Since its inception in April 2021, the Pyth Network has been making waves across the crypto ecosystem with a simple yet profound goal: to open the walled garden of financial data for the world to build on. Today, Pyth delivers over 250 permissionless, decentralized, and real-time price feeds to more than 170 on-chain and off-chain applications across 23 blockchains.
Arbitrum, the leading Ethereum Layer 2 scaling solution developed by Offchain Labs, has benefited from one of the most successful deployments of the Pyth oracle solution. Pyth’s low-latency pull oracles have been available since Arbitrum’s mainnet launch on January 31.
In this blog, we will explore the benefits of Pyth Price Feeds and delve deep into the universe of Arbitrum dApps powered by Pyth data.
What is Pyth?
The Pyth Network is the largest first-party financial oracle network delivering over 250 real-time price feeds across cryptocurrencies, FX rates, ETF’s, equities, and commodities to more than 20 L1 and L2 chains.
Pyth's market data is sourced from 80+ primary data providers, including some of the world's most prominent exchanges and market-making enterprises such as Cboe, Jane Street, Optiver, Binance, Bybit, OKX, Wintermute, QCP Capital, and others.
Pyth Price Feeds are meticulously engineered for speed, precision, and dependability. They update multiple times per second, and you can view them updating live on the Pyth website. Each update is an aggregate of prices reported by the network’s reputable data providers. Robust and transparent aggregation procedures on-chain ensure that colluding or mistaken providers cannot materially influence the aggregate price.
The end result? Low-latency oracle prices which track the markets with 5-10x more accuracy than competing solutions. Integration with Pyth Price Feeds is seamless and permissionless.
Who’s #PoweredByPyth on Arbitrum?
The Pyth Network has long proven itself as the go-to DeFi oracle solution for established leaders and exciting upstarts across the Arbitrum ecosystem.
Pyth is the primary oracle for perpetuals platforms such as CAP Finance, Buffer Finance, Duet Protocol, Deri Protocol, Vela Exchange, and Tigris Trade, as well as synthetics and derivatives solutions like Poison Finance and Vyper.
These applications have benefitted enormously from Pyth’s comprehensive asset coverage and precise market tracking. Since integrating with Pyth, for example, CAP Finance has added support for almost 30 new markets and surpassed $2.5B in Trading Volume in less than six months.
Pyth Network introduces an innovative pull oracle model which enables anyone to permissionlessly request or “pull” a price update when needed or on demand. In contrast, legacy oracles often use a “push” model which constantly “push” or stream price updates—even if many pushed prices are unused, resulting in wasted gas. The gas efficiencies of Pyth’s pull oracle model allows the network to deliver high-frequency, low-latency price updates that perpetuals and derivatives platforms need. Pyth’s unique architecture can also scale to thousands of price feeds to serve the Arbitrum community and the wider DeFi ecosystem.
Arbitrum and Beyond
Pyth Price Feeds offer one more special advantage for developers. When the network launches a new data feed, that feed is immediately available across all 20+ Pyth-supported chains.
When Pyth launched its ARB/USD price feed on Arbitrum’s listing day, builders across Arbitrum, Optimism, Ethereum, Aptos, Solana and more started integrating right away to deliver ARB/USD markets.
The instantaneous expandability of Pyth Price Feeds across the greater DeFi universe unlocks transformative opportunities for cross-chain expansion and multi-chain growth: builders can launch their services on new chains with the markets their users are familiar with; ambitious projects can rapidly extend exposure to strategic assets to new communities.
Outside of Arbitrum, there are more than 170 applications utilizing Pyth data. To date, Synthetix on Optimism is one of the most active user bases of Pyth’s low-latency price feeds. After a successful governance proposals, Synthetix Perps V2 adopted Pyth Price Feeds as its new primary off-chain oracle source. Thanks to Pyth’s expansive price feed catalog, Synthetix has added 40 new perps markets, processed close to $15B in trading volume, and generated more than $10M in fees for SNX stakers over six months.
