Pyth Network Q1 Summary: Data usage continues to grow, and traditional finance is entering

Written by: Pyth

Compiled by: Xiaobai Navigation coderworld

The Internet has changed rapidly over the past year.

In the Web3 space, decentralized finance is experiencing a renaissance led by perpetual derivatives, hybrid scaling methods, liquidity staking, and Meme coin culture. DeFi has become popular again, and the entire ecosystem is feeling the crazy market.

At the same time in the Web2 field, large language models and generativeAIContent is changing the way content creators and consumers interact. “AI-driven” tools don’t explain where their answers come from; foot traffic and ad revenue aren’t flowing to original proprietary datasets. As data owners privatize their content to monetize it, the open internet is likely to shrink.

What is the status of the Pyth network in the current situation?

Python contributors envision a world in which intelligentcontractDevelopers and general internet builders can access market data instantly as it is created. The value of financial data (asset prices, recent trades, recent buy and sell information) depreciates rapidly over time. Financial applications, DeFi or CeFi are only as valuable as the data that protects their operations.

In a world where data privatization has become the new normal, acquiring, scraping, or copying public data to pass it downstream is no longer a good idea.BlockchainThe user solution is unsustainable. Even the encrypted trading data on CEX requires payment to be adopted.

As decentralized finance expands and traditional capital market systems begin to adopt on-chain rails and tools, the role of data oracles becomes increasingly important.

Pyth Network is more than 55BlockchainIt provides services to more than 330 applications on the Internet, with a cumulative trading volume of more than US$300 billion, and currently provides real-time price information for more than 500 traditional and digital asset classes.

The driving factor behind this growth is Python’s ability to scale to wherever developers live, deliver the data they need wherever they choose to build, and meet the needs of an audience that has grown up on Web2 without compromising on reliability, accuracy, and latency requirements.

The way we behave online and on-chain is constantly changing: even so, the Python network is still ensuring the value we transact around the worldSafety, and power the applications we rely on. This post highlights the latest achievements and growth of the oracle network over the past quarter.

Emphasis

Who is not powered by Pyth?

Who isn’t powered by Pyth today? According to the latest statistics from DefiLlama, the Pyth network protects a quarter of DeFi protocols. As measured by Pyth contributors, the proportion is much higher: more than 330 on-chain and off-chain applications rely on Pyth data for mission-critical operations.

The main drivers driving adoption of the Pyth price feed are: low latency updates, comprehensive asset coverage, and a full suite of usability on all the chains developers want to build on.

Delay is important for accuracy andSafetyThis is crucial. This has always been a core principle of Pyth. Price updates every 400 milliseconds make the next generation of DeFi services possible.

Asset selection also makes a big difference for protocol founders. From newly launched digital assets to more traditional tools, developers seek to provide markets and services that their users demand. Traders appreciate this choice.

By extension, a full suite of 500+ Python price sources is available on all Python-supportedBlockchainAvailable everywhere, meaning developers can reach their users’ favorite markets, no matter where they choose to deploy.

Banks are joining Python

The Pyth Network sources data from first-party sources and active market participants: traders, market makers,exchangeBy March 2024, the banking community will also begin to join the Pyth network's mission.

Nomura’s digital assets subsidiary Laser Digital joins Pyth data providerCommunity, contributing its own digital and traditional asset price data to enhance the data coverage of the oracle network. Laser Digital is not only the first bank in the banking industry to join PytXiaobai Navigationh network, but also participate in the Web3 world as a direct and real-time price data contributor.

Laser Digital joining the Pyth data provider community is a major milestone for traditional finance and DeFi. Pyth oracles provide a unique channel for traditional banking to explore the on-chain world. In turn, decentralized finance also benefits from enhanced access to market data —.

New Python product launch: Entropy

Pyth Entropy, a new on-chain random number generation solution for driving unpredictable outcomes, has been released on EVM mainnets, including on Arbitrum, Blast, Chiliz Chain, Mode, LightLink, and Optimism.

While existing on-chain RNG solutions already exist, they require strong trust assumptions or complex cryptography. Pyth Entropy is based on a reveal protocol based on two-party commitments — a well-known RNG protocol in the cryptography space. Entropy is designed to be easy to integrate, reliable, and responsive.

