back02 Jun 20234 min read
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Pyth Launches Price Oracles on Osmosis

We’re excited to announce that Pyth’s low-latency pull oracles are now available on Osmosis, the Interchain Liquidity Layer of the Cosmos Hub. The deployment of the Pyth oracle on Osmosis follows a successful governance proposal, where 86.4% of the community voted to deploy the Pyth smart contract.

We look forward to supporting the Osmosis community and helping grow the broader Cosmos DeFi ecosystem by unlocking once inaccessible financial market data for builders. Builders on Osmosis can now access Pyth’s 200+ price feeds for equities, commodities, foreign exchange pairs, and digital assets!

"We are thrilled to see the Pyth Network deployed on Osmosis, the main liquidity layer of the whole Cosmos Hub”, said Mike Cahill, a director of the Pyth Data Association. “Osmosis' thriving ecosystem focused towards Decentralized Finance makes it the perfect partner for Pyth, and we look forward to a successful collaboration.


Pyth on Osmosis

The Pyth Network introduces an innovative low-latency pull oracle design, where users are empowered to “pull” price updates on-chain when needed, enabling everyone in that blockchain environment to access that data point. Builders on Osmosis can permissionlessly access any of the Pyth’s 200+ price feeds for equities, commodities, foreign exchange pairs, and cryptocurrency.

Mars Protocol is an autonomous credit protocol on Osmosis. Delphi Labs intends to propose to Mars Protocol's governance to migrate to Pyth price feeds. Levana — the decentralized perpetual trading platform — is also planning to migrate to utilising Pyth for their asset price sources. Membrane, is a money-market protocol wherein vault owners can deposit their collateral to receive a line of credit against it.

"Mars has so far relied on Osmosis TWAP for price data. This significantly limits the selection of assets that can be listed – Mars can only list assets that have sufficient liquidity in Osmosis pools, which is a prerequisite for a secure TWAP,” said Larry0x, a Mars contributor. “Many high quality collaterals, such as stETH, are excluded. Switching to Pyth is something that needs to be decided by the Martian Council, but my opinion is doing so will unlock tremendous growth potential for Mars."

“One of the most challenging and risky aspects of developing a money market or generalized credit protocol is sourcing and maintaining quality, robust price sources for assets,” said Mars Contributor, Dancreee. “This is also one of the largest barriers for protocol adoption. Without the ability to price in demand assets, the protocol will struggle to attract liquidity and grow.

“At Delphi Labs, we have a team dedicated to risk analysis. Our team’s research includes diving into previous black swan type events and how oracles have performed during them to understand the risks that come with listing different types of assets as collateral. In our research, we have found the sophisticated metrics offered by Pyth could have helped mitigate shortfall events on some protocols. This, along with the ability to enable listing of a wider range of assets, means we are advocating for Mars Protocol to utilize Pyth for price sourcing, and are excited at the potential to collaborate with them in the future.”

For more information about using Pyth data on Cosmos, check out our documentation.


Osmosis

Osmosis is the premier cross-chain DeFi hub. As the liquidity center and primary trading venue of Cosmos – the open, emergent ecosystem of sovereign Layer 1s connected with the Inter-Blockchain Communication protocol (IBC) – it is the access point for the wide world of appchains, the gateway to the interchain. As IBC continues to explode – with more than 50 blockchains connected and dozens more in development, including dYdX chain, and with teams working to enable IBC on Avalanche, Polkadot, NEAR, and others, potentially even Ethereum – Osmosis will be there to welcome new users, developers, and protocols to the Internet of Blockchains.

For more information about Osmosis, please visit their website and documentation.

Pyth

The Pyth Network is a first-party financial oracle network designed to provide low-latency real-world data to multiple blockchains in a secure and transparent manner.

The network incentivizes some of the world’s biggest institutional market participants — exchanges, market makers, and financial services providers — to share their proprietary price data on-chain. Pyth continuously aggregates this first-party data on-chain for use by smart contract applications. Applications “pull” Pyth prices onto their native blockchain when needed thanks to Pyth’s on-demand (or “pull-based”) oracle design.

In less than a year, the network secured more than $2.0B in total value. Pyth has facilitated more than $40B in total trading volume and received over 800K client downloads from passionate developers looking to use Pyth data.

Pyth currently supports 200+ real-time price feeds across crypto, equities, FX, and commodities.

You can learn more about Pyth from their website and documentation.


What’s Next?

We look forward to building the future of finance together! Check out the resources below to get started. If you have any questions, please reach out.

Now that Pyth has officially joined the Osmosis community, you will soon see many more Cosmos ecosystem tokens supported on the network as well as Cosmos chains accessing Pyth data. You can find our price feeds on the website and discover which price feeds are in the pipeline. If you would like to request a new price feed, please let us know in our Discord.

Resources


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.

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