Yigit Taha OZTURK 
Pyth Network is a decentralized oracle network that delivers high-quality off-chain market data directly to blockchains. Launched in 2021 on Solana, this protocol provides precise and low-latency price data, especially for DeFi applications. Pyth sources its data directly from exchanges, market makers, and financial institutions, making it faster and more reliable than traditional oracle models.
Project Idea
Blockchains cannot access the outside world directly. However, real-world data like prices, stocks, and commodities are essential for applications like DeFi. Pyth Network fills this gap. It enables decentralized, fast, and verifiable data to be used directly on-chain. It is particularly critical for derivatives, lending platforms, and stablecoin systems that require high-frequency data.
How Does Pyth Network Work?
Pyth Network aggregates price data from multiple providers. Each provider sends the price along with a confidence interval. These inputs are weighted by reliability and compiled into a single price feed, refreshed every 400 milliseconds.
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Its pull-based model—where data updates only when needed—reduces transaction costs while improving network efficiency.
Additionally, data is published on its own blockchain called Pythnet, which ensures transparency and security.
Ecosystem and Use Cases
Pyth Network is widely used across the DeFi ecosystem. Key use cases include:
- Decentralized Exchanges (DEXs): Platforms like Drift Protocol use Pyth’s low-latency feeds for better matching and risk management.
- Lending Protocols: Solend and ReactorFusion rely on Pyth to calculate collateral ratios and trigger automated liquidations.
- Stablecoins: Projects like USDT use Pyth Network for real-time price feeds to maintain USD peg.
- Derivatives and Options: Platforms like Kwenta use Pyth for leveraged trading and options contracts.
- Yield Optimization: In areas like yield farming, Pyth feeds are used to dynamically track staking data and market performance.
Tokenomics and Unlock Schedule
The total maximum supply of PYTH tokens is 10 billion. Current distribution and status are as follows:
- Total distribution progress: 57.5%
- Unlocked: 5.75B PYTH (~$611.28M)
- Locked: 2.13B PYTH (~$225.91M)
- Next unlock: 21.3%
| Distribution Area | Total | Unlocked | Locked |
|---|---|---|---|
| Ecosystem Growth | 52% | 29.5% | 22.5% |
| Publisher Rewards | 22% | 11.2% | 10.8% |
| Protocol Development | 10% | 5.75% | 4.25% |
| Private Sales | 10% | 5.00% | 5.00% |
| Community Launch | 6.00% | 6.00% | – |
Fundraising and Investment Rounds
Pyth Network announced a strategic funding round in December 2023. Major DeFi-focused investors supported the project:
- Delphi Ventures
- Multicoin Capital
- Wintermute
- CMT Digital
- Distributed Global
- Borderless Capital
The exact amount raised was not disclosed, but these firms confirmed strategic backing.
Roadmap and Future Plans
- 2021: Launched on Solana, initial data feeds published
- 2022: Pythnet launched, cross-chain functionality added via Wormhole
- 2023: Governance token PYTH launched and airdropped
- 2024: Supported over 50 blockchains, secured $5B+ in total value
- 2025 and beyond: More data providers, new asset classes (commodities, stocks, forex), 20% lower latency goal
Pyth Network is an innovative oracle solution fulfilling the need for real-time and reliable data in DeFi. Thanks to its technical design and token model, Pyth is expected to be integrated by even more platforms in the coming years. It has become a crucial infrastructure component for DeFi protocols requiring high-frequency transactions and precise pricing.
Official Links
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