In the world of DeFi, oracles play a crucial role in bringing external data onto the blockchain. However, most traditional oracles rely on third parties to collect data, which can introduce latency and risk.
Pyth Network offers a differentiated approach:
First-party oracle: data provided directly from financial institutions, exchanges, and market makers.
No need for intermediary nodes: eliminates the middleman, reducing the risk of discrepancies and optimizing speed.
Real-time updates: prices and market data are continuously streamed to the chain, enabling more accurate DeFi trading.
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🚀 Outstanding strengths
Transparency: data has a clear source from reputable providers.
Security: minimizing manipulation risks as it does not go through multiple layers of intermediaries.
Scalability: multi-chain support, allowing DeFi on multiple blockchains to access the same accurate data source.
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🌐 Application in DeFi
Pyth Network is currently integrated into many financial protocols: from DEX, lending protocols to derivatives platforms. It helps the ecosystem operate more smoothly, especially in highly volatile markets where every second of data delay can cause significant damage.
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👉 With the decentralized oracle model of the first party, Pyth Network is not just a data source but also a reliable bridge between traditional markets and blockchain.