Oracles have been the backbone of DeFi’s growth, evolving through three distinct generations. The first was a shaky start: centralized oracles pulling data from single sources like exchanges were easy to set up but prone to manipulation.
Flash loan exploits in early DeFi projects proved their weakness, costing millions and highlighting the need for resilience. The second generation, led by Chainlink, introduced decentralized oracle networks. Multiple nodes fetched and aggregated data, making systems more robust but slower, struggling with high-frequency use cases like derivatives. Now, we’re in the third generation, where speed, accuracy, and decentralization converge.
Pyth Network exemplifies this leap, sourcing real-time data directly from the institutions that generate it—exchanges and market makers—bypassing slow intermediaries. With feeds across 30+ blockchains, Pyth is built for DeFi’s next wave: structured products, tokenized real-world assets, and more. As oracles evolve, they’re not just supporting DeFi they’re defining its limits and possibilities.
@Pyth Network #PythRoadmap $PYTH
