As on-chain finance gradually aligns with traditional capital markets, @Pyth Network is upgrading the concept of 'oracle' to a verifiable data distribution network. Its pull-based architecture allows applications to update first and consume later in the same transaction, completely eliminating the cost waste caused by fixed heartbeat. More importantly, first-party data sources are directly uploaded by market makers and exchanges, supplemented by confidence interval indicators, allowing on-chain protocols to dynamically adjust risk parameters based on market discrepancies, rather than relying on a single point price for arbitrary decision-making.
In the past year, $PYTH
The network has expanded to over 100 public blockchains and L2, covering over 1,900 assets, with a daily processing value exceeding 5 billion dollars. Express Relay further returns the profits from front-running in extreme market conditions to liquidity providers through a 'priority auction' mechanism, significantly reducing the harm of MEV to ordinary users. The next milestone is to put macroeconomic data, RWA pricing, and even credit spreads on-chain, making it a trusted price layer for institutions to conduct on-chain settlements and hedging.
In this system, it undertakes the three functions of incentives, staking, and governance: data providers must collateralize tokens, and uploading distorted data will be punished; a portion of the network's revenue is directed for buybacks or distributed to stakers, forming a positive flywheel; at the governance level, token holders can vote on new data streams, fee parameters, and buyback plans, thus deeply binding the commercialization path with community interests. Currently, the circulation ratio is less than 15%, and while the future unlocking pace may bring short-term fluctuations, the cash flow expectations from institutional subscription services provide a medium- to long-term pricing anchor for the tokens.
Of course, it still needs to overcome three hurdles: first, cross-chain security, as any bridging vulnerability could threaten price integrity; second, the compliance audit requirements of traditional institutions, which must meet standards such as SOC and ISO; third, the oracle track is filled with competitors, and technical barriers must transform into network effects to build a moat. If the above goals can be successfully achieved, the 'global trusted data layer' depicted will no longer be a vision but a necessity for financial infrastructure.
