While most people interact with blockchain technology to trade crypto, this use case is really just a fraction of the future that Pyth is enabling. Today, with the launch of Pyth Energy Feeds, Pyth Network is delivering reliable price data for energy assets—think WTI (West Texas Intermediate) and Brent crude oil.
Developers can start building energy markets immediately, expanding the scope of DeFi beyond cryptocurrencies to power real-world assets (RWAs) like energy commodities, metals, equities, and ETFs.
This expansion of Pyth Price Feeds is a big step forward in Pyth’s mission to collect the price of everything, paving the way for decentralized markets to power a truly accessible global financial system. Let’s dive in:
Why On-Chain Energy Feeds Matter
If DeFi is to expand beyond crypto trading, integrating traditional assets into decentralized systems will play a key role in making that growth possible. Across current traditional markets, the energy sector commands market valuations in the trillions. The introduction of energy assets to DeFi brings about more legitimacy and relevance for traditional investors, expanding the industry’s reach and impact through institutional players interested in deploying capital on-chain. WTI and Brent in particular are crucial benchmarks for global oil prices, influencing everything from economies to geopolitics.
Key Advantages of On-Chain Energy Price Feeds:
- Asset Diversification: Energy assets allow DeFi users to diversify portfolios beyond crypto.
- Risk Mitigation: Energy prices, influenced by global events, can serve as hedging tools.
- Enhanced Liquidity: Energy markets are highly liquid, attracting more capital into DeFi.
- Alignment with TradFi: Including familiar assets helps bridge traditional and decentralized finance.
- New Financial Products: Developers can create innovative tools using energy data, catering to retail and institutional users.
Pyth Price Feeds for WTI and Brent
Developers can permissionlessly integrate WTI and Brent price feeds from Pyth Network's comprehensive suite:
WTI Crude Oil
- WTI1M: Aggregated price for the front-month futures contract for one barrel of WTI Crude Oil.
- WTI2M: Aggregated price for the second-month futures contract for one barrel of WTI Crude Oil.
- WTI3M: Aggregated price for the third-month futures contract for one barrel of WTI Crude Oil.
- USOILSPOT: Aggregated price for a non-expiring Contract for Difference (CFD) that tracks the price of WTI Light Sweet Crude Oil.
The roll of these futures is executed automatically after expiry, typically 3–4 days before the 25th of each month. The roll takes place following the Last Trade Date (LTD), after market close. At the next market open, publishers begin sourcing data from the new contract.
Brent Crude Oil
- BRENT1M: Aggregated price for the front-month futures contract for one barrel of Brent Crude Oil.
- BRENT2M: Aggregated price for the next-month futures contract for one barrel of Brent Crude Oil.
- BRENT3M: Aggregated price for the after-next-month futures contract for one barrel of Brent Crude Oil.
- UKOILSPOT: Aggregated price for a non-expiring Contract for Difference (CFD) that tracks the price of Brent Crude Oil.
The roll of these futures is executed automatically after expiry, typically 1-3 days before the end of each month. The roll takes place following the Last Trade Date (LTD), after market close. At the next market open, publishers begin sourcing data from the new contract.
Developers
Integrating the WTI or BRENT price feeds? In term of best practices, it is recommended to avoid relying solely on the 1-month (1M) expiry price feed, as liquidity often decreases closer to expiration, which can affect accuracy. For more reliable results, it is best to calculate a weighted average across the 1-month, 2-month, and 3-month feeds. For detailed guidance, refer to the documentation.
You can also consider integrating the USOILSPOT or UKOILSPOT price feed directly. These feeds eliminate the need to build the weighting mechanism required for WTI feeds, offering a more streamlined solution.
If you’re ready to get started, make sure to check out the docs and other resources here:
Pyth Energy Feeds are designed to drive innovation and support the evolution of a global financial system. Whether you’re creating new markets or improving existing ones, Pyth provides the data you need to elevate your application.
We want to hear your feedback. Join the Pyth Discord and Telegram, and follow Pyth on X and LinkedIn. You can also learn more about Pyth here.
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