Designing tomorrow’s oracle today. The security associated with blockchain technology comes with a few inherent weaknesses. One of the main ones concerns the difficulty of communicating with external sources. This has led to the development of « Oracle »-type solutions designed to enable rapid, secure data transmission necessary for the smooth operation of smart-contracts. A fast-growing, cutting-edge sector in which the Pyth Network has established itself as a major player. Latest innovations: a Pyth V2 version associated with the Pythnet project and its revolutionary « pull oracle » concept.
Le Journal du Coin brings you this promotional article in collaboration with Pyth Network.
Pyth Network, a key player in cross-chain oracles
The Pyth Network project was first developed on the Solana network. But very quickly its ambitions became part of a cross-chain dynamic which is highly relevant in the cryptocurrency sector. A development strategy partly accelerated by the collapse of the FTX platform. And the results are in…
In fact, the oracle solution from Pyth Network works today on more than twenty different blockchain networks. These include networks with the most active users and developers, such as layers 2 Arbitrum and Optimism. But this also applies to the fledgling Aptos project, whose mainnet was launched in October last year. And it is precisely this association that makes it possible to offer price feeds delivered in less than a second (sub-second price feeds).
With this emancipation from the Solana network, the Pyth Network project was also able to focus on the recent delivery of its V2. An evolution proposed in partnership with the Wormhole inter-chain messaging protocol. All this is now fertile ground on which to build many significant developments and use cases. One of these is none other than the « pull oracle » concept in connection with the Pythnet environment.
Pythnet and the revolutionary « pull oracle » concept
Since August 2022, the Pyth Network is based on a network infrastructure called Pythnet. The main advantage of this modification is greatly improved latency and refresh rate when delivering data. But that’s not all.
Indeed, this recent upgrade has also enabled the launch of the innovative « pull oracle » concept. Because most services of this type currently operate on a push model to update prices. This poses a number of recurring problems, such as the need to pay a transaction fee for each request. A situation that poses a fundamental dilemma between cost and scalability. But as the Pyth Network developers explain, sometimes it’s better to pull than to push.
« The Pyth Network has just launched Pythnet Price Feeds, a new, highly accurate and scalable price oracle. The oracle is designed around a new on-demand or pull-based price update model that eliminates some of the key cost trade-offs that limit the performance of previous designs. »
Pyth Network
And this « pull » solution has all the makings of a minor revolution in the oracle sector. In effect, it introduces an « on-demand » model for price updates. In effect, data is delivered only when needed instead of being « constantly pushed onto the blockchain. »
Business up sharply since the start of the year
The Pyth Network project is therefore built on solid foundations. And its next-generation oracle service is an ever-growing successacross all networks. In fact, we only have to look at the evolution of its activity curve in the first quarter of this year to see that.
The new pull model « has already provided over 800,000 on-chain price updates on more than a dozen blockchains » during this period. A dynamic that looks set to continue.
The second quarter of this year also confirmed Pyth Network’s success. Firstly, thanks to a major partnership with the Synthetix protocol, emblematic of the DeFi. Indeed, its oracle solution has become the main option for its Perps V2 perpetual contracts on the Optimism network. As a direct consequence, savings for its users are already estimated at over 10 million dollars in transaction costs.
Secondly, because Pyth Network has also become the Venus protocol’s on-chain data source for its new Isolated Lending Markets service, as well as the appointed manager of the stETH/USD price feed set up by the staking protocol Lido Finance and available on 25 different blockchains.
Pyth Network continues to build during the bear market
And the developers of the Pyth Network are not resting on their laurels. They are even taking advantage of this bear market to continue offer new, innovative solutions. And the latest product to emerge is called « Pyth Benchmarks ». Its aim: « to enable the storage of data passing through Pyth so that in-depth on-chain analyses can be carried out. »
A solution that could eventually enable create new standards, as already exist in traditional finance. For example, reference rates applied to the Bitcoin market on the model of LIBOR in the banking sector. But also the implementation of indices applied to the cryptocurrency market, supported by data delivered in real time by de Pyth Network.
Finally, another tool for crypto investors sees the light of day. It’s called « Pyth Liquidity Oracle V1. » And its aim is to mitigate the risks inherent in illiquid tokens, which can be very useful.
The Pyth Network project has carved out a special place for itself in the oracle sector. With a strategy based on innovation and the development of services of proven utility. A dynamic in which it is possible to participate on its brand-new official account on the X network for its French-speaking community. Don’t hesitate to join…