Pyth Network, a leading oracle network, has broadened its presence in the decentralized finance sector with a new feature known as Redemption Rate Feeds.
Announced on Oct. 24, the redemption rate feeds, or RRF, deliver real-time valuations for liquid staking tokens, restaking tokens, and yield-generating stablecoins. This feature enables Pyth Network (PYTH) to provide the wider DeFi ecosystem with pricing data that traditional price feeds fail to offer.
The practical implications are substantial, as DeFi platforms now have access to accurate valuation data for intricate assets.
“Consider it a transition from estimated values to precise values—a significant enhancement that allows more protocols to utilize Pyth price feeds,” stated Pyth Network.
How it functions
Crypto redemption rate feeds offer live token values, sourced directly from the smart contracts of the underlying assets. According to the team at Pyth Network, these genuine values encompass accrued rewards and interest.
This distinction is what makes RRF “fundamentally different from market price data,” Pyth elaborated in a post on X.
This type of valuation is applicable for derivatives like liquid staking tokens and yield-generating stablecoins. The feeds are permissionless and available to DeFi developers throughout the ecosystem.
Upon launch, Pyth Network’s redemption rate feeds will include 19 real-time values on Ethereum Virtual Machine (EVM)-compatible networks. This encompasses Crypto.com’s staked ETH (CDCETH), Mountain Protocol’s wUSDM, Ondo Finance’s U.S. Dollar Yield (USDY), and Ethena’s USDe, a synthetic dollar.
The feeds will also cover ETH staking pairs, such as Coinbase wrapped staked ETH (cbETH) and Rocket Pool’s liquid staking token rETH.
Pyth Network’s product launches into the market through crucial industry partnerships with market makers, lending protocols, aggregators, and derivatives providers. Launch partners include Ionic, ZeroLend, UniDEX Exchange, and Polynomial.
