Pyth Network (PYTH): A Game-Changer in DeFi Oracles

by Nov 22, 2023Defi0 comments

Pyth Network (PYTH) is a decentralized data oracle that aims to provide high-fidelity, real-time, and low-cost market data to various blockchain platforms and applications, especially those related to decentralized finance (DeFi). Pyth Network leverages the power and speed of the Solana blockchain, as well as the expertise and reputation of its data partners, to deliver accurate and reliable data on various asset classes, such as cryptocurrencies, stocks, commodities, and forex. 

In this article, we will provide an in-depth explanation of Pyth Network, including its purpose, functionality, beneficiaries, and potential price projections for the future.

What is an Oracle and Why is it Important for DeFi?

An oracle is a system that connects a blockchain to external data sources, such as market prices, weather conditions, or sports outcomes. Oracles are essential for smart contracts, which are self-executing agreements on the blockchain that require external data to trigger their execution. For example, a smart contract that pays out a certain amount of cryptocurrency based on the price of gold needs an oracle to provide the price of gold from a trusted source. If you want to learn more about oracles, read our article about “What Are Blockchain Oracles?”.

What is Pyth Network and How Does it Work?

Pyth Network

Pyth Network is a new and innovative oracle that aims to provide high-fidelity, real-time, and low-cost market data to various blockchain platforms and applications, especially those related to DeFi. Pyth Network leverages the power and speed of the Solana blockchain, as well as the expertise and reputation of its data partners, to deliver accurate and reliable data on various asset classes, such as cryptocurrencies, stocks, commodities, and forex.

Pyth Network works as follows:

  • Data partners: Data partners are entities that provide market data to Pyth Network, such as trading firms, exchanges, and market makers. Data partners send their data directly to Solana nodes for aggregation by Pyth Network, meaning that the data is more trustworthy and secure than other third-party aggregators. Data partners can also benefit from providing data to Pyth Network, as they can earn rewards and fees from the network, as well as access and use the data from other data partners.
  • Data aggregation: Data aggregation is the process of collecting, processing, and distributing the data from the data partners to the blockchain platforms and applications that need it. Pyth Network uses a two-layer approach for data aggregation: the first layer is on the Solana blockchain, where the data is aggregated and updated every 400 milliseconds, and the second layer is on the cross-chain bridges, where the data is transferred and translated to other blockchain platforms, such as Ethereum, Binance Smart Chain, or Terra.
  • Data consumption: Data consumption is the process of accessing, using, and paying for the data from Pyth Network by the blockchain platforms and applications that need it, such as DeFi smart contracts and DApps. Data consumers can benefit from using the data from Pyth Network, as they can access high-fidelity, real-time, and low-cost market data on various asset classes, as well as participate and contribute to the governance and development of Pyth Network.
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Who Can Benefit from Pyth Network?

Pyth Network

There are many potential beneficiaries of Pyth Network, such as:

  • Data partners: Data partners are entities that provide market data to Pyth Network, such as trading firms, exchanges, and market makers. Data partners can benefit from providing data to Pyth Network, as they can earn rewards and fees from the network, as well as access and use the data from other data partners.
  • Data consumers: Data consumers are entities that use market data from Pyth Network, such as DeFi smart contracts and DApps. Data consumers can benefit from using data from Pyth Network, as they can access high-fidelity, real-time, and low-cost market data on various asset classes, as well as participate and contribute to the governance and development of Pyth Network.
  • Data enthusiasts: Data enthusiasts are individuals or groups that are interested in market data and its applications, such as researchers, analysts, or investors. Data enthusiasts can benefit from Pyth Network, as they can discover, explore, and learn from the data and the platforms that use it, as well as interact and collaborate with the community and the ecosystem.

How to Buy Pyth?

One of the ways to buy Pyth Network (PYTH) is to use Bitrue, which is a cryptocurrency exchange that supports PYTH trading. Here are the steps to buy PYTH on Bitrue:

  1. First, you need to create an account on Bitrue and verify your identity. You can sign up on Bitrue’s official website or download the Bitrue app on your device.
  1. Second, you need to link your credit card to your Bitrue account. You can do this by going to the “Credit Card” section and following the instructions. You can use your credit card to buy cryptocurrencies, such as Bitcoin (BTC) or Ethereum (ETH), which you can then use to buy PYTH.
  1. Third, you need to go to the “Buy Pyth Network (PYTH)” or “Trade” section. You can choose the amount of PYTH you want to buy and confirm the purchase. Your PYTH will be added to your Bitrue wallet after a successful transaction.

Alternatively, you can also buy PYTH on other platforms or exchanges that support PYTH trading, such as Bitget, Coinscan, or Uniswap ,kocoin okx , Bybit, Htx. You can find more information and tutorials on how to buy PYTH on these platforms or exchanges on their respective websites.

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On Which Exchanges is Pyth Network Listed?

