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History part added on Pythnet
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The Pyth network is '''a first-party financial oracle network''' designed to publish continuous real-world data on-chain in a tamper-resistant, decentralized, and self-sustainable environment. | The Pyth network is '''a first-party financial oracle network''' designed to publish continuous real-world data on-chain in a tamper-resistant, decentralized, and self-sustainable environment. | ||
The network incentivizes market participants — exchanges, market makers, and financial services providers — to share directly on-chain the price data collected as part of their existing operations. The network then aggregates this first-party price data (still on-chain) and makes it available | The network incentivizes market participants — exchanges, market makers, and financial services providers — to share directly on-chain the price data collected as part of their existing operations. The network then aggregates this first-party price data (still on-chain) and makes it available to either on- or off-chain applications.<ref>https://pyth.network/whitepaper</ref> | ||
==History== | ==History== | ||
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[https://pythnetwork.mypinata.cloud/ipfs/QmZyXccxUfhHjqHevkhWXKw5zWcnFj3NY4JvnrXbkeAEhw Whitepaper release]: January 18, 2022 | [https://pythnetwork.mypinata.cloud/ipfs/QmZyXccxUfhHjqHevkhWXKw5zWcnFj3NY4JvnrXbkeAEhw Whitepaper release]: January 18, 2022 | ||
On April 7, 2021, Dave Olsen, the President and Chief Investment Officer of [[wikipedia:Jump_Trading|Jump Trading]], announced on [https://podcast.jumpcap.com/public/88/The-Jump-Off-Point-8c500774/b546fd6a The Jump Off Point podcast] that Jump Trading is “collaborating on a world oracle project called Pyth”.<ref>https://podcast.jumpcap.com/public/88/The-Jump-Off-Point-8c500774/b546fd6a</ref> Pyth then revealed its live devnet prices [https://pythnetwork.medium.com/bf6877f8ece3 in mid-May] and showcased its live streaming and sub-second price update capabilities. | On April 7, 2021, Dave Olsen, the President and Chief Investment Officer of [[wikipedia:Jump_Trading|Jump Trading]], announced on [https://podcast.jumpcap.com/public/88/The-Jump-Off-Point-8c500774/b546fd6a The Jump Off Point podcast] that Jump Trading is “collaborating on a world oracle project called Pyth”.<ref>https://podcast.jumpcap.com/public/88/The-Jump-Off-Point-8c500774/b546fd6a</ref> Pyth then revealed its live devnet prices [https://pythnetwork.medium.com/bf6877f8ece3 in mid-May] and showcased its live streaming and sub-second price update capabilities. On August 26, the Pyth network officially launched on the [[Solana]] [https://pythnetwork.medium.com/the-pyth-network-mainnet-a3d45d2c0f58 mainnet]. | ||
Pyth finished 2021 with over $1B in Total Value Secured (TVS), and facilitated over $7B in trading (including perpetual and synthetics platforms), with 38 announced mainnet integration partners and 41 data publishers.<ref>https://pythnetwork.medium.com/pythiad-6-2021-in-review-2022-in-sight-5e1f4c1743cc</ref> Since then, Pyth TVS reached about $2B spread over 50 integrations and welcomed more than 15 new data publishers.<ref>https://pythnetwork.medium.com/pythiad-6-2021-in-review-2022-in-sight-5e1f4c1743cc</ref> | Pyth finished 2021 with over $1B in Total Value Secured (TVS), and facilitated over $7B in trading (including perpetual and synthetics platforms), with 38 announced mainnet integration partners and 41 data publishers.<ref>https://pythnetwork.medium.com/pythiad-6-2021-in-review-2022-in-sight-5e1f4c1743cc</ref> Since then, Pyth TVS reached about $2B spread over 50 integrations and welcomed more than 15 new data publishers.<ref>https://pythnetwork.medium.com/pythiad-6-2021-in-review-2022-in-sight-5e1f4c1743cc</ref> | ||
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The Pyth network has also been involved in several public events within the Solana ecosystem and DeFi. Pyth was a sponsor for the [https://solana.com/solanaszn Solana Season Hackathon] (May 15-June 7, 2020) and the [https://serum-wormhole-hackathon.devpost.com/ Convergence - Serum x Wormhole Hackathon] (January 7-31, 2021). Pyth also held its first own [https://www.youtube.com/playlist?list=PLilwLeBwGuK6TE5QuMos8a8B9uOfS2cm1 workshop] in Chicago for developers looking to learn more about Pyth and building on top of it (January 17-21, 2022). Outside of DeFi, Pyth was a platinum sponsor at the 2022 [https://www.fia.org/events/international-futures-industry-conference?utm_source=FIAWeb&utm_medium=Top FIA Boca Conference] in Florida (March 15-17). | The Pyth network has also been involved in several public events within the Solana ecosystem and DeFi. Pyth was a sponsor for the [https://solana.com/solanaszn Solana Season Hackathon] (May 15-June 7, 2020) and the [https://serum-wormhole-hackathon.devpost.com/ Convergence - Serum x Wormhole Hackathon] (January 7-31, 2021). Pyth also held its first own [https://www.youtube.com/playlist?list=PLilwLeBwGuK6TE5QuMos8a8B9uOfS2cm1 workshop] in Chicago for developers looking to learn more about Pyth and building on top of it (January 17-21, 2022). Outside of DeFi, Pyth was a platinum sponsor at the 2022 [https://www.fia.org/events/international-futures-industry-conference?utm_source=FIAWeb&utm_medium=Top FIA Boca Conference] in Florida (March 15-17). | ||
