Pyth Network /PYTH

What is Pyth Network(PYTH)? 

The Pyth Network is a cutting-edge Oracle solution powered by its native currency, PYTH Coin. It gives blockchain platforms access to current financial market data. Pyth gathers up-to-date pricing data from reliable sources, such as leading trading companies, exchanges, and financial institutions.

Blockchains have direct access to this data, which facilitates accurate and trustworthy information access for decentralized finance (DeFi) applications. Pyth makes sure that decentralized apps (dApps) may rely on reliable, high-quality market data in order to operate efficiently.

Important components of the path network include

A decentralized protocol called the Pyth Network allows market players to post real-time pricing information for blockchain applications. Data providers, the Pyth protocol, and data users are its three main constituents. 

Data Providers: Supply real-time, high-fidelity pricing information from traditional financial markets and other data sources to the Pyth Network.

The Pyth Protocol: Aggregates and verifies the submitted data on-chain, ensuring accuracy and reliability for blockchain applications.

Data Users: Leverage the verified data from the Pyth Network for use in decentralized applications, smart contracts, and other blockchain-based systems.

Exchanges and trading firms are among the data providers that give price data with confidence intervals for assets such as BTC/USD. Pythnet, a proof-of-authority blockchain, aggregates this data every 400 ms to produce reliable and accurate price feeds while preventing manipulation and outliers.

What makes PYTH Unique? 

What changes Pyth from the rest of the Oracle solution is the way it does high-speed latency data feeding. So that these applications of blockchains, such as decentralized finance (DeFi), can operate with reliable and accurate data as it pertains to price, trading, and risk analytical functions. Pyth is a multi-chain supporting load of blockchains such as Solana, Ethereum, and Avalanche, to mention a few, through robust APIs for seamless integration.

As of 2024, Pyth Network supports 80+ blockchains, allowing decentralized applications to incorporate accurate data to power their operations. Over 540+ data feeds deliver high-quality information from 120+ market participants, including major contributors like Jane Street, Binance, and Bybit. Pyth's infrastructure ensures 110M+ daily updates, enabling precise and secure smart contract execution across DeFi ecosystems. Its robust framework caters to 430+ applications, such as decentralized exchanges (DEXs), lending protocols, and derivatives 

Where to Buy Pyth (PYTH) Coin? 

As of 2024, several cryptocurrency exchange platforms provide Pyth Network (PYTH) tokens. 

• Active trade on these exchanges is: Binance, FTX, and Kraken. All of these are centralized exchanges (CEX), providing a wide range of services on trading and management of cryptocurrencies.

• For decentralized Exchanges, Uniswap and Sushiswap accept trading of PYTH tokens, thus giving users relatively more flexibility of using a decentralized exchange (DEX).

• In terms of accessible platforms in the United States, Pyth Network can be traded by users through very popular exchanges, including Kraken, Binance.US, and FTX.

• Some examples of common trading pairs for Pyth Network tokens:

PYTH/USDT

PYTH/USD

PYTH/BTC

PYTH/ETH.

 

Top wallets for PYTH Coins

Security, ease of use, features, and transaction fees are a few things to consider when selecting the best wallet for storing Pyth Network tokens. Multiple wallets support Pyth Network, with each of them offering users certain benefits based on preference.

 Some of the leading wallets include TokenPocket, Assure Wallet, and Coinhub which are famous for their tough security feature and simplicity.

OKX Wallet, Solflare, SimpleHold Wallet, Coin98, and Wirex Wallet are among other wallets that are popular for their efficiency in the functionality both as storage and management of PYTH tokens. Each has its advantages, so users should choose the right one based on factors, such as whether they are compatible across different platforms and how they charge fees.

Understanding PYTH Coin(Pyth network) Tokenomics

Functionality and Governance of PYTH Token:

• The PYTH Token builds a decentralized, self-propelling ecosystem around the Pyth Network.

• On-chain governance allows token holders to make informed decisions regarding the evolution of the protocol, including the fee structure, reward mechanisms, and privileges of data providers.

• The Pyth DAO is responsible for governance and can propose new topics for decision-making.

 Pyth Token Dynamics at a Glance:

• Total supply: 10 billion PYTH tokens.

• Initial Supply in Circulation: 1.5 billion(15% of total supply).

• Vesting Schedule: 85% of tokens are locked to unlock progressively after 6, 18, 30 and 42 months.

• As of 2024, the Pyth Network token (PYTH) reached its all-time high of $1.20 on March 16, 2024, and experienced an all-time low of $0.2235 on August 5, 2024.

