Redstone Debuts Oracle for Instant DeFi Liquidations and MEV Capture

Redstone has launched Atom, an oracle designed to enable real-time liquidations and capture miner-extractable value (MEV) for decentralized finance (DeFi) lending protocols.

Redstone Debuts MEV-Capturing Oracle for Lending Protocols

The system, Redstone said, addresses delays in traditional “push” oracles, which update prices at fixed intervals or after predefined deviations. During market volatility, these delays cause missed liquidations and lost revenue, often forcing protocols to adopt inefficient risk parameters like lower loan-to-value ratios. Atom allows liquidators to trigger instant onchain price updates when opportunities emerge.

Atom captures MEV—valued at over $500 million historically in DeFi—at the oracle layer. Normally, this value is seized by validators or block builders during liquidation races. Atom routes it directly back to protocols instead. Recovered MEV can fund protocol incentives, supplier yield boosts, or reduced borrower fees.

Powered by Fastlane Labs’ Atlas sequencer, Atom runs sub-300-millisecond atomic MEV auctions. When a liquidation condition is detected, bidders compete for exclusive execution rights. The winning bid settles simultaneously with the price update.

“Protocols can now decide how liquidation value is shared,” said Redstone co-founder Marcin Kazmierczak. The solution requires no protocol code changes or off-chain components.

Currently live on Unichain, Atom supports BNB Chain, Base, HyperEVM, and Berachain. Redstone provides price feeds across 110+ chains, securing $8.5 billion in total value locked for clients like Compound and Morpho.

The oracle marks an infrastructure shift toward embedded MEV capture, potentially improving capital efficiency and sustainability in onchain lending markets.