Pyth

Pyth is a decentralized oracle network designed to deliver high-frequency pricing data to blockchains.

The network’s core mission is to supply accurate, timely data to decentralized applications (dApps) across a wide range of blockchains, enhancing the functionality and reliability of smart contracts in various financial sectors such as cryptocurrencies, equities, exchange-traded funds (ETFs), foreign exchange (FX) pairs, and commodities. Pyth sources data directly from a consortium of financial institutions including exchanges, market makers, and services providers which ensures that the data provided is both current and reliable.  

PYTH is the network’s token.

The network initially launched on the Solana network in 2019 as a way to make it easier for first-party financial firms and exchanges to distribute pricing data to blockchains more quickly than incumbent oracle platforms. In 2023 Pyth moved its own blockchain, Pythnet, based on Solana’s codebase. Pyth’s novel “pull”-based approach to pricing is supposed to make it easier for traders to get up-to-the-moment pricing information. Holders of PYTH, the project’s Solana-based token, are considered members of the Pyth DAO (decentralized autonomous organization) and can vote on decisions surrounding the protocol’s development.

The project was initially incubated by Jump Crypto, the blockchain arm of Jump, a large Chicago-based trading firm, but it is now operated by the Pyth DAO – the community of PYTH token-holders.

PYTH launched in November 2023.

Pyth Network’s technical infrastructure is built on a collection of open-source repositories, supporting various programming languages and frameworks, ensuring wide accessibility and ease of integration for developers. This protocol aggregates data from a diverse network of nodes, including some of the world’s leading exchanges and financial services providers. 

A decentralized oracle protocol forms the backbone of the Pyth Network’s security architecture. The security of the Pyth Network leverages a combination of open-source software repositories, such as “pyth-client” and “pyth-sdk-rs.” Furthermore, the network employs a system of delegators who stake PYTH tokens, adding an additional layer of security through economic incentives. These delegators play a crucial role in maintaining the network’s integrity, as they are incentivized to act in the best interest of the network’s accuracy and reliability.