RedStone and Cap Increase Efficiency of Stablecoins on Ethereum
It’s been over a week since launch and the progress of Cap has been nothing short of astounding. We have over $70 million in deposits and growing and our mints have happened without a breeze.
A partner we want to highlight who has been essential to our success is RedStone who is one of oracle providers onchain today. Not only did they build our oracle from scratch, but the oracle itself has resulted in an 80% reduction in fees for users minting cUSD.
By cooperating with RedStone, Cap offers you more cUSD on every mint transaction.
What is RedStone
RedStone is a next‑generation, modular oracle provider that delivers fast, secure, and cost‑effective cross‑chain data feeds to the onchain world. Since their mainnet launch in early 2023, RedStone has become one of the fastest‑growing oracle services in DeFi. In 2024, its user base surged by 500%, and Total Value Secured (TVS) jumped from roughly $110 million to over $10 billion today.
How RedStone Saves Cap Users Fees
Because Cap prices all collateral assets as cUSD is minted, a minting fee is required to account for potential oracle fluctuations within update thresholds. With its previous oracle implementation, Cap had to charge a 0.50% minting fee. With Redstone’s faster updates, Cap reduced this fee to 0.10%. This reduction in the minting fee adds up for users and creates significant savings.
Conclusion
Cap and RedStone are both on the cutting edge of innovation in their domains and nothing exemplifies that more than with this deviation protection collaboration. And as both of us keep pushing the boundaries of what is possible onchain, at the end of the day, its users the benefit the most by having the lowest fees while still interacting with protocols in a sovereign manner.
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