30s Summary

RedStone Oracles has introduced a new Bitcoin staking feature that allows Bitcoin owners to earn liquid staking tokens (LSTs), such as Lombard Staked BTC (LBTC), on the Ethereum blockchain. This marks the first time Bitcoin-tied LSTs can be used in decentralized finance (DeFi) for purposes like lending. Previously, Bitcoin LSTs could only be used for liquidity on decentralized exchanges, but with Bitcoin staking oracles, the tokens gain greater versatility. RedStone Oracles recently raised $15 million in a funding round led by Arrington Capital.

Full Article

RedStone Oracles, known for providing data to smart contracts, has launched a new feature for Bitcoin staking. This new feature allows people to put their Bitcoin (BTC) in, in return for Bitcoin-based liquid staking tokens (LSTs) like Lombard Staked BTC (LBTC) on the Ethereum blockchain.

According to Marcin Kaźmierczak, one of the people who started RedStone, this is the first time liquid staking tokens tied to Bitcoin can be used in decentralized finance, commonly known as DeFi, for things like lending.

Now, let’s break down some crypto jargon here. “Oracles” in blockchain are services that verify real-world data on the blockchain, acting as a link between what happens off the blockchain and what’s recorded on it. Oracles are crucial in many DeFi programs, including lending, where folks can borrow using their crypto, and staking – which is like rewarding people for keeping their crypto locked in smart contracts.

Staking, where individuals are rewarded for holding onto their crypto, is becoming a big thing in the world of smart contracts. This new feature launched by RedStone brings the concept of staking to Bitcoin holders, allowing them to enjoy benefits previously limited to other tokens.

Kaźmierczak explains that with RedStone’s Bitcoin staking feature, users can treat Bitcoin LSTs, including LBTC, similar to other staking tokens. Users can use LBTC in DeFi lending platforms like Morpho and Compound or on Gearbox Protocol to generate leverage.

Before, without oracles, these Bitcoin LSTs could only be used to provide liquidity on decentralized exchanges. With the introduction of Bitcoin staking oracles, though, these tokens become much more versatile. It’s a development that Kaźmierczak believes could speed up adoption of the DeFi ecosystem around Bitcoin LSTs.

In other news, RedStone Oracles raised $15 million in funding a few months ago in a round led by major crypto investment firm Arrington Capital.

Source: Cointelegraph