RedStone Oracles Review
After conducting a review of RedStone Oracles, OpenZeppelin can confirm that the fundamental architecture of the RedStone Classic system is robust and should reliably deliver accurate price feeds, provided specific conditions and trust assumptions are met:
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Maintaining the diversity of RedStone Oracle Nodes is crucial to ensure that price aggregation remains decentralized, without oversight from any centralized authority. An adequate count of nodes is essential for the system’s integrity. As stated by the RedStone team, there are currently more than 30 active independent nodes being run by two other entities beyond RedStone themselves. This number does not seem enough to confirm the security of the system but RedStone actively onboards new operators and an expansion in the number of nodes would definitely increase the system’s decentralization and improve overall trust in its performance.
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The data availability layer, which utilizes RedStone gateways, Streamr gateways, and the Arweave network for previous data, should remain operational and accessible to the network for data retrieval.
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There should be at least one consistent relayer available to refresh the correct price whenever there is a significant price fluctuation beyond a predetermined threshold or when the price remains unchanged for an extended duration. RedStone maintains a network of main and fallback relayers. As a third redundancy layer, it also utilises the relaying services of Gelato. The relayer does not need to be a trusted actor as the prices are delivered as signed data.
Should the above mentioned criteria be kept, the oracle network’s current configuration is expected to uphold both price liveness and price accuracy.
The classic model of RedStone Oracles incorporates the AggregatorV3Interface from Chainlink, facilitating straightforward integration with various protocols.
Concerning the final trust assumption noted, even in scenarios where relayers are unsuccessful in timely or accurately relaying price feeds, or if they encounter challenges in the future, the Compound community has the option to operate its own relayers. This action could effectively ensure accurate and timely delivery of price feeds.
It is important to acknowledge that, while the RedStone price feed may operate correctly and deliver accurate prices consistently, the inclusion of ETHx as a collateral token in Compound V3 requires a separate analysis on its own.