RedStone, the third-biggest oracle in crypto after Chainlink and Chronicle, has acquired Credora, an on-chain credit rating company backed by Coinbase and S&P Global.
The combined entity will introduce the industry’s first oracle-powered risk rating framework for asset and yield strategies, providing DeFi platforms with real-time pricing and risk data.
RedStone notes that there is a need for rated DeFi strategies as the industry lacks a good method to measure and communicate protocol risk. Most notably, this deal will fill the gap created by traditional rating agencies, which have been slow to embrace blockchain technology.
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Credora solves this problem by assessing collateral assets, their governance, liquidity, volatility, and market parameters. In a statement, Marcin Kazmierczak, RedStone’s founder, said:
“Ratings are a natural extension of our services: we gather and deliver data on-chain, and transparent ratings transform it into actionable intelligence. As DeFi yield strategies grow more complex, users need a simple way to navigate beyond headline APYs. Ratings provide that clarity. This is a foundational step towards making DeFi safer and ready for institutional scale.”
Darshan Vaidya, Credora’s founder said:
“Joining forces with RedStone allows us to scale this mission globally, and is a natural fit for us to be able to build a more robust and usable DeFi for institutions and individuals alike.”
RedStone has been one of the fastest-growing players in the crypto industry. It has climbed up the ladder and became the third-biggest Oracle provider with a total value secured (TVS) of $7.35 billion. It has overtaken other popular players like Pyth, Edge, and Band Protocol.
RedStone provides its solutions to some popular players in the crypto industry, like Venus Core Pool, SparkLend, Avalon USDa, HyperLend Protocol, and Hyperbeat.
RedStone’s RED token was trading at $0.4280 after the Credora buyout, with its fully diluted valuation (FDV) rising to $427 million.
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