On August 1, 2022, the Pyth network [https://medium.com/@pythnetwork/introducing-pythnet-f54192c355c5 officially announced Pythnet], a network built on the Solana codebase that enables the Pyth network to aggregate first-party data at sub-second speeds and deliver pricing to other chains via the Wormhole cross-chain messaging protocol. Pythnet allows Pyth to take the next step in its evolution by adding new financial data and continuing to grow its network of high-quality first-party data providers. These additional high-fidelity feeds will be available on other chains, including Solana, via the Wormhole protocol. | |||
Thanks to Pythnet, Pyth Network price feeds are now live on: | |||
* Aptos | |||
* Aurora | |||
* BNB Chain | |||
* Ethereum | |||
* Optimism | |||
* Solana | |||
* and many more | |||
==General Concepts== | ==General Concepts== | ||
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Each feed admits to the following features: | Each feed admits to the following features: | ||
* '''Continuous Streaming:''' Thanks to | * '''Continuous Streaming:''' Thanks to Pythnet, Pyth is able to stream data at a sub-second latency and at affordable costs. The network’s publishers can update prices at every Pythnet slot — currently once every 400ms. | ||
* '''Sophisticated Aggregation:''' As a reminder, the Pyth program computes this price on-chain by aggregating individual publishers' prices and confidence intervals. The first step of the algorithm computes the aggregate price by giving each publisher three votes — one vote at their price and one vote at each of their price +/- their confidence interval — and by then taking the median of all the votes. The second step computes the distance from the aggregate price to the 25th and 75th percentiles of the votes, then selects the larger of the two as the aggregate confidence interval. Overall, the aggregate price will always lie within the 25th-75th percentile of the publisher’s prices. In addition, Pyth is working on a staking system for publishers that incentivizes them to provide accurate data. In that system, each publisher will have a varying amount of stake. All of the results also hold for stake weights if Pyth replaces the percentage of publishers with the percentage of stake controlled. In the future, the weight calculation can be extended to include other non-price factors such as publisher’s stake, historical publisher’s performance, and other relevant metrics. For more information, please visit the Pyth [https://docs.pyth.network/how-pyth-works/price-aggregation docs]. | * '''Sophisticated Aggregation:''' As a reminder, the Pyth program computes this price on-chain by aggregating individual publishers' prices and confidence intervals. The first step of the algorithm computes the aggregate price by giving each publisher three votes — one vote at their price and one vote at each of their price +/- their confidence interval — and by then taking the median of all the votes. The second step computes the distance from the aggregate price to the 25th and 75th percentiles of the votes, then selects the larger of the two as the aggregate confidence interval. Overall, the aggregate price will always lie within the 25th-75th percentile of the publisher’s prices. In addition, Pyth is working on a staking system for publishers that incentivizes them to provide accurate data. In that system, each publisher will have a varying amount of stake. All of the results also hold for stake weights if Pyth replaces the percentage of publishers with the percentage of stake controlled. In the future, the weight calculation can be extended to include other non-price factors such as publisher’s stake, historical publisher’s performance, and other relevant metrics. For more information, please visit the Pyth [https://docs.pyth.network/how-pyth-works/price-aggregation docs]. | ||
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* [https://amptoken.org/ Amp] (collateral platform) | * [https://amptoken.org/ Amp] (collateral platform) | ||
* [https://flexa.network/ Flexa] (payments platform) | * [https://flexa.network/ Flexa] (payments platform) | ||
* [https://www.hashflow.com/ Hashflow] (decentralized exchange platform) | * [https://www.hashflow.com/ Hashflow] (decentralized exchange platform) | ||
* [https://www.ribbon.finance/ Ribbon Finance] (DeFi Options Vault) | * [https://www.ribbon.finance/ Ribbon Finance] (DeFi Options Vault) | ||
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'''BNB Chain''' | '''BNB Chain''' | ||
* [https://www.wombat.exchange/ Wombat Exchange] (decentralized exchange platform) | * [https://venus.io/ Venus] (borrow-lending platform) | ||
*[https://www.wombat.exchange/ Wombat Exchange] (decentralized exchange platform) | |||
'''Solana''' | '''Solana''' | ||