Please design an image and include all the logos of each exchange

Users can buy, sell, and swap PYTH in different exchanges including:

List of Exchanges Where Pyth Network is ListedOfficial WebsiteLogo
1Bitruewww.bitrue.comBitrue
2Bitgetwww.bitget.comBitget
3Coinscanwww.coinscan.comCoinscan
4Uniswapwww.uniswap.orgUniswap
5OKXwww.okx.comOKX
6HTXwww.htx.comHTX
7KuCoinwww.kucoin.comKuCoin

Pyth Network Tokenomics

Pyth Network tokenomics is the term that refers to the design and distribution of the Pyth Network governance token, PYTH. PYTH is a token that allows holders to participate and influence the development and direction of Pyth Network, which is a decentralized data oracle that provides high-fidelity, real-time, and low-cost market data to various blockchain platforms and applications, especially those related to decentralized finance (DeFi).

According to the Pyth Network website, the tokenomics of PYTH are as follows:

  • The max supply of PYTH is 10 billion tokens, and the initial circulating supply is 1.5 billion tokens, which is 15% of the max supply.
  • The other 85% of the PYTH tokens are initially locked and will unlock 6, 18, 30, and 42 months after the initial token launch, according to a vesting schedule.
  • The token distribution is divided into four categories: publisher rewards, ecosystem growth, team and advisors, and investors and partners.
  • Publisher rewards are 22% of the max supply, which is 2.2 billion tokens. These tokens are reserved for the data providers, or publishers, who publish market data to Pyth Network. The publishers can earn rewards and fees from the network, as well as access and use the data from other publishers.
  • Ecosystem growth is 52% of the max supply, which is 5.2 billion tokens. These tokens are set aside for contributors to Pyth Network, such as developers, educators, researchers, strategic contributors, early publishers, and more. These tokens aim to facilitate practical initiatives, such as funding research projects, incentivizing developers, and supporting public education programs.
  • Team and advisors are 13% of the max supply, which is 1.3 billion tokens. These tokens are allocated to the core team and advisors of Pyth Network, who are responsible for the vision, strategy, and execution of the project. These tokens are subject to a vesting schedule and a lock-up period.
  • Investors and partners are 13% of the max supply, which is 1.3 billion tokens. These tokens are distributed to the investors and partners of Pyth Network, who are entities that provide financial and strategic support to the project. These tokens are subject to a vesting schedule and a lock-up period.

What Wallet Can You Use to Buy Pyth Network?

There are different wallets that users can use to store, send, receive, and swap PYTH, as well as to access various DApps and DeFi platforms that use PYTH including:

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Wallets that support PYTHOfficial WebsiteLogo
1TokenPocketwww.tokenpocket.proTokenPocket
2Assure Wallet www.assure.proAssure Wallet 
3Coinhubwww.coinhub.mnCoinhub
4OKX Walletwww.okx.comOKX
5Solflarewww.solflare.comSolflare
6SimpleHold Walletwww.notum.aiSimpleHold Wallet
7Coin98www.coin98.com/walletCoin98
8Wirex Wallet www.wirexapp.comWirex Wallet 

Overview of Pyth Network Price From Inception to Present

 Pyth Network Price

This chart displays the price of Pyth Network from November 2022 to November 2023. This project holds significant growth potential. The all-time high of this token is $0.38. Currently, it has been listed on reputable exchanges such as Kucoin, Bybit, and OKX, and it possesses a strong upward momentum. There is a high probability that it may reach an all-time high of $0.5.

What Are the Advantages and Challenges of Pyth Network?

Advantages and Challenges of Pyth Network

Pyth Network offers several advantages and challenges for its users, developers, and partners, such as:

Advantages:

  • High-fidelity: Pyth Network provides high-fidelity market data, which means that the data is accurate, precise, and consistent, and that it reflects the true and fair value of the assets. Pyth Network achieves this by using sub-second data from the data partners, who are experts and leaders in their respective markets, and by using a confidence interval for each data point, which indicates the degree of certainty and variability of the data.
  • Real-time: Pyth Network provides real-time market data, which means that the data is updated and delivered as fast as possible, and that it reflects the current and dynamic state of the markets. Pyth Network achieves this by using the Solana blockchain, which is one of the fastest and most scalable blockchains in the world, and by using a two-layer approach for data aggregation, which optimizes the speed and the compatibility of the data across different blockchains.
  • Low-cost: Pyth Network provides low-cost market data, which means that the data is affordable and accessible for the users, developers, and partners, and that it reduces the friction and the inefficiency of the market. Pyth Network achieves this by using the Solana blockchain, which has low transaction fees and high throughput, and by using a decentralized and incentive-based model for data provision and consumption, which eliminates intermediaries and central authorities.

Challenges:

  • Regulation and compliance: Regulation and compliance are issues that affect the crypto space in general, but they can also have specific implications for Pyth Network and its data partners, users, and developers. Regulation and compliance can vary depending on the jurisdiction and the industry, and they can pose legal and ethical challenges and risks for Pyth Network and its stakeholders, as well as affect the availability and accessibility of the data and the platforms.
  • Adoption and integration: Adoption and integration are factors that affect the growth and success of Pyth Network and its data partners, users, and developers. Adoption and integration can depend on various factors, such as the awareness, education, and trust of the market, the quality, functionality, and compatibility of the data and the platforms, and the innovation, collaboration, and competition of the ecosystem.

Conclusion

In conclusion, If you are a trader or investor seeking potentially promising tokens, Pyth Network presents itself as a compelling investment opportunity. We encourage you to read this article to learn more about buying Pyth Network tokens and to also consider the insights provided by our experts’ predictions.

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