What is Pyth Network (PYTH)?

The Pyth Network is the most expansive and rapidly growing first-party Oracle network. It is dedicated to furnishing real-time market data to financial decentralized applications (dApps) across over 40 blockchains, delivering more than 380 low-latency price feeds spanning cryptocurrencies, equities, ETFs, FX pairs, and commodities.

This network brings together some of the world's largest exchanges, market makers, and financial services providers who contribute their price data for utilization by smart contracts. Among the prominent participants are Binance, OKX, Jane Street, Bybit, and Cboe Global Markets. The Pyth oracle program functions to aggregate this diverse data on-chain, providing a safeguard against inaccuracies and manipulation. Ultimately, the protocol empowers users to dynamically "pull" the latest price onto their respective blockchains as needed, ensuring access to real-time, accurate market information.

What makes Pyth Network unique?

Pyth Network distinguishes itself through a comprehensive offering of over 380 price feeds, covering a wide range of assets such as cryptocurrencies, foreign exchange pairs, equities, ETFs, and commodities like gold and silver.

A key feature of Pyth is its high-frequency data updates, with Oracle prices refreshing every 400 milliseconds, exceeding 200,000 updates per day. This frequent updating ensures precision and security for smart contract operations. Each Pyth Price Feed includes a confidence interval "band" around the reported price, providing users with information about market volatility and uncertainty.

One of Pyth's strengths lies in its reliance on trusted institutions, with over 90 data providers contributing proprietary price data to the network. These sources encompass major crypto exchanges like Binance, OKX, and Bybit, traditional financial players such as Cboe Global Markets and Jane Street, as well as decentralized exchanges like Orca and Raydium.

Pyth Network's permissionless integration allows developers to seamlessly access Pyth Price Feeds on more than 40 blockchains, including Ethereum, Optimism, Arbitrum, Solana, and others. This flexibility enables rapid expansion across multiple blockchains, offering a valuable resource for smart contract protocols in the decentralized finance (DeFi) ecosystem.

What is the history behind Pyth Network?

The Pyth Network commenced its journey in April 2021 through a collaborative effort involving various individual contributors. Among the early contributors were essential entities within the Pyth Network, including data providers such as GTS, LMAX Group, Virtu, Jump Crypto, and infrastructure partners like Triton One and Blockdaemon.

To foster and expand the Pyth Network ecosystem, the Pyth Data Association was established in 2021. Serving as a foundational pillar for the network's development, Douro Labs emerged in 2023 as a core contributor. Douro Labs took on the responsibility of building crucial infrastructure and developing necessary tools to facilitate the decentralized expansion of the network's data services. This evolution highlights the collaborative and dynamic nature of the Pyth Network, driven by the contributions of various entities committed to advancing the capabilities of decentralized financial data provision.

What can PYTH be used for?

PYTH serves as a governance token within the Pyth Network. Through on-chain voting by token-holders, Pyth Governance has the authority to decide key parameters of the oracle network's mechanisms. Coin-based governance systems, like the one facilitated by PYTH, empower token-holders to actively participate in shaping the development of the protocol. The scope of Pyth's on-chain governance includes significant protocol considerations such as determining the size and denomination of oracle fees, establishing reward mechanisms for data providers, and deciding on the inclusion of new data feeds. Detailed insights into Pyth Governance can be explored further through the official blog and whitepaper, providing a comprehensive understanding of the token's role in steering the protocol's evolution.

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