Blockchain oracle network RedStone has been appointed the official oracle provider for the Ink ecosystem after a rapid emergency deployment during a security incident affecting Tydro, a key lending protocol on the Kraken-incubated layer 2 network.
According to a May 15 statement, on May 4, Tydro paused all markets after its then-oracle provider, Chaos Labs, was affected by a sophisticated attack. No incorrect onchain pricing occurred and no user funds were impacted, but the event underscored the need for stronger oracle resilience.
RedStone got the call. Within 48 hours, the team had production-ready price feeds running on Ink and had cleared Tydro’s full security review. Following its swift response, the project secured a long-term partnership in the Ink ecosystem.
Ink’s rapid growth
When Kraken launched its layer 2 network in December 2024, it had under $1 million in total value locked during its first month.
That figure has since surged to over $270 million, an increase of roughly 26,900% driven by both appetite for exchange-linked DeFi and Kraken’s large user base, per DefiLlama. Tydro has accumulated about $205 million in TVL.
Ink is onboarding over 10 million exchange users into onchain finance through DeFi applications and tokenized assets. As the ecosystem expands, demand is increasing for oracle infrastructure capable of supporting both major crypto markets and newer asset categories requiring faster iteration and broader coverage.
RedStone co-founder Marcin Kazmierczak noted that the recent incident proved the importance of fast, secure infrastructure response.
“Ink is building toward a much broader onchain economy – tokenized assets, exchange-native products, entirely new market categories – that requires oracle infrastructure built for flexibility as much as scale. We’re excited to help power that next phase of growth,” Kazmierczak said.
How RedStone works inside Tydro
Under the agreement, RedStone will support Tydro’s new and expanding markets and provide oracle coverage across the wider Ink ecosystem, including lending protocols, risk infrastructure, and Kraken-native tokenized assets.
In Tydro’s architecture, RedStone operates alongside Chainlink on core markets for price verification, while serving as the primary oracle for isolated and tokenized markets. Its Atom OEV product captures liquidation MEV, and a partnership with Credora enables institutional-grade risk frameworks onchain.
“Tydro required an oracle partner that could move extremely quickly without compromising on security standards,” the Tydro Service Providers stated. “RedStone demonstrated that during a critical moment for the ecosystem. As the protocol expands into more diverse markets and assets, flexible oracle infrastructure becomes increasingly important.”
Beyond Tydro, RedStone is expanding across the Ink ecosystem, including integrations with Nado and Kraken-native products such as xStocks. The protocol currently serves more than 200 applications with a track record of zero mispricing events.
Blockchain oracle market projected to surpass $10 billion by 2033
The global blockchain oracle market reached approximately $1.4 billion in 2024 and is projected to expand to over $10 billion by 2033, representing a projected compound annual growth rate of 23.7%, according to data from Dataintelo.
The growth outlook reflects the increasing importance of secure, real-time external data within blockchain ecosystems, particularly as decentralized finance and smart contract adoption continue to scale globally.
Blockchain oracles function as bridges between blockchain networks and off-chain data sources, enabling smart contracts to access information. This capability has become foundational for decentralized applications in finance, insurance, supply chain management, gaming, and enterprise automation.
As blockchain adoption broadens, the demand for secure and tamper-resistant oracle infrastructure is accelerating.
