#24 Pythian Oasis
What’s new in the Pyth ecosystem? Catch the latest on the #PoweredByPyth community — Friktion, Zeta Markets, Port Finance, Dual Finance, Snowflake, and more!
Pyth network is a 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 their price data on-chain directly. The network then aggregates this data on-chain and makes it available for on- or off-chain applications. Discover more in our whitepaper and wiki.
Take fate into your own hands.
What’s New in the Pyth ecosystem?
Pyth unlocks some of the best data for builders, pioneers, and innovators building on-chain and off-chain financial applications.
It’s our pleasure to support and build alongside so many talented teams and highlight their newest launches and debuts.
Things Are Warming Up with Friktion and Entropy
Friktion is a portfolio management protocol that allows anyone to generate returns in bull, bear, and rangebound (crab) markets. Earlier this March, Friktion launched Entropy Markets, a DEX focused on volatility products (Power Perpetuals and Implied Volatility Perps) aiming to improve its DOVs operations.
Friktion generates a 30-minute TWAP…based upon Pyth’s price feeds for options settlement at expiry and compares with the strike price to determine P&L of our Volts. With Entropy, we also leverage Pyth’s prices to determine funding rates on BTC²-PERP.
This month, Friktion reached $2.5 billion in Cumulative Traded Volume!
In addition, Friktion announced this week its partnership with Fireblocks HQ. This partnership will connect Fireblocks’ 1,300+ institutional clients directly to Friktion Volts.
Last, let’s talk divinity. Holders of Friktion’s Lightning OGs NFTs will have access to Friktion’s upcoming Volt#05: Capital Protection, geared to launch “very soon”…
Dual Finance is Bringing The Alpha and Gamma
Dual Finance is designing sustainable structured products for incentivizing Web3 communities. Their Dual Investment Pools (DIPs) are designed to “leapfrog” DOVs in execution and UX by allowing customized, fully controlled option yield strategies for token holders.
Dual Finance has developed a community-owned, open-source Risk Manager program for any protocol DIP position. This program deploys a trading strategy called gamma scalping using Pyth pricing on Mango Markets.
For the first time in the history of crypto, communities can participate in automated options risk management strategy. Gamma scalping is configurable through governance and puts to work capital from the treasury for the benefit of its token holders while increasing the liquidity of its own product offering.
Don’t Get Cold Feet with Snowflake
Snowflake is a multi-sig wallet and on-chain automation platform built for individuals, DAO’s and teams! Their latest product — Snowflake Safe — is the Gnosis Safe of Solana.
Through Snowflake, teams are already able to lend, swap and borrow tokens directly from the multi-sig platform. Price-conditional transactions and automation for users are #PoweredByPyth.
Snowflake recently integrated with Marinade Finance to allow users to stake their SOL and earn yields on idle tokens from their treasury.
Friktion also went live recently on Snowflake! Institutions, DAOs, and crypto asset managers can now earn yields on their funds directly through Snowflake Safe.
What’s next for Snowflake? Users will be able to receive notifications of transactions from their safe, pay with an integrated privacy layer, and invest in asset management products powered by some of the largest Solana platforms.
That’s the scoop on our data users this fortnight.
What’s Happening on the Publisher Side?
An Alternative Economy needs Altonomy
Altonomy is a world-leading trading and asset management firm in the crypto space with an internal capital northwards of $500 million.
We’re excited to have Altonomy onboard, as their contributions means more support for digital asset prices—the most popular of Pyth’s data offerings!
The market data infrastructure Pyth is providing to the industry is essential. For us to contribute to the effective pricing of various cryptocurrency assets, Pyth provides a great platform to engage and make sure traders are aligned,” said Ricky Li, co-founder of Altonomy. “We believe in collaboration among the most active traders to achieve effective pricing. Pyth provides us the platform to materialize that vision…”
What’s New with Pyth?
August 16th, 2022 marked the one-year anniversary of Pyth network’s mainnet launch on Solana. We would like to take the opportunity to thank all of our partners as we reflect on what we’ve achieved together!
Remember the early days? During our mainnet launch, we had just 17 publishers. Today, Pyth’s data provider roster includes more than 65 veteran market participants — that’s nearly one new publisher a week! More publishers mean stronger, more reliable pricing, plus more scalability into new symbols and asset types.
In short time, Pyth became the premier oracle of the Solana ecosystem. With more than 500K client downloads and over 75 integration partners (and up to $2B in Total Value Secured and $25B in total trading volume supported), it’s clear that everyone wants Pyth data.
We recently launched Pythnet, a powerful solution that will scale Pyth even further: more price feeds, more asset types, more chains, more everything!
So You Still Want to Use a Price Oracle (by Jump Crypto)
Jump Crypto offers a thoughtful and reflective piece on effective oracle designs. The trick is to ensure network participants have skin in the game.
Price oracles must be both accurate and timely, but often those two goals directly conflict.
In order to achieve both goals, we propose that price oracles align incentives internally, by having oracle operators stake reputation, collateral, and trading capital on the integrity and timeliness of the data.
This framework can be applied to the separate cases of the LIBOR index and the on-chain Pyth oracle, to understand which elements are designed well and which elements require further work.
Pythia’s Journey
Following the 1st edition of the Pythia, Oracle of DeFi comic, our community members (@EgorNaive and @VexterZ) released the sequel to Pythia’s tale!
Into the (Pythian) Oasis
Bear markets sometimes feel like walking through a desert. But fear not: you’ve just stumbled into the Pythian Oasis! The Oasians welcome you with refreshing insight into Pyth.
Check out their short and sweet explainer video, perfect for sharing. Still thirsty? Check out this deep dive expanding on Pyth’s roadmap, tokenomics, and a Q&A (with Pythia herself?)…
We can’t wait to hear what you think! You can join the Pyth Discord and Telegram, follow us on Twitter, and be the first to hear about what’s new in the Pyth ecosystem through our newsletter. You can also learn more about Pyth here.