Hello World
Today we’re beyond excited to introduce the Pyth Network, a next-generation oracle solution designed to bring HiFi data to DeFi.
Pyth Network is being built by some of the biggest names in traditional finance and DeFi with the goal of providing the infrastructure for DeFi to support substantial growth in the market. This requires legally authorized access to unique data sets, sub-second update speeds, sophisticated outputs, and aggregation methods, and a thorough incentive system to ward off spurious or malicious data breaches.
Why are we doing this?
- We think DeFi likely will grow. A lot. If DeFi reaches its full potential, it could grow to multiple trillions of dollars of TVL spanning the vanguard users of today to the largest institutions. The tools to empower that exponential growth needs to be robust. The iPhone enabled an entirely new industry of companies, but there were many components that had been built over a long period of time to make the iPhone possible. At some point, there could be an iPhone moment in DeFi and we can only hope that Pyth Network will be one of the components that enable this type of innovation.
- The oracle problem for latency-sensitive, continuous data needs to be solved. Reliable, institutional-grade market data oracles are lacking in DeFi, and we hope to fill that gap. There are many idiosyncrasies with this type of data that require a special type of oracle solution. Existing solutions focus on harnessing the wisdom of crowds to source data. We admire and encourage those projects and think that Pyth Network will be complementary.
- Pyth quoters have troves of data. Over the years, data has become a big business, typically owned by one or a few centralized providers of data. Pyth Network has attracted some of the largest traders and exchanges who have lots of data, but for whom selling data is not a primary business. Using the power of decentralization, we hope to pool that unharnessed data and create alternative sources of high-quality composite market data.
- We believe in fair and transparent markets governed by users. Blockchains are unique in the transparency they provide with mechanisms for decision-making by users in a fair and transparent way. Pyth Network is designed to be open and accessible. There will be roles for all interested and motivated participants from providing and consuming data, to securing that data or helping determine which data to source. By enabling a diverse ecosystem of participants, we think Pyth Network will continue to innovate and strive to provide the market with the tools it needs.
So what’s next?
This is our hello world moment. Over the next two weeks, we plan to roll out a beta version available for testing. We encourage you to get in touch if you are building something that could benefit from a fast and reliable oracle for financial market data. We also encourage you to get in touch if you have the legal right to publish a unique data set of latency-sensitive data.
We can’t wait to hear what you think! Feel free to join the Pyth Discord server. Follow Pyth on Twitter. Join our Telegram channel or the Substack to learn more, and send us any questions you may have. More information is available at the Pyth Directory.