 Allocation Categories:

• Publisher Rewards (22%): This category is meant for data providers to provide incentives for accurate and timely price updates. It has currently unlocked only 2% of its total tokens.

• Ecosystem Growth (52%): Budgets research, education, and developer efforts. This has 13% unlocked of its tokens.

• Protocol Development (10%): Support the core contributors in building the tools and infrastructure. Currently 15% unlocked of this allocation. 

• Community and launch (6%): This has been fully unlocked and allocated for initial activities and promotions.

• Private Sales (10%): Strategic contributors from the previous rounds of funding, it will follow the vesting schedule.

 Scope of Governance: 

The governance framework, as stated in the white paper, entails the following:

• Sizes of fees for updates. 

• Distribution mechanisms for rewards. 

• Permissions for data providers. 

• Submission of new price feeds and defining their technical specifications. 

How does Pyth Network(PYTH) Work?

The Pyth Network is a decentralized financial oracle that addresses the limitations faced by past and present traditional data distribution models in the blockchain space. Traditional oracles often rely on  Cheap open-source and  Web2 financial data that are not suited to the blockchain due to legal cost and quality issues. For instance, financial data is protected often by very stiff laws of IP, and high-quality data are costly but mostly demand Premium subscriptions.

Instead, Pyth relies upon first-party data in that it announces the incentives of the original creators of such financial data to directly input them on the blockchain. Here Pyth also creates a marketplace in which these data providers, like exchanges or financial institutions, offer their proprietary data to be utilized in smart contracts by users of the blockchain.

The major contrast that differentiated Pyth from a legacy oracle is that while a legacy oracle gets data from third parties and thus faces scalability and legal issues, Pyth's direct data sourcing ensures high-quality, real-time, and legally compliant data for decentralized finance (DeFi) applications. Besides cost advantages and increased speed in application, this decentralized model from the network also eliminates all intermediary needs. In addition, Pyth's first-party strategy allows it to march into new asset classes, such as energy or real-world assets, which do not have widely available data sources.

Similar to the music streaming services' revolution, it mirrors the evolution that which Pyth is seeing: empowering artists to distribute directly, without having to use all forms of models that were initially pioneered by the likes of Napster. Now with more than 90 first-party data providers, Pyth positions itself as a scalable solution for the Web3 capital markets, offering a future-proof path of data distribution for the growing DeFi ecosystem.

What are the Key Products That Pyth Network Offers?

The Pyth Network offers two flagship products for DeFi: Pyth Price Feeds and Pyth Benchmarks, designed to provide accurate and reliable financial data for blockchain applications.

Pyth Price Feeds  Deliver over 350 low-latency updates for assets like cryptocurrencies, FX rates, equities, ETFs, and commodities, refreshing every 400ms. Each feed includes a spot price and a confidence interval, offering users a range within which the true price likely lies. This confidence interval enhances decision-making and supports safer smart contract operations, adapting to market liquidity conditions.

Pyth Benchmarks: Provide historical price archives, enabling users to access reference rates, indices, and financial standards like Bitcoin reference rates or S&P500 indices. These benchmarks ensure consistency in calculations and settlements, serving use cases like decentralized options vaults (e.g., Aevo on Ethereum) and perpetual trading (e.g., Synthetix on Optimism). Integration with Pyth data is permissionless, reflecting its alignment with Web3 principles and accessibility for developers.

Who are the Founders of PYTH Network(PYTH)?

The aim of Pyth-a decentralized finance institution-based pricing data to launch via blog entry dated April 7, 2021-introduced by a short incubation period in Jump Trading and exited, as of July 2023, into Douro Labs. Douro Labs was founded by Cahill, Krishnamurthy, and Cronin to bring the project further.

The news encourages the Pyth to run with the mainnet on August 26, 2021, when it starts operating on Solana. This enables price feed support for more than 30 in its number of crypto assets, in integration with other networks, like Ethereum, as well as Terra. By 2021, Pyth had 55 price feeds and had collaborated with over 40 price data sources.

The PoA network based on the Solana codebase is known as Pythnet and was developed on August 1, 2022. Later, on October 10, 2022, Pyth crossed borders through Wormhole to connect to all other blockchains, bringing up its number to eight at the year's end.

In 2023, Pyth will launch a retrospective airdrop of the PYTH token. The airdrop will reward DeFi users, community members, and partner protocols. Airdrop will be launched on November 20, 2023, together with the on-chain governance framework from Pyth.