Difference between revisions of "Pyth Network"

Jump to navigation Jump to search

Pyth Network (view source)

Revision as of 18:18, 10 May 2022

252 bytes removed ,  18:18, 10 May 2022
Updated Tables in the Examples section
m (typo edits)
(Updated Tables in the Examples section)
Line 1: Line 1:
[[File:Pyth Network Logo.jpg|thumb|300x300px|Pyth Network]]
[[File:Pyth Network Logo.jpg|thumb|301x301px|Pyth Network]]
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.


Line 35: Line 35:


=== The Price of an Asset ===
=== The Price of an Asset ===
[[File:Pyth Feed Real-Time.png|thumb|Pyth Price and Confidence Interval]]Consider a single stock, say [[wikipedia:Tesla,_Inc.|TSLA]].  
[[File:Pyth Feed Real-Time.png|thumb|Pyth Price and Confidence Interval|404x404px]]Consider a single stock, say [[wikipedia:Tesla,_Inc.|TSLA]].  


“What is the price of TSLA?” is a seemingly simple question, but there are subtle complications.
“What is the price of TSLA?” is a seemingly simple question, but there are subtle complications.
Line 98: Line 98:


<u>'''Example:'''</u>
<u>'''Example:'''</u>
{| class="wikitable"
 
|+<small>Pyth Network BTC/USD Price on 01/01/2022 @ 08.00.00AM</small>
Let's assume the following values were submitted by publishers and returned by the Pyth smart contract on a specific time for BTC/USD.
!
[[File:Pyth network.png|left|frameless|479x479px]]
!Price ($)         
 
!Confidence Interval (+/- $)
 
|-
 
|Pyth Publisher A
 
|51,000
 
|1,000
 
|-
 
|Pyth Publisher B
 
|50,000
 
|500
|-
|Pyth Publisher C
|49,000
|1,000
|-
|'''Pyth Output'''
|          '''50,000'''
|                  '''750'''
|}
''Note that 1,000 is an unusually wide confidence interval for bitcoin. The typical confidence interval is ~50 (0.1%).''
''Note that 1,000 is an unusually wide confidence interval for bitcoin. The typical confidence interval is ~50 (0.1%).''


''Reminder that the Pyth network price range extends from the minimum aggregate price minus 3 confidence intervals to the maximum aggregate price plus 3 confidence intervals.''
''Reminder that the Pyth network price range extends from the minimum aggregate price minus 3 confidence intervals to the maximum aggregate price plus 3 confidence intervals.''


So the '''Pyth price range extends from''' '''47,750 to 52,250.'''   
So the '''Pyth price range extends from''' '''47,750 to 52,250.'''
 
Now, let's assume the Pyth Governance selected Coinbase and Binance as the reference exchanges for any BTC/USD Claim Process and the Human Job returns the following values.  
 
[[File:Human Protocol Inputs.png|frameless|479x479px]]
 
''Reminder that the Human Protocol price range extends from the lowest reference exchange reported price to the highest reference exchange reported price.''


Now, let's assume the Pyth Governance selected Coinbase and Binance as the reference exchanges for any BTC/USD Claim Process and the Human Job returned the following values:
{| class="wikitable"
|+<small>Human Protocol BTC/USD on 01/01/2022 @ 08.00.00AM</small>
!
!Lowest Reported Price ($)
!Highest Reported Price ($)
|-
|Coinbase
|46,500
|46,750
|-
|Binance
|46,750
|47,300
|}
So the '''Human Protocol price range extends from 46,500 to 47,300.'''
So the '''Human Protocol price range extends from 46,500 to 47,300.'''


In this case, '''the Pyth range''' ($47,750 to $52,250) '''does not overlap with the Human range''' ($46,500 to $47,300). '''Therefore this claim is valid.'''
In this case, '''the Pyth range''' ($47,750 to $52,250) '''does not overlap with the Human range''' ($46,500 to $47,300).  
{| class="wikitable"
 
|+'''<small>Identifying at-fault Pyth Publishers</small>'''
'''Therefore this claim is valid and we now look for the at-fault publishers.'''
!
 
!Lowest Reported Price ($)
[[File:Identifying at-fault Pyth Publishers (3).png|frameless|479x479px]]
!Highest Reported Price ($)
 
|-
'''Pyth Publishers A & B do not overlap with the Human Protocol range and so are automatically identified as at-fault publishers.'''
|Human Protocol
 
|46,500
'''Their stake is slashed and paid out to voluntarily paying users.'''
|47,300
|-
|Pyth Publisher A
|48,000
|54,000
|-
|Pyth Publisher B
|48,500
|51,500
|-
|Pyth Publisher C
|46,000
|52,000
|}
'''Pyth Publishers A & B do not overlap with the Human Protocol range and so are automatically identified as at-fault publishers. Their stake is slashed and paid out to voluntarily paying users.'''


== Pyth Network Products ==
== Pyth Network Products ==
Line 222: Line 188:


<references />
<references />
[[Category:Solana]]
KemarTiti
12

edits

Retrieved from "https://wiki.defillama.com/wiki/Special:MobileDiff/2188"

Navigation menu