A deep dive into Pyth Network: What are the upcoming catalysts?

Author: Jake Pahor, encryption researcher; Translation: Golden Finance xiaozou

The Solana ecosystem is filled with the hottest DeFi developments. guess what? Solana may have just launched a project that can compete with Chainlink. This article is my latest research on PYTH.

The main content of this article includes 11 parts: 1. Overview; 2. Use cases; 3. Adoption; 4. Benefits; 5. Token economics; 6. Treasury; 7. Governance; 8. Team and Investors; 9. Competitors; 10. Risk and audit; 11. Conclusion.

The Pyth network is currently The largest and fastest growing first-party Oracle network, providing real-time market data to financial dApps on more than 45 blockchains, and more than 400 low-latency price information for the following businesses:

• Cryptocurrency

• Stocks

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• Forex

• Commodities

In traditional markets, price information is usually owned and controlled by a limited number of centralized entities.

Decentralized price oracles play a vital role in the cryptocurrency field. They provide accurate pricing information that is accessible to everyone.

But the Python network is not only It’s just Solana’s Chainlink and it has so many more features.

• Pyth Oracle price is updated every 400 milliseconds

• Updated 200,000 times a day

• 449 price feeds

• More than 250 Apps

• More than 45 blockchains

• Updated more than 80 million times a day

Pyth networking has been rapidly gaining popularity. Here are some astonishing figures from a recent 24-hour period:

• 40 million issuances Publisher price updates

• 5.5 million publisher price update transactions

• 118 daily active consumers

• 70,000 daily active users

• 2.6 million daily user interactions

Consumers need to pay to access data through this protocol. These fees are charged a fixed rate per Pyth price update cycle on the target chain.

In the past month, the protocol fee has remained at 50-80 SOL.

USD 4800-7600 per day.

PYTH is the Python network governance token. Token holders can vote on proposed updates to the protocol.

52% of the token supply will be used for "ecosystem development", 22% for issuer rewards, and 10% for internal sales and protocol development.

November 2023 , the Pyth Network airdropped 6% of its token supply to network users and community members. There are ongoing rumors about future airdrops for PYTH stakers.

Current supply data:

• Circulation supply: 1.5 billion coins

• Maximum supply: 10 billion coins

• Market value: US$580 million

• FDV: US$3.87 billion

• Market capitalization/FDV: 15%

The Pyth network does not have a treasury, but it has allocated 1 billion for "protocol development" PYTH token. Currently, 15% has not yet been unlocked, and the rest will not be fully released until 2027.

The current value is US$385 million.

For a newly released protocol, the performance is amazing.

A decentralized Governance processes were established and 10 proposals were voted on. The proposal involves the following aspects:

• The size of the update fee

• Reward distribution mechanism

• Approval of software updates

• Quotation information

• Select the publisher that provides data for each price message

Pyth was incubated by Jump Crypto in 2021. Later, Duoro Labs, an independent entity, was established and now focuses on developing the Pyth protocol.

The core contributors are: Mike Cahill, Jayant Krishnamurthy and Ciarán Cronin.

Main investors: Multicoin Capital, Delphi Digital and Wintermute.

Chainlink is a Pyth network main competitors. It is the original oracle solution and has survived multiple bear markets in more than 6 years.

While I love Chainlink, there are other competitors in the oracle market, and Python is ready to capture market share.

Pyth software has passed Multiple rounds of audits from different companies, and a bug bounty program of up to $500,000 was launched.

CertiK gave Pyth a security score of 87.53, ranking it in the top 10% of the protocols they surveyed.

Basic health and code security scored the lowest.

I still think Chainlink is the #1 Oracle solution, but I think Pyth has huge potential. Definitely worth keeping a close eye on.

Upcoming catalysts are:

• PYTH pledge airdrop Rumors

• Tokenization of more assets

• Solana ecosystem growth

• Total weighted score: 8.30