Crypto currency world is abuzz with a $500 million deal made today. The development is related to altcoin Ether.fi. Ether.Fi will allocate $500 million to help ensure the security of data oracles used to transfer information between RedStone’s Blockchain and the outside world, as part of the deal with RedStone.
What’s in the Details of the $500 Million Deal?
RedStone Oracles, which provides data flows for blockchains, is part of a growing group of “actively verified services (AVS)” that are awaiting to benefit from the restaking protocol EigenLayer, which allows new networks to borrow the security of Ethereum.
On Friday, RedStone announced it had signed a $500 million deal with Ether.Fi, the largest liquidity restaking service on EigenLayer, to help strengthen the oracle protocol.
Earlier this week, EigenLayer deployed a limited version of its service to Ethereum‘s mainnet and secured over $12 billion in user deposits. Most of these deposits come from restaking intermediaries like Ether.Fi, which aim to make the deposit process easier and more profitable for end-users.
As part of the deal with RedStone, Ether.fi will allocate $500 million to help ensure the security of data oracles used for transferring information between blockchains and the external world.
A Total of $15 Billion in Deposits Collected
Redstone is not the first AVS to strike a deal with Ether.fi. A similar agreement was announced in March when Ether.Fi committed $600 million of its stake to Omni, a network of AVS designed to help Layer-2 rollups communicate with each other.
EigenLayer has collected deposits totaling over $15 billion. However, the live version on Ethereum’s mainnet still lacks several key features. So far, the only AVS allowed to be deployed on the network has been EigenDA, a data availability service from Eigen Labs, the team behind EigenLayer.
AVS networks like Redstone Oracles are allowed to “register” with EigenLayer, but according to Eigen Labs’ estimates, they will not be allowed to deploy their service until the end of the year. Following this development, when we look at the price of Ether.fi listed on Binance, we see that the price has not been much affected by this news. At the time of writing, the crypto currency ETHFI is trading at $5.15.
