Pyth Network $PYTH
is a decentralized oracle solution that provides real-time market data to blockchains. It incentivizes data providers to contribute financial data directly, ensuring high accuracy and transparency. The platform is built on the Solana blockchain and supports over 50 blockchains, offering a broad asset selection and multi-chain availability. PYTH tokens power the network and can be staked for rewards or traded on exchanges.
How is Pyth Network used?
Pyth Network (PYTH) is used to provide real-time financial market data to smart contract applications on over 50 blockchains. This data includes prices for various assets such as cryptocurrencies, commodities, and stocks. The network's flagship product, Price Feeds, offers near real-time pricing data, which is sourced directly from exchanges, market makers, and trading firms. This direct sourcing approach enhances accuracy and reduces delays in the DeFi industry.
Pyth Network's architecture incorporates a unique pricing structure called confidence intervals, which provide pricing data alongside a liquidity rating. This approach gives traders a more accurate representation of an asset's value. The network leverages three types of participants: feed users, publishers, and delegators. Feed users are Dapp developers, DeFi networks, and web3 applications that use Pyth's services. Publishers provide data from the source to the network and receive rewards in PYTH tokens based on metrics such as accuracy and timeliness. Delegators stake their tokens to publishers and earn rewards based on the accuracy of the publisher's data.
Pyth Network offers its services to all blockchain networks via bridges, with off-chain networks paying a small fee to use Pyth's oracles. This flexibility has helped the network expand its operations, with 25% of Oracle dapps currently leveraging a Pyth solution. Additionally, Pyth Network users on the Solana blockchain enjoy zero fees, which helps drive further expansion of the Solana ecosystem.