What happened?
RedStone has launched its Atom oracle, a groundbreaking tool for DeFi lending protocols that allows for real-time liquidations and automated native MEV (Miner Extractable Value) capture. This new oracle, described as having “native liquidation intelligence,” is the first of its kind designed to enhance the efficiency and security of lending markets. By embedding MEV capture in the oracle layer, it aims to improve performance, capital efficiency, and sustainability.
Who does this affect?
The launch of the Atom oracle affects DeFi lending protocols and their users, including those on platforms like Unichain, BNB Chain, Base, HyperEVM, and Berachain. The innovation is particularly impactful for validators or block builders who previously competed to liquidate users during oracle lags. These protocols and their users stand to benefit from better risk-adjusted returns, higher loan-to-value ratios, and optimized MEV that would otherwise be lost to third parties.
Why does this matter?
This development is significant for the DeFi market as it introduces a more efficient liquidation model that can save protocols millions in extractable value losses. By enabling zero-latency liquidations and onchain price updates, RedStone’s Atom oracle promises improved yield and reduced fees for users, which can attract more participants and increase the overall liquidity in DeFi markets. Additionally, as onchain lending enters a new competitive phase, this technology allows protocols to offer better incentives and rewards, potentially reshaping the landscape of blockchain-based finance.