Pyth Network: Incentivizing Web3 data creation

Pyth network is a “high-frequency price Oracle that publishes high-frequency price update” sources from reputable market makers, exchanges, and other data providers. Jayant Krishnamurthy, a contributor at Pyth Network, shared at the Breakpoint event that the Pyth Network functions by accessing data from exchanges and crypto platforms like Binance and FTX. 

One reason behind Pyth is that DeFi products and services need data that is true, real-time, and of low latency, the Pyth Network officially explained. Thus they had to connect directly with those who produced this data.

The Pyth team wants DeFi products to have access to premium data at a very low cost, he added. An example is the metadata for the “degree of uncertainty” of the price for an asset per time and we get these from traders and market makers too.

77 data providers, 5 continents, and a $25 billion trades volume

According to Jayant, some of the progress the team has made include increasing the source of data from 30 to 77 others; becoming the data source of some of Solana’s biggest apps; currently services products across five continents; $780 million of total value secured, and enhanced $25 billion of total traded volume.

The team has also launched a cross-chain pricing system from Pyth network which was achieved using Wormhole, which makes cross-chain communication easy and fast, Jayant added.

Speaking on the future of the Pyth Network, Jayant explained that there is a plan to introduce incentives for data providers. This incentive will be in the form of crypto so that they can keep providing honest and real-time data. Another addition will be data sources from lending protocols as well as AMM for consumers.

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