How Pyth Network is Helping Protocols on Solana

Using a next-generation Oracle solution, Pyth seeks to make valuable financial market data available to everyone.

Next-Generation Oracle Solution

Pyth Network, the next-generation oracle solution, collaborates with Solana protocols, providing first-party price data for on-chain applications.

Pyth Network has been powering multiple prominent protocols on Solana, including 01 exchange, Bonfida, Zeta, Friktion, and Solend. Access and distribution of live and historical financial market data are still controlled by very few players and are hard to access. The Pyth network aims to make this valuable financial market data accessible to everyone through a next-generation Oracle solution.

“We’re proud to support and empower so many innovative use cases across the Solana ecosystem. Pyth has always been about bridging the gap between DeFi and what TradFi is capable of,” Pyth Network shared with Web3Wire. “Our next steps are to make our high-fidelity data feeds available across other chains through Wormhole. We aim to support builders from any ecosystem and to bring them the best data to power what they’re building.”

Diverse Use Cases

Let’s have a look at how Pyth is helping some protocols on Solana:

Bonfida:  One of the core products offered by Bonfida is the Solana Name Service (SNS). In order to provide users with a better experience, Bonfida offers SNS with nine different assets, including $SOL, $FIDA, $USDC, and $SRM. With the addition of Pyth price feeds, Bonfida further ensures that fair prices are applied regardless of the different currency options available.platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-11&features=eyJ0ZndfZXhwZXJpbWVudHNfY29va2llX2V4cGlyYXRpb24iOnsiYnVja2V0IjoxMjA5NjAwLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X3NlbnNpdGl2ZV9tZWRpYV9pbnRlcnN0aXRpYWxfMTM5NjMiOnsiYnVja2V0IjoiaW50ZXJzdGl0aWFsIiwidmVyc2lvbiI6bnVsbH0sInRmd190d2VldF9yZXN1bHRfbWlncmF0aW9uXzEzOTc5Ijp7ImJ1Y2tldCI6InR3ZWV0X3Jlc3VsdCIsInZlcnNpb24iOm51bGx9fQ%3D%3D&frame=false&hideCard=false&hideThread=false&id=1525129680336175105&lang=en&origin=https%3A%2F%2Fwww.web3wire.news%2Fpost%2Fhow-pyth-network-is-helping-protocols-on-solana&sessionId=d29559161b54ef96cae0eb9d34da1ddd30a7c554&theme=light&widgetsVersion=c8fe9736dd6fb%3A1649830956492&width=550px

We love to power products that make builders’ lives easier 🔮

Bonfida showcases an interesting way to be #PoweredByPyth

Learn more in the 🧵👇 t.co/ZMBKBEqmkd— Pyth (we’re hiring!,🔮) (@PythNetwork) May 13, 2022

Zeta: Zeta receives per slot asset price updates for their Decentralized Exchange(DEX) from the Pyth Network oracle. The goal is to make sure their on-chain pricing is accurate and that their platform security mechanisms are working as expected. Further, Zeta’s option contracts have expiration dates, so a settlement price is required. The protocol relies on the Pyth Network to make settlement prices available for their DEX and their FLEX products.platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-12&features=eyJ0ZndfZXhwZXJpbWVudHNfY29va2llX2V4cGlyYXRpb24iOnsiYnVja2V0IjoxMjA5NjAwLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X3NlbnNpdGl2ZV9tZWRpYV9pbnRlcnN0aXRpYWxfMTM5NjMiOnsiYnVja2V0IjoiaW50ZXJzdGl0aWFsIiwidmVyc2lvbiI6bnVsbH0sInRmd190d2VldF9yZXN1bHRfbWlncmF0aW9uXzEzOTc5Ijp7ImJ1Y2tldCI6InR3ZWV0X3Jlc3VsdCIsInZlcnNpb24iOm51bGx9fQ%3D%3D&frame=false&hideCard=false&hideThread=false&id=1525476891871830026&lang=en&origin=https%3A%2F%2Fwww.web3wire.news%2Fpost%2Fhow-pyth-network-is-helping-protocols-on-solana&sessionId=d29559161b54ef96cae0eb9d34da1ddd30a7c554&theme=light&widgetsVersion=c8fe9736dd6fb%3A1649830956492&width=550px

1/n

We are proud to leverage the @PythNetwork Oracle across our DEX and FLEX products.

Here is how we are #PoweredbyPyth🔮

🧵— Zeta (@ZetaMarkets) May 14, 2022

Friktion: With Friktion’s Volts, users can implement automated, risk-aware yield strategies such as covered calls, cash secured puts, volatility harvesting, and basis yielding. In their new Entropy Trade platform for power and volatility perpetuals, Friktion leverages Pyth’s prices to determine funding rates on BTC²-PERP.platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-13&features=eyJ0ZndfZXhwZXJpbWVudHNfY29va2llX2V4cGlyYXRpb24iOnsiYnVja2V0IjoxMjA5NjAwLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X3NlbnNpdGl2ZV9tZWRpYV9pbnRlcnN0aXRpYWxfMTM5NjMiOnsiYnVja2V0IjoiaW50ZXJzdGl0aWFsIiwidmVyc2lvbiI6bnVsbH0sInRmd190d2VldF9yZXN1bHRfbWlncmF0aW9uXzEzOTc5Ijp7ImJ1Y2tldCI6InR3ZWV0X3Jlc3VsdCIsInZlcnNpb24iOm51bGx9fQ%3D%3D&frame=false&hideCard=false&hideThread=false&id=1526004868980277250&lang=en&origin=https%3A%2F%2Fwww.web3wire.news%2Fpost%2Fhow-pyth-network-is-helping-protocols-on-solana&sessionId=d29559161b54ef96cae0eb9d34da1ddd30a7c554&theme=light&widgetsVersion=c8fe9736dd6fb%3A1649830956492&width=550px

