Unlocking LSTs, LRTs, and Yield-Bearing Stablecoins: Pyth Redemption Rate Feeds

Liquid Staking Tokens (LSTs), Liquid Restaking Tokens (LRTs), and yield-bearing stablecoins have been a major driving trend in the DeFi space for the last year. Historically, Pyth Price Feeds have been continuously trusted by developers looking to gain an edge on the competition. Now, in the spirit of unlocking topical assets for DeFi builders, the Pyth contributors are excited to announce the launch of Crypto Redemption Rate Feeds.

Introducing Two New Asset Classes

This launch signifies more than just another price feed—it marks the unlocking of two new and popular asset classes: liquid restaking tokens and yield-bearing stablecoins. By sourcing redemption rates directly from asset smart contracts, Pyth can offer a real-time price feed for that asset. A key example is wstETH by Lido, an ETH derivative which accumulates yield over time. While tradable on various platforms, most lending protocols prefer to use its exchange rate, which Crypto Redemption Rates can now fetch.

This new category of price feeds marks a pivotal step forward in Pyth’s mission of providing the most comprehensive, reliable oracle solutions for the DeFi ecosystem and its builders. Starting today, Pyth Price Feeds will support 19 new crypto redemption rate feeds from the EVM ecosystem. The redemption rate feeds complement Pyth’s liquid feeds which aggregate market prices from first-party sources, including exchanges, trading firms, and market makers.

Pyth now offers a comprehensive array of feeds, covering not just crypto, but also commodities, equities, FX, ETFs, LSTs, LRTs, and yield-bearing stablecoins.

What are Crypto Redemption Rates?

Crypto Redemption Rates provide the exact value at which a crypto asset can be redeemed, sourced directly from its underlying smart contract. Unlike traditional price feeds that aggregate market prices from several sources, these feeds capture the programmatically defined exchange rate set by the asset's protocol. This design is especially important for assets like liquid staking derivatives or interest-bearing tokens, whose values change based on internal mechanisms like accumulated rewards or interest accruals.

The Importance of Crypto Redemption Rate Feeds in DeFi

As DeFi continues to evolve, the need for precise and trustworthy data becomes more critical than ever. While liquid oracle feeds are excellent for assets with high liquidity and trading volumes, they may not accurately capture the value of assets whose prices are determined by smart contract logic rather than market dynamics. Crypto Redemption Rate Feeds address this gap by providing accurate valuations directly from the asset smart contract, ensuring that programmatically determined values—such as accumulated yields or interest—are reflected.

Additionally, Crypto Redemption Rate Feeds address a long-standing need in the DeFi space, providing developers with the precise, real-time data they have been seeking for assets like liquid staking tokens and yield-bearing stablecoins. With these new oracle feeds, Pyth empowers DeFi applications like lending platforms to accurately assess the true value of these assets, unlocking new opportunities for lending, borrowing, and other financial activities. By offering redemption rates directly from the asset's smart contract, Pyth ensures these valuations are not influenced by market fluctuations, improving risk management across the ecosystem.

Spotlight on Liquid Staking Tokens

Thanks to the launch of Crypto Redemption Rate Feeds, Pyth can provide live valuations for complex assets like liquid staking tokens (LSTs), liquid restaking tokens (LRTs), and yield-bearing stablecoins for smart contract protocol markets on these underlyings.

Take Wrapped Staked Ether from Lido Finance as an example: wstETH represents staked Ether, which accumulates staking rewards over time, increasing its value relative to ETH as these rewards accumulate.

The redemption rate of wstETH to ETH is defined by Lido's smart contract, making it imperative to source this data directly for accurate valuation. Lending protocols, for example, often prefer using the smart contract redemption rate to ensure fair and precise lending and borrowing terms. By offering crypto redemption rate feeds for assets like wstETH, Pyth Price Feeds enables DeFi applications to integrate these complex assets seamlessly, paving the way for highly anticipated services and innovations.

Top Feeds and Builders Leveraging Pyth’s Redemption Rates

Pyth Network is excited to see ambitious teams and leaders in the DeFi space begin tapping into these new redemption rate price feeds to push the boundaries of what’s possible in crypto. By providing precise, real-time valuations directly from asset smart contracts, these feeds empower developers to enhance the functionality and security of their decentralized applications. Now, DeFi builders can access reliable redemption data for more asset classes, enabling more accurate pricing models and unlocking new possibilities for risk management and yield optimization.

Ionic Money, Zerolend, Unidex, Thala, Fractality, Polynomial, Tectonic and others are embracing Pyth's new Crypto Redemption Rate Feeds to enhance their services and address previous limitations in the ecosystem. For example, Pyth’s redemption rate feeds are set to provide more accurate pricing for assets by using data directly from the asset's smart contract, rather than relying on fluctuating market prices. Additionally, these feeds allow platforms to track the value of assets in real-time, which is crucial for earning yield and managing risk in trading.

By accessing precise, programmatically defined asset values directly from smart contracts, users can accurately price assets like Liquid Staking Tokens (LSTs) and Liquid Restaking Tokens (LRTs), whose values adjust based on accumulated rewards or interest. This approach helps avoid potential false depegs caused by unreliable on-chain liquidity—a common issue with traditional price feeds that rely on fluctuating market prices.

Redemption rate feeds are set to include the following:

• $USDY from Ondo Finance — A yield-bearing stablecoin backed by short-term US Treasuries, providing investors with a secure and consistent return.
• $STONE from StakeStone — StakeStone is an omnichain liquidity asset protocol building an adaptive staking network for liquid ETH / BTC.
• $sUSDe from Ethena Labs — A decentralized stablecoin pegged to the US dollar, designed to maintain its value through smart contract logic.
• $wUSDM from Mountain Procotol — A wrapped stablecoin designed for DeFi markets, enabling seamless integration into various decentralized applications.
• $CDCETH from Crypto.com — A liquid staking derivative that offers Ethereum staking rewards while allowing for liquidity within the Cronos ecosystem.

The batch will also include APXETH/PXETH, CBETH/ETH, CDCETH/ETH, EETH/ETH, ETHX/ETH, EZETH/ETH, FUSDC/USD, METH/ETH, PZETH/WSTETH, and RETH/ETH.

With the launch of these new asset classes, Pyth Network continues to break new ground by delivering real-time, precise data for some of DeFi’s most innovative offerings. With Crypto Redemption Rate Feeds, developers can unlock fresh possibilities when it comes to trading and staking in the DeFi ecosystem.

Stay tuned for what’s coming next. The future of digital finance is here—and it’s powered by Pyth.

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