Entropy aims to protect a range of decentralized use casesSafety: Prediction markets, NFT and generative art, social media and games, etc. Some decentralized applications have begun to integrate with Entropy, such as SlashToken on Chiliz Chain, and FLAP and Fungible Flip on Blast.

Python committee elected, Python governance takes the lead

Python GovernanceResponsible for important protocol parameters, from updating fees to reward distribution mechanisms for data providers, as well as software updates for on-chain programs and how to list price feeds on Pyth.

The Pythian Committee and the Price Source Committee are composed of Pyth DAOElections, these two committees will be empowered to perform specific powers and important actions.

The Pythian Committee consists of eight members who are the Pythian multi-signaturewalletThe Pyth Improvement Proposals (PIPs) that can be delegated to this committee include upgrading oracle programs, setting data request fees for each blockchain, and other protocol or network fees. The Pyth DAO Constitution explains the roles, powers, and procedures of governance.

On March 7, the Pythian Council members were elected and approved by the Pyth DAO. Members come from Synthetix, HMX, Wormhole Foundation, Douro Labs, Solend, and the Pyth Data Association.

The Price Feed Committee consists of seven members who will be signatories of the Price Feed multi-signature wallet. PIPs that can be delegated to this committee may include managing the list of price feeds available through Pyth, selecting data providers, setting a minimum number of data providers per price feed, etc.

On March 29, the members of the Price Feed Committee were also elected and approved by Pyth DAO. Members come from Synthetix, NOBI, Douro Labs, Swissborg, ReactorFusion, and Pyth Data Association.

The Operational Pyth Improvement Proposal has been passed. Community members can stake their PYTH for governanceTokenParticipate in on-chain governance and help shape the network together.

Python Airdrop Review: Phase 2

Pyth网络回顾性空投计划的第一阶段于2023年11月宣布。PYTH代币在此初始阶段分发给了27个区块链和200个应用程序的90,000多个钱包。

The second phase of the airdrop oversaw the distribution of PYTH tokens to over 160 decentralized applications powered by Pyth data. These protocols span the EVM, Cosmos, Rust, and Move ecosystems and rely on Pyth to support their exchanges, settlements, and transactions.

Readers can expect announcements from many of these applications’ contributors and founders on how they plan to use their allotments.

Douro Labs’ Research on Liquidation Fragmentation

Douro Labs contributors say in their MEV (“Maximum Extractable Value”) research article series that DeFi doesn’t have to be a dark forest.

Their first paper provides a taxonomy of MEV and refutes the view that MEV is inevitably or necessarily opaque. In fact, MEV is a suboptimal protocol design arising from a trade-off between value capture and complexity. An examination of different MEV mitigation techniques shows that a solution is needed that reduces both protocol and searcher complexity.

More specifically, the current state of protocol design acknowledges the pain points of both parties: liquidations often leak value to miners unnecessarily; and searchers must deal with the fragmentation of liquidations between protocols.

Click here, this research series and its development can be found.

Active Pythian community

The Pythian community is entering a new golden age. The Pyth Discord now has over 80,000 Pythians - up 1,20% since January 1st. All newcomers are welcome. Discord is the place for Pyth DAO members, Pyth governance, and Web3 denizens to relax and share ideas with like-minded people.

The Pyth social channels host many regular events, from Poker Nights to Mindful Mondays. The Discord hosts regular UFC watch parties, gaming hours, and other events for everyone to join in. Ideas for community events are always welcome, be bold and say hello to the admins!

Ecosystem data

The Python Network Today

许多人将Pyth生态系统比作AirBnB模式或Spotify流媒体服务的金融数据：关键数据的创作者和所有者可以参与Pyth去中心化市场的经济活动。下游用户从安全的直接访问中受益，并且随着时间的推移，可以选择更多的资产。

Today, the Pyth oracle network sources data from market makers, proprietary trading firms, decentralized exchanges, centralized and traditional liquidity venues, and more recently, investment banks and fintech players.

Data users cover a wide range of DeFi infrastructure: decentralized exchanges, perpetual futures and derivatives, lending platforms, structured product vaults, stablecoin protocols, transaction data analysis, decision-making intelligence solutions, etc.

The growth metrics below provide data visualizations showing the growth of the Python network this quarter and over the past year, from adoption to feature offerings.

The Pyth network has been integrated with more than 330 Web3 and Web2 applications. This figure indicates that user growth has reached at least 175% TTM.

