TechFlow Insights
In the crypto world, oracles serve as "quotation providers": they fetch prices from upstream data sources and deliver them to downstream applications, supporting various application scenarios.
Pyth Network has secured its position in the oracle sector for several key reasons outlined below.
1. Strong network of data providers.
As early as the project's launch two years ago, Pyth announced over 40 top-tier price data providers from financial markets and the crypto industry, including GTS—one of the largest market makers at the New York Stock Exchange—and Jump Trading, the clearing unit of the Chicago Mercantile Exchange. In the crypto space, major centralized exchanges such as Binance, OKX, and Coinbase, along with market makers like DWF Labs, contribute their data.
For the crypto market, these sources provide not only mainstream assets like BTC and ETH but also a large number of long-tail assets. In traditional finance, Pyth has begun exclusively aggregating real-world asset prices such as commodities, precious metals, and foreign exchange.
2. A dedicated application chain: Pythnet.
Pythnet is a fork of Solana’s blockchain that leverages Solana’s high performance while remaining independent from Solana’s outages and network congestion.
The core operational logic of this chain involves aggregating price data submitted by data providers into a unified reference price recorded on its own chain. The entire price aggregation computation process is also conducted on-chain, enabling easy verification of both the process and results via blockchain whenever prices are queried, thus ensuring final price accuracy.
3. New data delivery model: Cross-chain support, shifting from “continuous push” to “on-demand pull.”
Traditional oracle pricing typically uses a “push” model. However, in Pyth Network’s V2 version, this passive “constant pushing” has been replaced with an active “pull when needed” approach.
This on-demand pull mechanism means users incur costs only when they actually use the pricing service, eliminating the need to continuously push prices to target chains.
4. Shift in business and collaboration models
Under the on-demand pull model, protocol integration with oracles becomes more Web3-native: you no longer need to contact Pyth’s business team offline. Simply using developer documentation and deploying smart contracts allows full automation—contract triggering, gas payment, data retrieval, and post-retrieval usage—all executed seamlessly.
Recently, Pyth launched Express Relay, a new product designed to eliminate MEV, and Oracle Incentivized Security (OIS), enhancing DeFi security through safer pricing incentives.
Funding history:
- On December 4, 2023, the Pyth Data Association announced completion of a new funding round with participation from Castle Island Ventures, Multicoin Capital, Wintermute Ventures, Borderless Capital, CMT Digital, Bodhi Ventures, Distributed Global, and Delphi Digital; the funding amount was not disclosed.
