking tokens (LSTs) like Lombard Staked BTC (LBTC) on the Ethereum blockchain.
Marcin Kaźmierczak, co-founder and COO of RedStone, explained on Oct. 8 that this is the first time BTC LSTs can be used in decentralized finance (DeFi) for lending and other purposes, rather than just for providing liquidity on decentralized exchanges (DEXs).
What Are Staking Oracles and Why Are They Important?
Blockchain oracles serve as connections between real-world data and blockchains, verifying off-chain data on the blockchain. They are commonly used in many DeFi protocols, enabling users to borrow against their crypto holdings and earn rewards by staking their assets in smart contracts.
Staking is an increasingly popular model in the crypto ecosystem, closely related to oracle networks. Staking oracles gather and verify essential information, such as staking rewards and slashing events, which are crucial for the proper functioning of LSTs like Lido Staked Ether (stETH).
With RedStone’s new Bitcoin staking oracles, users can utilize Bitcoin LSTs, including LBTC, in ways similar to using Lido’s b. For instance, they can leverage LBTC for DeFi lending on platforms like Morpho and Compound, and use the oracles and LBTC on Gearbox Protocol to create composable leverage.
Summary Review: RedStone Oracles has launched innovative Bitcoin staking oracles that allow users to stake their Bitcoin and receive liquid–staking tokens (LSTs), such as Lombard Staked BTC (LBTC), for use in decentralized finance (DeFi). This development marks a significant advancement, enabling BTC LSTs to be utilized in lending and other applications, rather than just for providing liquidity on decentralized exchanges. With the support of Arrington Capital, these staking oracles will help users take full advantage of their Bitcoin holdings, making them more versatile in the growing DeFi landscape.
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