Pyth Network (PYTH)

Pyth Network is an oracle that publishes financial market data to multiple blockchains.

Basics

• Based in:
• Started in / Announced on:
• Testnet release:
• Mainnet release:

Audits & Exploits

• Bug bounty program can be found here worth $500k USDC (7-3-2023).
• From their docs (2-3-2023):

"The Pyth software has undergone a number of audits from different firms. All of the audit reports are available in the audits github repository."

Governance

• From their docs (12-2022):

"Pythnet is powered by Solana technology: it runs the same validator software, but is a separate network that is specially configured to be a proof-of-authority chain. The network depends on a tightly controlled supply of the chain's native token, called PGAS, which is currently controlled by the Pyth Data Association. Once governance is live, it will take over management of the PGAS token from the Pyth Data Association."

Token

Launch

• From their Telegram (17-1-2023):

"There have been no announcements about fundraising, tokens, or anything of the sort."

Technology

• Whitepaper or docs can be found here (5-2022).
• Code can be viewed [insert here].
• From their docs (2-3-2023):

"Price feeds are available on multiple blockchains and can also be used in off-chain applications. Pyth offers two sets of price feeds for different applications:

1. Solana Price Feeds are available in mainnet for Solana
2. Pythnet Price Feeds are available in mainnet for most EVM chains, including Ethereum, BNB, Avalanche, and more. These feeds are also available in Aptos mainnet and will be coming soon to Cosmos chains and other ecosystems."

How it works

• From their docs (2-2023):

"The protocol is an interaction between three parties:

1. Publishers submit pricing information to Pyth's oracle program. Pyth has multiple data publishers for every product to improve the accuracy and robustness of the system.
2. Pyth's oracle program combines publishers' data to produce a single aggregate price and confidence interval.
3. Consumers read the price information produced by the oracle program.

Pyth's oracle program runs simultaneously on both Solana mainnet and Pythnet. Each instance of the program is responsible for its own set of price feeds.

The critical component of the system is the oracle program that combines the data from each individual publisher. This program maintains a number of different Solana accounts that list the products on Pyth and their current price data. Publishers publish their price and confidence by interacting with the oracle program on every slot. The program stores this information in its accounts. The first price update in a slot additionally triggers price aggregation, which combines the price data from the previous slot into a single aggregate price and confidence interval. This aggregate price is written to the Solana account where it is readable by other on-chain programs and available for transmission to other blockchains."

Fees

• From their docs (3-2022):

1. "Publishers publish price feeds and earn a share of data fees in exchange. Publishers are typically market participants with access to accurate, timely price information. The protocol rewards publishers in proportion to the quantity of new pricing information that they share.
2. Consumers read price feeds, incorporate data into smart contracts or dApps, and optionally pay data fees. Consumers can either be on-chain protocols or off-chain applications.
3. Delegators stake tokens on a specific product and publisher to earn a share of the data fees in exchange for potentially losing their stake if the oracle is inaccurate."

Staking

• From their docs (12-2022):

"Pythnet is powered by Solana technology: it runs the same validator software, but is a separate network that is specially configured to be a proof-of-authority chain. The network depends on a tightly controlled supply of the chain's native token, called PGAS, which is currently controlled by the Pyth Data Association. Operating a validator on the network requires a large stake of PGAS tokens. The Pyth Data Association allows each data provider to operate one validator by delegating them the necessary stake. Each data provider is then given a sufficient quantity of PGAS tokens to publish prices to the network. The network is configured such that account creation is very expensive, preventing anyone without a substantial quantity of PGAS from deploying programs to the network. Once governance is live, it will take over management of the PGAS token from the Pyth Data Association. The Pythnet blockchain has built-in redundancy to ensure high availability: it is operational as long as 2/3+ of Pythnet validators are online."

Interoperability

• From their docs (12-2022):

"Pythnet is an application-specific blockchain operated by Pyth's data providers. This blockchain is a computation substrate to securely combine the data provider's prices into a single aggregate price for each Pyth price feed. Pythnet forms the core of Pyth's off-chain price feeds that serve all blockchains (except Solana mainnet). The Pyth protocol needs to be able to combine these prices to produce a single aggregate price. This computation needs to be performed securely -- prices must be combined correctly -- and reliably -- prices must always be available for applications. Pythnet solves both of these problems. First, anyone can validate that the price computation is done correctly by replaying the network's transaction log. The Wormhole guardians perform this validation when constructing the Pyth price update messages that are delivered to other blockchains. Consequently, as long as 2/3+ of the Wormhole guardians are honest, users of Pyth prices can trust that they were computed accurately."

Oracle Method

• From their docs (2-3-2023):

"Our market data is contributed by over 70 first-party publishers, including some of the biggest exchanges and market making firms in the world. We offer price feeds for a number of different asset classes, including US equities, commodities, and cryptocurrencies."

According to a Dune Dashboard there were 44 of the publishers actually active last week (7-3-2023).

• From their docs (12-2022):

"Pythnet is powered by Solana technology: it runs the same validator software, but is a separate network that is specially configured to be a proof-of-authority chain. The Pyth Data Association allows each data provider to operate one validator by delegating them the necessary stake. Each data provider is then given a sufficient quantity of PGAS tokens to publish prices to the network. Once governance is live, it will take over management of the PGAS token from the Pyth Data Association."

Roadmap

• Can be found [Insert link here].

Revenue

• During the month of February 2023, around 50 SOL per day.

Usage

• According to a Dune Dashboard there were 82 daily active consumers (1-2023), mainly Solana based project. It also stated ~3000 daily active users (7-3-2023). "Users are defined as addresses that have signed transactions interacting with programs using Pyth price feeds."

Pros and Cons

Cons

• Currently uses PoA (12-2022).

Team, Funding and Partners

Team

• Full team can be found [here].

Funding

• From their Telegram (17-1-2023):

"There have been no announcements about fundraising, tokens, or anything of the sort."

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