Ever wondered what infrastructure powers Friktion and Entropy (t.co/iBfapww2Fz)?
Let’s dive into how we utilize @PythNetwork‘s powerful oracles! #PoweredByPyth ⚡️ 🔮
1/🧵 pic.twitter.com/QHGHxEEB1q— Friktion⚡ in Austin! (@friktion_labs) May 16, 2022

01 Exchange: Using the Pyth Network Oracle, 01 Exchange can determine accurate index prices, which are used for funding payments across perpetual futures and power perpetuals. In this way, they can ensure that their margining system and liquidation process function efficiently. https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-14&features=eyJ0ZndfZXhwZXJpbWVudHNfY29va2llX2V4cGlyYXRpb24iOnsiYnVja2V0IjoxMjA5NjAwLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X3NlbnNpdGl2ZV9tZWRpYV9pbnRlcnN0aXRpYWxfMTM5NjMiOnsiYnVja2V0IjoiaW50ZXJzdGl0aWFsIiwidmVyc2lvbiI6bnVsbH0sInRmd190d2VldF9yZXN1bHRfbWlncmF0aW9uXzEzOTc5Ijp7ImJ1Y2tldCI6InR3ZWV0X3Jlc3VsdCIsInZlcnNpb24iOm51bGx9fQ%3D%3D&frame=false&hideCard=false&hideThread=false&id=1526910865668198401&lang=en&origin=https%3A%2F%2Fwww.web3wire.news%2Fpost%2Fhow-pyth-network-is-helping-protocols-on-solana&sessionId=d29559161b54ef96cae0eb9d34da1ddd30a7c554&theme=light&widgetsVersion=c8fe9736dd6fb%3A1649830956492&width=550px

You know what would suck Bytes? For our Prices to be way off… Luckily, we are powered by @PythNetwork for that not to happen 🤝

Let’s talk a bit about how we are #PoweredByPyth🧵👇 pic.twitter.com/GmUZqBvmPS— 01.xyz (@01_exchange) May 18, 2022

Solend: Solend is an algorithmic, decentralized lending and borrowing protocol. Solend allows anyone to: earn interest, borrow, leverage long, or leverage short. Using Pyth’s price feeds, Solend identifies a user’s account health and marks unhealthy positions for liquidation.platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-15&features=eyJ0ZndfZXhwZXJpbWVudHNfY29va2llX2V4cGlyYXRpb24iOnsiYnVja2V0IjoxMjA5NjAwLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X3NlbnNpdGl2ZV9tZWRpYV9pbnRlcnN0aXRpYWxfMTM5NjMiOnsiYnVja2V0IjoiaW50ZXJzdGl0aWFsIiwidmVyc2lvbiI6bnVsbH0sInRmd190d2VldF9yZXN1bHRfbWlncmF0aW9uXzEzOTc5Ijp7ImJ1Y2tldCI6InR3ZWV0X3Jlc3VsdCIsInZlcnNpb24iOm51bGx9fQ%3D%3D&frame=false&hideCard=false&hideThread=false&id=1527666573917491203&lang=en&origin=https%3A%2F%2Fwww.web3wire.news%2Fpost%2Fhow-pyth-network-is-helping-protocols-on-solana&sessionId=d29559161b54ef96cae0eb9d34da1ddd30a7c554&theme=light&widgetsVersion=c8fe9736dd6fb%3A1649830956492&width=550px

Did you know that the largest borrow-lending platform on Solana is #PoweredByPyth ⁉️

We are proud to support @solendprotocol’s climb to the #1 spot for TVS on @solana 🔮

Learn more in the 🧵 👇 t.co/8h4vfJFmqz— Pyth (we’re hiring!,🔮) (@PythNetwork) May 20, 2022

For Decentralized Finance (DeFi) to grow, we need high-fidelity, real-world data that is made available on any L1 blockchain straight from the source. Unfortunately, the availability of financial market data is often restricted to a small number of institutions and users. Pyth offers valuable financial market data to the general public by incentivizing market participants – trading companies, market makers, and exchanges. 

Participants share price data directly on-chain, gathered as part of their existing operations. Eventually, the network aggregates this first-party price data (still on-chain) and makes it available for both on-chain and off-chain applications.

What is Pyth Network:

The Pyth Network is a specialized Oracle solution for latency-sensitive financial data. The network is focused on developing a new and low-cost method of bringing this unique data on-chain and securely aggregating it. The Pyth Data Association was founded to support the Pyth network and is governed by a board of directors elected by Pyth network members.

Learn more about Pyth network:

Twitter | Website | Discord | Telegram 

Source : web3wire.news

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