“Identified” is a nod to the permissionless nature of integration with the Pyth price feed. In line with Web3’s mission, any protocol can leverage Pyth’s price data without contacting the sales team. In other words, any application can be powered by Pyth without letting Pyth contributors know. Therefore, application integration counts are always conservative estimates.

Unification of the world on the chain

The Python Network is a leader in this mission, serving 56 blockchains, ensuring constant, reliable access to hundreds of low-latency data sources on each chain.

多年来，Pyth的贡献者发现，智能合约开发者对DeFi的最终愿景是一致的：一种抽象化当前流动性碎片化、区块链互操作性和服务访问复杂性的无缝体验。

Pyth’s cross-chain oracle approach enables DeFi applications to focus on providing the best user experience without having to worry about the blockchain they choose. This is a critical first step in bringing DeFi to where it needs to be: mainstream and hidden, powering the things that matter in our daily lives.

Trading volume reaches record high

The total volume secured by Pyth oracle data is another good metric for tracking usage and adoption. In early April, the cumulative volume secured by the Pyth network over the lifetime of the oracle protocol exceeded $300 billion.

March was an exceptionally active month for Python-powered applications, particularly for the Solana, Arbitrum, Optimism, and Blast ecosystems. This month alone, Python oracles secured $87 billion in volume.

The value of Python's guarantee

Total Value Secured (TVS) is an oracle-driven subset of the Total Value Locked (TVL) of smart contracts. TVS primarily tells a story about lending and pool-based operations. In March, the Python network’s TVS exceeded $7 billion. The continued growth of Python-powered TVS shows the resurgence of DeFi as an industry influx looks like the next bull run, as well as the growing appeal of Pyth price feeds in perpetuals and trading outside of DeFi.

Your new choice of oracle

However, Total Value Secured (TVS) as a standalone metric does not indicate the actual growth of oracles due to the situational nature of the metric. If TVL grows due to macro considerations, then the TVS of oracles should rise accordingly.

The Pyth TVS above is pressed L1/L2The chart provides important additional framework: the total secured value (oracle-driven TVL) of any blockchain provides another way to proxy oracle market share. Consider the chains where the Python network dominates in TVS, from the Move space (Aptos and Sui) to Cosmos (Sei, Injective, and Osmosis) to ZK chains like zkSync and Linea. In these chains, Python oracles secure the vast majority of locked value in the applications, demonstrating that Python is the oracle of choice in these ecosystems.

However, TVS only tells one side of the growth story. The low latency and high fidelity data capabilities of the Pyth network make it the oracle of choice for many derivatives applications, which typically generate a lot of volume and do not have a lot of TVL metrics. Therefore, looking at the percentage of overall volume secured at a certain point in time, Pyth's dominance on more blockchains can be seen.

L1/L2The secured volume chart above highlights the DeFi ecosystems where Pyth is the first and foremost oracle provider. In other words, there are blockchains where Pyth is the leading DeFi oracle supporting transaction-based activity. One can see this dominance in the Cosmos and Move worlds as well as high-throughput alternative L1 and L2 such as Injective, Linea, Mode, and Fantom.

All DeFi is calling Python

Pyth data providers transmit price data to the Pythnet application chain every 400 milliseconds. Whenever a user wants to use a price update and verify that it came from Pythnet, they need to pay a small on-chain fee and pull that price into their environment for everyone to use.

The number of price update requests or pulls can provide insight into activity in the DeFi industry as a whole and in specific blockchain ecosystems. The above chart shows the average daily average number of price updates (DAU), with approximately 3 million updates. While oracle update fees are currently minimal, Pyth governance can vote on the size and denomination of these fees. Revenue generated by the Pyth protocol currently sits on-chain; collective governance will decide the next course of action.

More data sources

The Pyth network now offers over 500 real-time price feeds covering digital assets, forex pairs, metals, stocks, and exchange-traded funds. More data sources means more available markets and features for protocol developers to launch.

The community continues to request many other assets, including those not available on-chain. For example, providing price feeds for traditional assets like energy, agriculture, and even Treasury rates could potentially unlock on-chain portfolio diversification strategies that meet the needs of sophisticated participants.

The article comes from the Internet:Pyth Network Q1 Summary: Data usage continues to grow, and traditional finance is entering

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