In modern financial markets, participants have access to a variety of asset types, each with its own unique characteristics. Traditional financial institutions usually provide trading opportunities in foreign exchange, stocks, exchange-traded funds (ETFs), futures, options and derivatives. However, with the rise of decentralized finance (DeFi), new asset types have emerged on the market, such as cryptocurrencies, stablecoins, non-fungible tokens (NFTs), perpetual contracts, and synthetic assets. These innovations provide investors and developers with more opportunities, but they also bring many challenges.
The difference between traditional finance and decentralized finance
While the DeFi market is similar in some respects to traditional financial markets, there is a significant gap in the coverage of asset types. This gap affects not only individual investors but also institutional investors’ participation in Web3 capital markets. The operation of smart contracts relies on infrastructure such as oracles to obtain financial data from cryptographic and traditional markets. However, many existing oracle solutions are primarily focused on cryptocurrencies and digital assets, resulting in insufficient support for other non-crypto asset types.
The rise of Pyth Network: Pyth Network was born to solve this problem. As a financial oracle, Pyth Network is committed to seamlessly obtaining data on traditional and decentralized financial assets. This capability provides DeFi developers with more on-chain construction opportunities and opens up a whole new world of transaction possibilities.
Assets needed to support developers
To date, Pyth Network has provided over 400 instant feeds to over 50 blockchains on EVM, Cosmos, Move, and Rust-based blockchains such as Solana. The data is updated every 400 milliseconds, meaning more than 200,000 updates per day. This allows DeFi applications to have access to the latest and most timely price information. What's more, developers can integrate this data without permission, without having to contact a sales team or sign a contract.
Cryptocurrency (Crypto) Cryptocurrency is a virtual currency that relies on encryption technology, and is mainly divided into coins and tokens. Coins are digital assets that run on their own independent blockchains, such as Bitcoin (BTC) and Litecoin (LTC), while tokens are assets created through smart contracts on existing blockchains. Pyth Network provides low-latency feeding data for cryptocurrencies such as Bitcoin, Ethereum, Ripple, Cardano, and Solana.
The foreign exchange market is a place for global currency exchange, with an average daily trading volume of more than 6 trillion US dollars. Pyth Network provides real-time data on G7 currencies (such as Canadian dollars, euros, Japanese yen, British pounds, US dollars) and emerging market currencies, allowing investors to hedge international currency and interest rate risks.
Equities
Equity represents ownership of a company and is usually traded through the stock market. Pyth Network is the only oracle that provides real-time market data on US stocks, covering stocks of well-known companies such as Apple, Microsoft and Amazon. This provides investors with the opportunity to capture the financial success of the company.
ETFs (Exchange Traded Funds) Exchange Traded Funds (ETFs) are diversified portfolios of securities traded on stock exchanges around the world through brokerage firms. Pyth Network provides real-time data on well-known ETFs such as SPDR S&P 500 ETF Trust and Invesco QQQ Trust Series 1 to help investors flexibly allocate assets.
Commodities Commodities are fungible standardized assets, including agricultural products, energy resources, precious metals, etc. Pyth Network supports feeding data for commodities such as gold and silver, which provides investors with tools to hedge against inflation and market volatility.
Start integrating Pyth data
Providing smart contract developers with the integration of real-world and digital assets is key to the development of the decentralized financial industry. Pyth Network is designed so that the integration process is simple and seamless, and developers only need to review the developer documentation to get started.
Please continue to follow the official social channels of Pyth Network to get the latest price feed data release information. You can also view the full catalog of Pyth price feeds to learn about upcoming asset feed prices.
Conclusion
The emergence of Pyth Network marks an important advancement in the field of decentralized finance. It not only fills the gap between traditional finance and DeFi, but also provides developers and investors with more choices. As the DeFi ecosystem continues to evolve, Pyth Network will continue to play its key role in driving innovation and progress in financial markets. By integrating Pyth's real-time data, developers can provide better services to users, thereby driving the entire industry to flourish.