We are excited to release the third installment of the Pyth Publisher Series, featuring Theodore Rozencwajg, CEO and Co-Founder at D2X!
Pyth has garnered interest across the worlds of crypto and traditional finance. Over 75 data publishers have now joined the network, and each publisher has its story to tell.
In today’s discussion, we hear from Theodore Rozencwajg at D2X, the soon-to-be-regulated (EU MTF License currently under application) pan-European digital derivatives exchange. D2X joined the network earlier this year in September. What inspired them to join the Pyth network and to contribute to their data? What do they envision for the future of blockchain and decentralized finance? Theodore provides a thoughtful and positive outlook.
Interview
D2X formally announced they were joining the Pyth network as a data provider in September. What led to that decision?
While D2X does not directly perform any DeFi-related activities, our mission statement aligns perfectly with Pyth. Our goal is to bridge the gap between traditional financial structures and the digital asset ecosystem.
Pyth is a core piece of Web3 infrastructure that is enabling exactly this, so contributing price data to the oracle is a perfect synergy for us. We are also really impressed with the progress Pyth has made and look forward to working alongside the 75+ other data providers Pyth has onboarded.
What is the most compelling aspect for you about DeFi and the broader oracle landscape?
The so-called “oracle problem” is one that is fundamental to our asset class. DeFi will hardly function and attract institutional flows as long as price discovery and infrastructure remain fragile.
Many hacks in DeFi are still caused by mediocre oracle technology, but Pyth now has the opportunity to change this and supercharge institutional adoption. Pyth’s performance during many turbulent market events has already demonstrated its ability to help solve this problem.
How does Pyth factor into your market data and crypto strategy?
As a soon-to-be-regulated derivatives exchange, we build infrastructure for price discovery. The institutional flows on D2X will become a source of key information for all market participants.
At D2X, we strongly believe in the transparency of market data, which again fully aligns with the Pyth mission, which is breaking down historical market data walled gardens controlled by large exchanges. Robust price oracles will allow for faster adoption of DeFi and our asset class as a consequence.
What are your views on the future of DeFi or oracle solutions in general? What would you like to see?
We see DeFi co-existing in parallel with CeFi, each having its own clear benefits. The interaction between them is key as the adoption of the former is beneficial to the latter.
As more use cases become available, more institutions will start trading. One of the challenges coming from the anonymous nature of DeFi is the accountability of bad actors. We believe that protocol design may mitigate and eventually eliminate such issues.
What are your thoughts on the current state of blockchain technology?
It is very exciting to see how fast blockchain technology has developed and has been adopted over the past couple of years. While there are already clear use cases, many more are likely to be discovered in the future. The developer community behind public blockchains is very impressive and growing still, Moore’s Law is at play.
How do you see the continuous evolution of CeFi vs DeFi and TradFi vs DeFi?
We are strong believers that there is room for regulated CeFi and DeFi to co-exist. Many institutions still show a preference for CeFi as the trading experience is typically more efficient: predictability, speed, and liquidity are the main drivers. There are also benefits to DeFi and one should not have to replace the other.
When it comes to TradFi, we feel that the distinction between the 2 worlds is becoming blurrier by the day with many players entering the space. There is a sweet spot somewhere between TradFi and Crypto where successful players will converge, naturally under a strong regulatory framework.
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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