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Pyth Network Launches Oracle Integrity Staking to Incentivize High-Quality Price Feeds
By rewarding accurate data contributions, Pyth Network aims to enhance DeFi reliability and hold data providers accountable for quality.
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New York, United States, September 23rd, 2024, Chainwire
Oracle Integrity Staking enables a more secure DeFi and gives stakers the chance to earn yield
Pyth Network (“Pyth”), the public decentralized data infrastructure that empowers the next generation of financial applications, today announced the launch of Oracle Integrity Staking (“OIS”). This is the latest innovation to Pyth Price Feeds which unlocks an entirely new generation of on-chain financial data, where anyone can be rewarded for providing economic protection and data source accountability within the Pyth Protocol.
As DeFi expands, the needs of builders and users have continued to evolve. The demand for heightened security and reliability in Web3 capital markets by smart contract developers and market participants has never been greater. Oracle Integrity Staking enhances the accuracy and reliability of Pyth Price Feeds by aligning the incentives of publishers and stakers with Pyth’s security and data quality goals. For developers, Oracle Integrity Staking means greater confidence in the data they rely on, enabling them to build fearlessly without concern over data integrity and security. Oracle Integrity Staking directly rewards data accuracy and performance by ensuring publishers and stakers are incentivized to maintain high data standards.
Michael Cahill, CEO and Co-Founder of Douro Labs, core contributor to the Pyth Network, commented on the news, “With the launch of Oracle Integrity Staking, Pyth Network is introducing a new era of accountability, enhancing security and trust in the decentralized finance ecosystem. Applications and users have suffered from unreliable data for too long, and this simply isn’t acceptable in our mission to create experiences on par with TradFi apps. By enabling token holders to stake and contribute directly to the integrity of our oracle services, we’re fortifying the reliability of on-chain data and offering unique ways for Pyth’s ecosystem to actively secure the oracle network, which has facilitated almost a trillion dollars in total transaction volume.”
Pyth data publishers will programmatically earn rewards from the Pyth protocol for maintaining high-fidelity data contributions to the price oracle. Oracle Integrity Staking incentivizes publishers to publish additional price feeds and higher quality data in order to increase the potential rewards received. PYTH stakers can delegate their staked tokens to publishers to enhance the publishers’ rewards, and obtain rewards for themselves, in exchange for reinforcing oracle data integrity.
This contribution strengthens the resilience and security of Pyth Price Feeds; in return, PYTH stakers are programmatically rewarded for securing the oracle network and protecting DeFi. In the unlikely event that a publisher provides inaccurate data, both the publisher and any stakers supporting them will have 5% of their stakes slashed as a penalty to ensure all parties are economically aligned with the goal of providing more reliable data.
Jayant Krishnamurthy, CTO and Co-Founder of Douro Labs added, “As the infrastructure that powers over 400 protocols across more than 70 blockchains, the reliability and accuracy of Pyth Price Feeds is paramount for advancing the DeFi ecosystem. Oracle Integrity Staking reinforces our commitment to building a more secure DeFi environment for all participants. Holding Pyth Publishers to high standards of security, quality, and excellence is made possible through a decentralized protocol which properly rewards good actors and also slashes the stakes of network participants who deliver faulty data. Through its support for all 500+ Pyth Price Feeds, Oracle Integrity Staking sets a higher standard for oracle technology and paves the way for new market participants to get involved in decentralized finance.”
Oracle Integrity Staking unlocks Pyth’s Price Feeds V3, which introduces enhanced data source accountability to every feed. The key component of Price Feeds V3 is the establishment of Oracle Integrity Staking to empower Web3 developers to build fearlessly without worrying about inaccurate or malicious data. Oracle Integrity Staking introduces a new paradigm in the oracle space—one that actively prioritizes data source accountability and protection across the entire oracle’s data feeds offering, setting a higher industry standard for decentralized finance.
Data Publisher Quotes
Tucker Watson, Venture at CMS Holdings, commented on the launch of OIS, “At CMS, we’re thrilled to see Pyth Network setting a new paradigm for oracle security with Oracle Integrity Staking (OIS). By holding data providers accountable and aligning incentives through staking, OIS redefines how developers can trust and utilize decentralized data. Pyth isn’t just innovating—they’re leading the charge in reshaping standards for secure, reliable data across ecosystems. We’re proud to partner in this transformative evolution, advancing the future of decentralized finance with greater trust and transparency.”
Guilhem Chaumont, CEO of Flowdesk, commented on the launch of OIS, “Oracle Integrity Staking enhances the Pyth Network by enforcing data accuracy and reliability through economic incentives and penalties. This system strengthens trust in the data feeds, fostering a more secure and robust DeFi ecosystem. As a data provider, Flowdesk is participating in OIS because it aligns our mission with data integrity. By staking tokens, Flowdesk is not just contributing data but actively aligning incentives with its accuracy and reliability. This responsibility reinforces trust in the network and in the broader DeFi ecosystem, ultimately leading to a more resilient and dependable infrastructure for all participants.”
Jordi Alexander, CEO of Selini Capital, commented on the launch of OIS, “The power of cryptography gets unleashed when incentive alignment fills the gap of trust- for this reason it is great to see that Oracle Integrity Staking empowers data publishers like Selini. By staking PYTH tokens, we’re not just participating—we’re showing our dedication to provide accurate, timely, and reliable data that developers can trust. Oracle Integrity Staking will motivate participants to continue delivering the highest-quality data and demonstrating their commitment to supporting DeFi’s growth. We’re excited to be part of this vision, where the best data providers thrive, and developers are set up for success.”
Data User Quotes
Rachel Lin, CEO and co-founder at SynFutures, commented on the launch of OIS, “Partnering with Pyth Network and Oracle Integrity Staking ensures that our decentralized derivatives protocol has a foundation of trust. With data providers held accountable through economic incentives, we can confidently rely on accurate and timely data, which is integral to our continued growth.”
Tristan Frizza, Founder of Zeta Markets, commented on the launch of OIS, “Pyth have been critical to the success of Zeta since our inception. Their oracle product has stood the test of time and we’ve been thrilled to see them expand to hundreds of other apps and chains across crypto. We’re delighted to see Pyth continue to innovate with the introduction of Oracle Integrity Staking; directly addressing the problems of data quality and scalability for teams like Zeta by holding publishers economically accountable for price accuracy and asset coverage. This release brings us one step closer to being able to compete with CEXs on all metrics, and allows us to continue to push the boundaries of decentralized trading.”
About Pyth Network
Pyth Network is the public decentralized data infrastructure that empowers the next generation of financial applications. Pyth provides DeFi builders with the supercharged infrastructure they need to create dApps that deliver experiences on the same level as apps. Equipping data providers, typically financial institutions, with a new way to monetize their quote and trade data while playing a key role in the nascent digital asset class. As the underlying market infrastructure, Pyth Network facilitates almost a trillion dollars in total transaction volume across over 70 blockchains and 400 applications that rely on its quote and trade data.
To learn more, users can visit: https://www.pyth.network/
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