Pyth’s contributors are also elated to see Pyth oracles supporting Aave on Optimism as well. The Aave governance community has approved the addition of Pyth as a secondary oracle, given the clear benefits in resiliency and decentralization. This decision showcases the Pyth Network's capabilities as a dependable and powerful oracle solution for mission-critical protocols.
Other notable users of Pyth's low-latency price feeds include Ribbon Finance, the number one decentralized option vaults (DOV) platform on Ethereum; Venus Protocol, the largest money market protocol on BNB Chain; Alpaca Finance, the lending protocol which recently launched perpetual futures thanks to Pyth; and Helium Network, a global distributed network of Hotspots that creates public long-range wireless coverage for IoT devices and cellular devices.
More broadly, to date (launched in mid-December 2022), Pyth has already delivered over 4.25M cross-chain price updates, with an ATH of 90K on-chain price updates in a single day!
To track Pyth’s cross-chain price updates, you can visit the Pyth Stats Page.
Get Started with Pyth on Arbitrum?
The Pyth Network introduces an innovative low-latency pull oracle design, where users are empowered to request or "pull" price updates on demand. This feature enables everyone in that blockchain environment to access that data point. Builders on Arbitrum can permissionlessly integrate with any of Pyth's 250+ price feeds.
You can explore our integration tutorial series on the Pyth Youtube channel.
- How Pyth Network Works
- Pyth On-Demand Model Explained
- How to use Pyth On-Demand Model
- How to use Pyth with a Price Pusher
- How to use Pyth’s Benchmarks
If you have any questions or requests, you can ask in the the Pyth Discord!
Arbitrum Foundation
The Arbitrum Foundation, founded in March 2023, supports and grows the Arbitrum network and its community with secure scaling solutions for Ethereum. The Foundation oversees the $ARB token and governance structure as well as the Arbitrum Security Council, a 12-member multisig of well regarded community members designed to ensure the security of the chains.
Arbitrum One
Arbitrum One is a leading Ethereum Layer-2 scaling solution developed by Offchain Labs. An Optimistic Rollup, Arbitrum One provides ultra-fast, low-cost transactions with security derived from Ethereum. Launched in August 2021, the Arbitrum One mainnet beta is EVM-compatible to the bytecode level and has 65%+ TVL in the L2 segment. 400+ DeFi and NFT projects are live in the ecosystem to date. In August 2022, Arbitrum One upgraded to Nitro tech stack, enabling fraud proofs over the core engine of Geth compiled to WASM.
Pyth Network
Pyth Network is the largest first-party financial oracle solution delivering real-time market data to over 20 blockchains in a secure, transparent manner. Pyth supports 250+ real-time price feeds across major asset classes including digital assets, equities, ETFs, FX, and commodities.
The network comprises some of the world’s largest exchanges, market makers, and financial services providers contributing their proprietary price data on-chain for aggregation and distribution to smart contract applications. Thanks to Pyth's innovative pull oracle design, applications can effortlessly “pull” the latest Pyth price onto their native blockchain on demand.
In less than a year, the network has secured over $2.0B in total value. Pyth has facilitated over $50B in trading volume and serves over 170 on- and off-chain applications. You can learn more about Pyth from their website and documentation.
What’s Next?
We look forward to building the future of finance together on Arbitrum! Check out the resources below to get started. If you have any questions, please reach out.
Pyth has officially joined the Arbitrum community, and you will soon see many more Arbitrum ecosystem tokens supported on the network. You can find the Pyth Network price feeds catalog on their website and discover which price feeds are launching next. If you have any questions or feedback, you can ask in the Pyth Discord.
Resources
- Pyth Website
- Pyth Docs
- Pyth Best Practices
- Pyth On-Demand Update
- Pythnet
- Pyth on Arbitrum
- Pyth Price Feeds IDs
- Pyth for Off-Chain Use
- Pyth Discord
- Pyth Telegram
We can’t wait to hear what you think! You can join the Pyth Discord and Telegram, follow us on Twitter, and be the first to hear about what’s new in the Pyth ecosystem through our newsletter. You can also learn more about Pyth here.
Stay Updated with Pyth
Stay informed about Pyth network's development and upcoming events!
