Introducing RedStone Atom: The lending enhancement engine powered by liquidation intelligence
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Introducing RedStone Atom: The lending enhancement engine powered by liquidation intelligence
RedStone Atom represents a fundamental transformation in the oracle space—designed for protocols, not built around them.
Navigating Web3 tides with focused insightsRedStone proudly introduces a major breakthrough in oracle technology: RedStone Atom—the first oracle with liquidation intelligence.
Unlike traditional oracles, RedStone Atom is the first solution designed to actively enhance lending protocol efficiency. It introduces zero-latency oracle updates, enabling protocols to liquidate positions faster, achieve higher Loan-to-Value (LTV) ratios, and deliver superior risk-adjusted returns compared to competitors.
Atom also dynamically captures Oracle Extractable Value Oracle Extractable Value (OEV) when posting prices on-chain, returning value to the protocol that can be used as revenue, enhanced user yields, or reduced borrowing fees.
Powered by FastLane Labs' innovative Application-Specific Sequencing technology, Atom introduces no liquidation delays or additional security assumptions.
RedStone Atom can be enabled on any RedStone data feed, on any chain, with no code changes or engineering effort required.
Atom is live on Unichain, securing Compound Finance, Morpho, Venus Protocol, and Upshift, and is integrable on BNB Chain, Base, Berachain—with upcoming availability on Ethereum, HyperEVM, Arbitrum, and more. To enable Atom on any RedStone data feed, contact the RedStone team.
Key highlights:
- Enhanced Lending Protocol Performance: Atom turns the oracle into a performance engine. Instant liquidations unlock higher LTVs and better yields, delivering measurable competitive advantages to protocols.
- Zero-Latency Liquidations: Atom updates prices instantly when a position becomes eligible for liquidation, enabling 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-bid auctions and returns it to the protocol.
- Atomic Transactions: Price updates, liquidations, and OEV payouts settle in single transactions within FastLane’s Atlas, taking approximately 300 milliseconds.
- No Integration Required: Atom can be instantly activated on any RedStone data feed, on any chain, without code changes.
RedStone Atom Makes Lending Stronger
“RedStone Atom represents a fundamental shift in oracle design—built for protocols, not just around them. Atom gives lending protocols an unfair advantage in the race for best yields while solving a long-standing, multi-hundred-million-dollar inefficiency in DeFi OEV. Simply put, Atom is a purpose-built super-engine for DeFi lending.”
——Marcin Kazmierczak, Co-Founder of RedStone
Atom is a complete reimagining of oracle technology, addressing core limitations of the most widely used oracles in DeFi.
Most lending protocols rely on so-called push feeds, where price updates are pushed on-chain under predefined conditions (e.g., time intervals or price movements exceeding a threshold).
Once prices are on-chain, DeFi protocols use this data, sometimes triggering liquidations. Faster oracle updates allow lending protocols to adopt more aggressive risk parameters, increasing borrowable amounts and making them more attractive to users. Slow or delayed updates force conservative risk settings to prevent bad debt.
Since pushing new prices on-chain consumes gas, traditional push feeds often limit update frequency, sacrificing precision for sustainability. This becomes a bottleneck: blockchain oracles update on their own schedule, not when the protocol needs them.
RedStone Atom delivers the first push feed that updates precisely when the protocol demands it.
Leveraging cutting-edge Application-Specific Sequencing, RedStone Atom upgrades RedStone data feeds so anyone can trigger an update whenever a new price would cause a liquidation, achieving zero-latency price updates.
In lending, whoever liquidates first wins. With RedStone Atom, DeFi protocols can liquidate faster and more efficiently than their competitors. This enables higher LTVs, delivering greater yields and value to users. Lending protocols using RedStone Atom will outperform those relying on traditional push feeds.
The $500 Million Problem: OEV and the Failure of Traditional Oracles
Since the first push feed was deployed on Ethereum mainnet, Oracle Extractable Value (OEV) has been a critical vulnerability in blockchain oracles. OEV is difficult to quantify, but conservative estimates place total losses above $500 million. On Ethereum alone, AAVE v2 and v3 may have lost over $300 million to OEV.
OEV arises when an oracle pushes a price on-chain that triggers a liquidation. To incentivize security and ensure prompt liquidation before bad debt occurs, lending protocols reward liquidators with a “liquidation bonus,” sometimes exceeding 10% of the liquidated amount. Because these liquidations represent risk-free profits for liquidators, competition is fierce, driving most of the bonus into priority fees—effectively making protocols pay a high cost for their own security.
