#21 Everyone Wants a Slice of Pyth
This edition details the latest Pyth developments and highlights our wonderful, ever-growing ecosystem of data publishers and users!
About:
The Pyth network is a first-party financial oracle solution that aims to bring valuable market data to the general public. The network does so by incentivizing market participants — trading firms, market makers, and exchanges — to share directly on-chain the price data collected as part of their existing operations. The network then aggregates this first-party price data on-chain and makes it available for use by either on- or off-chain applications. Discover more in our whitepaper or wiki page.
Build with Pyth
Pyth Metrics
The Pyth network, ecosystem, and community continue to scale, and raising the bar for all of us. In this light, today, we want to introduce Pyth Metrics — a way to keep track of all the network’s growth and milestones. We’ve certainly come a long way since the beginning.
As the full Pyth smart contract is deployed (data staking, reward distribution, and governance) and Pyth price feeds become available on new chains, Pyth Metrics will expand in coverage.
This dashboard was created by a Pyth contributor to further provide relevant statistics around the Pyth network, its operations and price feed, as well as its usage by protocols and users.
Pyth Publishers Metrics is a feature that provides insights that will empower developers, publishers, and delegators by providing the historical performance of the network’s data sources. This powerful tool reflects our commitment to transparency and delivering timely, accurate, and valuable first-party data for everyone.
Every month, the Pyth contributors collect informative data points on the network, its growth, and its performance. Tracked data points are the number of data publishers, price feeds, dApps #PoweredByPyth, as well as the total value secured and total trading volume enabled by Pyth feeds.
Paris Hacker House
We saw you in London and Barcelona, but our journey doesn’t stop there. Come meet with the Pyth Contributors at the Paris Hacker House, July 15th - 19th. Join us at Le Dernier Étage for our panel discussion with Mango Markets, Marinade, Raydium, Orca and Xenon!
Summer Reading
Pyth coverage continues to grow and we wanted to share a really insightful post by one of our very own partners. CMS, a core data contributor on Pyth, recently released a blog post dedicated to oracles, their importance within DeFi and the Pyth network moat around data:
In a web3 world where everything is forkable, moats are increasingly hard to come by. Pyth has one of the strongest moats, because of its data providers. As of July 2022, there are over 60 data providers, including traditional HFT firms, crypto native trading firms, various centralized and decentralized exchanges along with traditional equities exchanges. It is important to note how historic this is; competing market participants are actively collaborating together. This data cannot be forked easily and it is precisely the high data quality, along with an innovative aggregation method and staking method that creates such a strong product. The Pyth network creates a powerful economic design that is positive-sum for the entire ecosystem.
Traders Magazine also released an article on a recent US court decision which maintains that one group of US exchange operators shall continue being the primary collector and distributor of core market data. We’re excited to see Pyth become a new alternative source for market data of similar caliber.
The element which was overturned will be a disappointment to users who have complained about the increasing cost of market data which they need to buy to meet regulatory requirements such as evidencing best execution. They claimed this was due to the monopoly power of exchanges such as Nasdaq, NYSE and Cboe Global Markets who had filed the court case. [...] In 2020 the SEC ordered that securities firms and non-exchanges should have a greater say on the management of public data feeds which was upheld by the U.S. Circuit Court of Appeals for the District of Columbia before the decision was overturned this month. However, the situation could evolve even without regulation as upstart decentralized finance (DeFi) challengers, such as the Pyth network, are even challenging the traditional providers in less obvious areas such as market data.”
#PoweredByPyth
Many of your favorite apps are #PoweredByPyth and protected by #ConfidenceIntervals. New projects are also empowering themselves with Pyth data. It’s always a delight to showcase these amazing teams, whether they’re veterans or upstarts.
Mango is a decentralized exchange built on Solana where you can borrow, lend, and swap your crypto assets while trading perpetuals contracts on leverage.
With the help of Pyth, Mango can accurately determine the value of a user’s assets and liabilities and the value of the perpetual market funding rate.
Mango leverages the Pyth confidence interval to prevent users from taking an action when markets begin to diverge and prices are uncertain.
Mango also composes with the Serum CLOB for spot trading and leverages its unique orderbook for perpetual trading.
Confidentia—A Little Secret Between Us, Every Week
Cega is the first DeFi exotic derivatives protocol to offer safer, high-yield vaults for investors to stake their stablecoin.
The protocol leverages Pyth pricing data to determine whether the options trades have knocked-in or knocked-out and to calculate the trade settlement at expiry.
marginfi is an infrastructure layer that creates a unified DeFi trading experience. By leveraging a global margin account, positions that are locked on different protocols can be cross margined against each other.
marginfi uses Pyth indirectly through integrated trading protocols but will use Pyth to robustly track prices for supported collateral types (even USDC and other stablecoins!) as well as additional data points that may be integrated into marginfi’s lending and risk architecture.
marginfi Twitter Space (11/07)
Pythiad—Deep Dives with #PoweredByPyth Teams
The Pythiad is a new interview series and personal look into the talented teams building with Pyth.
Katana is building the yield generation layer for DeFi. They offer a comprehensive suite of yield products across the spectrum of risk, enabling users to access the best risk-adjusted yields in DeFi from a single platform.
Pyth assists Katana in price settlement at the end of its vaults’ auction periods. More specifically, Katana’s DOVs are built on the Zeta Markets FLEX stack, which incorporates Pyth’s price feeds to automatically settle options contracts.
HXRO Network is a fully composable, on-chain derivatives primitive that provides core exchange, risk, and settlement infrastructure for professional-grade financial applications.
Hxro leverages Pyth’s market data oracle and confidence intervals as an input in Hxro’s customized risk engine, Spandex. HXRO is also implementing Pyth data as an input for determining a price curve and volatility surface for its vanilla options market (which will be released later this year). Lastly, HXRO will also be incorporating Pyth market data as a price and settlement oracle in its on-chain parimutuel markets.
Pyth Publishers
New Publishers
Onboarding more publishers is critical! Pyth seeks to cover all of your favorite symbols and asset classes. To make this possible, we need diverse publishers who can support these asset types.
Gemini was founded in 2014, by brothers Cameron and Tyler Winklevoss, to unlock the next era of financial, creative, and personal freedom.
Gemini is a New York trust company that is held to the highest level of fiduciary obligations, capital reserve requirements, and banking compliance standards. With hundreds of employees worldwide, the company has offices in the United States, the United Kingdom, Ireland, and Singapore.
In November 2021, Gemini raised a $400 million round led by Morgan Creek Digital, valued at $7.1 billion
Who’s #PoweringPyth now? You can keep track on our website. If you own proprietary data yourself, we welcome you to join the Pyth mission.
We can’t wait to hear what you think! Feel free to join the Pyth Discord, follow Pyth on Twitter, and join the Telegram to learn more and ask any questions. Take fate into your own hands.