RedStone vs API3: Chain Portability

Modular, multi-chain push model: Data is signed off-chain and streamed via a custom data availability layer, then pulled on-chain via a lightweight relayer. This enables instant, low-cost deployment to any EVM or non-EVM chain (e.g., zkSync, Starknet, Solana) without native oracle contracts. Ideal for rapid prototyping and deploying on emerging L2s.

Pay-for-what-you-use gas model: Users pay gas only for the data they request on-chain, not for continuous on-chain updates. This leads to ~90% lower operational costs for dApps with sporadic data needs (e.g., lending liquidations, periodic settlements). Trade-off: introduces minor latency for the on-chain pull transaction.

dAPI architecture with Airnode: Data is served directly from first-party providers (e.g., CoinGecko, Brave New Coin) to on-chain, chain-native smart contracts. This provides stronger security guarantees and data provenance as there's no intermediary aggregator. Best for high-value DeFi protocols on established chains like Ethereum, Arbitrum, or Polygon that prioritize security over chain count.

Fully on-chain, verifiable data points: dAPIs are standard smart contracts on each chain, making them natively composable with other DeFi legos (e.g., Aave, Compound). Updates are pushed on-chain at regular intervals, providing predictable latency. This model is optimal for perpetual DEXs, money markets, and options protocols requiring seamless, trust-minimized integration.

Minimal permanent on-chain storage: Only a tiny signature and timestamp are stored on-chain per data pull, with the bulk of data stored on Arweave. This results in ~80-90% lower gas costs for frequent updates compared to traditional push oracles. A major advantage for high-frequency DeFi applications on high-throughput L2s like Starknet or Optimism.

Requires individual dAPI deployment per chain: Each supported blockchain (Ethereum, Avalanche, etc.) needs its own set of proxy contracts for each data feed. This creates higher initial setup cost and maintenance overhead for full multi-chain coverage. Best suited for protocols with a stable, long-term presence on a select few high-value chains where the cost of robust, chain-native feeds is justified.

Instant compatibility with new rollups and appchains: The pull-based, meta-transaction model requires only a light client verifier, not a full oracle network deployment. This allows projects on emerging chains like Morph, Monad, or Berachain to integrate price feeds in days, not months. Critical for teams in fast-moving, multi-chain testnet phases.

On-chain, verifiable decentralization proofs: dAPI operations and provider staking are transparently recorded on-chain. The security model is chain-native and auditable, with slashing for misbehavior. This provides stronger guarantees for high-value, low-latency applications on established DeFi hubs like Arbitrum or Avalanche, where oracle manipulation risk is a primary concern.

Direct data source integration: dAPIs are composed of first-party data feeds run directly by the data providers (e.g., Amberdata, Kaiko). This eliminates intermediary layers, reducing trust assumptions and potential attack vectors. This matters for high-value DeFi protocols where oracle manipulation risk must be minimized.

Decentralized management: The API3 DAO governs dAPI updates, parameters, and revenue distribution. Data providers stake API3 tokens as collateral, creating cryptoeconomic security. This matters for protocols seeking permissionless, community-aligned oracle infrastructure that evolves without centralized control.

Modular data placement: RedStone uses a pull-based model where data is stored in a decentralized cache (like Arweave) and attached to transactions via signed meta-transactions. This drastically reduces on-chain gas costs and storage. This matters for high-throughput, cost-sensitive applications on L2s and new chains where every byte counts.

Chain-agnostic design: RedStone's core logic is off-chain, requiring only a lightweight on-chain connector (Relayer) for verification. This allows deployment to 50+ EVM and non-EVM chains (including Fuel, Starknet, Solana) in days, not months. This matters for protocols launching on emerging ecosystems that need price feeds immediately.

Sponsored data feeds: API3's dAPIs can be configured to sponsor the gas costs for updating their own on-chain data. This removes a major operational burden and cost from dApp developers. This matters for improving user experience and simplifying the economic model for applications with high update frequency needs.

Flexible data sourcing: Developers can easily create custom data feeds by combining multiple sources (e.g., BTC price * ETH price) using RedStone's oracle core. The signed data packets are composable across DeFi. This matters for exotic derivatives, indexes, and structured products that require bespoke data inputs not available in standard feeds.