In 2024, the first products aimed at capturing OEV emerged, but none achieved widespread adoption or significant OEV capture. Existing OEV solutions are merely tools that capture value without improving the underlying oracle infrastructure, often worsening the situation by introducing liquidation delays or relying on off-chain systems that are hard to scale. Many require time-consuming and risky protocol upgrades, making integration into established markets difficult.
When developing its OEV solution, RedStone set four key criteria:
- No liquidation delays—ideally, liquidations should be faster (which Atom achieves).
- No additional security risks or trust assumptions.
- Easy scalability across all EVM chains.
- High capture rate—recovering over 90% of liquidations in integrated markets.
Atom OEV Auction via FastLane
RedStone Atom meets all these standards and elevates the OEV concept through innovative Application-Specific Sequencing.
In Atom, RedStone data feeds utilize FastLane's Atlas for Atom OEV auctions.
FastLane routes new RedStone prices into off-chain auctions lasting less than 300 milliseconds. During this window, liquidators bid for the right to claim the liquidation bonus.
After each auction, FastLane submits bids in order to the Atlas smart contract. The Atlas contract then atomically updates the data feed and settles the auction, confirming the highest bidder on-chain. When a bid exists, Atlas bundles three operations into one atomic transaction:
- Push the new signed oracle price
- Execute the liquidation
- Transfer the winning bid amount to a designated recipient
Because all three actions settle within the same block, the oracle update and liquidation are inseparable and atomic. No other transaction can front-run the liquidation, and no delay causes missed opportunities.
As soon as an off-chain price makes a position eligible for liquidation, Atlas opens a millisecond-scale sealed-bid auction window. Liquidators (or solvers) compete for exclusive rights to liquidate. If a bid fails, Atlas’s internal try/catch immediately switches to the next solver.
The protocol receives the majority of the liquidation bonus as income, while the winner keeps the remainder. If no valid bid is submitted, RedStone relayers push the price as usual, and the protocol operates normally. If the Atlas liquidation fails on-chain, the price update becomes immediately available to everyone, allowing standard liquidations.
In edge cases, the system gracefully falls back to proven standard flows; in optimal cases, liquidations occur with zero latency and OEV is captured by the protocol.
“Fastlane is building a leverage foundry for DeFi—a real-time, optimized engine for liquidation risk. RedStone Atom not only delivers better outcomes for users and protocols but brings the frontier of crypto innovation back on-chain.”
——Alex Watts, Founder of FastLane
Integrating RedStone Atom
Atom requires no technical integration. It is a native upgrade available on any RedStone price feed, on any chain. Once enabled, Atom delivers zero-latency liquidations and OEV capture to all protocols using that feed. Protocols don’t even need to change their data feed contract address.
To enable Atom:
- Request RedStone to activate Atom on your protocol’s data feed
- Provide an address to receive OEV proceeds
RedStone will deploy the Atlas contract on the specified chain and notify your team once the Atom upgrade is live.
A New Era for Blockchain Oracle Technology
Launched first on Unichain, Atom marks a transformative leap in oracle technology. Today, there is little meaningful differentiation between blockchain oracle products—on the same chain, ETH/USD price feeds differ minimally beyond security track records. Atom changes that.
Lending protocols upgrading their data feeds with Atom will outperform competitors by adopting more aggressive risk parameters, delivering higher yields to users. This makes RedStone data feeds the preferred choice for all lending protocols.
No other blockchain oracle can replicate RedStone Atom. Even attempts to mimic the technology fall short due to monolithic designs unable to natively integrate like Atom within RedStone’s modular architecture.
Additionally, RedStone and FastLane Labs will retain a portion of the OEV captured by Atom, directing these funds to publicly disclosed on-chain addresses to support future protocol and ecosystem development.
To learn more about RedStone Atom, watch our talks at ETHcc 2025:
- RedStone Co-Founder Marcin Kazmierczak: https://www.youtube.com/watch?v=dQxkAPp3z9Y
- RedStone Atom Lead Mike Massari: https://youtu.be/M1YFKQZ55UM
About FastLane
Fastlane brings deep expertise in MEV, having operated validator block auctions on Polygon PoS for years, currently covering around 75% of staked supply. Its latest collaboration with RedStone focuses on building a permissionless execution layer for lending protocols, providing the infrastructure and mechanisms to increase the amount of leverage DeFi protocols can safely offer.
About RedStone
RedStone is a modular blockchain oracle optimized for DeFi and on-chain finance, with a focus on yield-bearing assets such as accrual stablecoins, liquid staking tokens (LSTs), and restaked tokens (LRTs). It delivers secure, reliable, and customizable data feeds across more than 110 chains and is trusted by over 170 customers, including Securitize, Ethena, Morpho, Drift, Compound, ether.fi, Lombard, and other leading protocols.
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