Pyth Network Unveils Oracle Integrity Staking for Price Security

[PRESS RELEASE – New York, United States, September 23rd, 2024]

Oracle Integrity Staking introduces enhanced security for DeFi while allowing stakers to earn returns

Pyth Network (“Pyth”), a public decentralized data infrastructure fostering the next generation of financial applications, has unveiled Oracle Integrity Staking (“OIS”). This latest feature of Pyth Price Feeds opens the door to a new era of on-chain financial data, enabling users to earn rewards for enhancing economic protection and ensuring data source reliability within the Pyth Protocol.

As the DeFi landscape continues to grow, the requirements of developers and users have become more intricate. The necessity for superior security and dependability in Web3 capital markets has reached an all-time high among smart contract creators and market users. Oracle Integrity Staking boosts the precision and dependability of Pyth Price Feeds by aligning the motivations of data publishers and stakers with Pyth’s security and data quality objectives. For developers, Oracle Integrity Staking instills confidence in the data they utilize, allowing for fearless development without apprehensions regarding data integrity and security. The mechanism rewards data accuracy and performance, compelling publishers and stakers to uphold high standards of data quality.

Michael Cahill, CEO and Co-Founder of Douro Labs, a key contributor to the Pyth Network, commented on the announcement, “The introduction of Oracle Integrity Staking marks a significant advancement in accountability and reinforces security and trust within the decentralized finance domain. Users and applications have been hindered by unreliable data for far too long, which is unacceptable as we strive to create experiences comparable to traditional financial applications. By allowing token holders to stake and contribute to the integrity of our oracle services, we are bolstering the trustworthiness of on-chain data and providing unique opportunities for the Pyth ecosystem to actively secure the oracle network, which has enabled nearly a trillion dollars in total transaction volume.”

Data publishers within the Pyth network will receive automated rewards from the protocol for delivering high-quality data to the price oracle. Oracle Integrity Staking encourages publishers to offer more price feeds and superior data in order to maximize potential rewards. PYTH stakers have the option to delegate their staked tokens to publishers, boosting the publishers’ earnings while also earning rewards for themselves in return for reinforcing the integrity of the oracle data.

This contribution enhances the resilience and security of Pyth Price Feeds; consequently, PYTH stakers are systematically rewarded for securing the oracle network and supporting DeFi. Should a publisher submit inaccurate data, both the publisher and any supporting stakers will face a 5% stake reduction as a penalty, ensuring all participants are aligned with the goal of delivering more dependable data.

Jayant Krishnamurthy, CTO and Co-Founder of Douro Labs, added, “Given that our infrastructure supports over 400 protocols across more than 70 blockchains, the reliability and accuracy of Pyth Price Feeds is critical for advancing the DeFi ecosystem. Oracle Integrity Staking strengthens our dedication to creating a safer DeFi environment for all participants. Enforcing high standards of security, quality, and excellence amongst Pyth publishers is feasible through a decentralized protocol that properly rewards responsible actors while penalizing those who deliver erroneous data. Supporting all 500+ Pyth Price Feeds, Oracle Integrity Staking elevates the benchmarks for oracle technology and invites new players into the decentralized finance arena.”

Oracle Integrity Staking activates Pyth’s Price Feeds V3, which introduces enhanced accountability for data sources in every feed. The core element of Price Feeds V3 is the initiation of Oracle Integrity Staking, empowering Web3 developers to build confidently, free from concerns about erroneous or malicious data. By establishing a new standard in the oracle domain, Oracle Integrity Staking actively promotes accountability and protection across the full spectrum of the oracle’s data feeds, thus raising the bar for decentralized finance.

Data Publisher Statements

Tucker Watson, Venture at CMS Holdings, remarked on the launch of OIS, “At CMS, we are excited to witness Pyth Network initiating a new standard for oracle security with Oracle Integrity Staking (OIS). By holding data providers accountable and aligning incentives through staking, OIS transforms how developers can trust and leverage decentralized data. Pyth is not just innovating—they are at the forefront of establishing secure and reliable data standards across ecosystems. We are proud to collaborate in this transformative journey, promoting the evolution of decentralized finance with increased trust and transparency.”

Guilhem Chaumont, CEO of Flowdesk, stated regarding the launch of OIS, “Oracle Integrity Staking enriches the Pyth Network by ensuring data accuracy and reliability through economic incentives and penalties. This approach builds confidence in data feeds, nurturing a more secure and resilient DeFi ecosystem. As a data provider, Flowdesk is engaged in OIS because it aligns with our mission of upholding data integrity. By staking tokens, Flowdesk is not merely supplying data but genuinely aligning incentives with the accuracy and reliability of that data. This accountability fosters trust within the network and the broader DeFi ecosystem, leading to a more robust and reliable infrastructure for all participants.”

Jordi Alexander, CEO of Selini Capital, remarked on OIS’s launch, “When incentive alignment addresses the trust gap, the potential of cryptography is unleashed—this is why it is exciting to see Oracle Integrity Staking empower data publishers such as Selini. By staking PYTH tokens, we are not just taking part; we are demonstrating our commitment to providing precise, timely, and reliable data that developers can depend on. Oracle Integrity Staking will encourage participants to consistently deliver high-quality data, showcasing their dedication to supporting the growth of DeFi. We are eager to be part of this vision, where the best data providers excel, and developers are positioned for success.”

Data User Statements

Rachel Lin, CEO and co-founder at SynFutures, shared her insights on OIS’s launch, “Teaming up with Pyth Network and Oracle Integrity Staking gives our decentralized derivatives protocol a solid foundation of trust. With data providers held accountable through economic incentives, we can rely on accurate and timely data, which is vital to our ongoing growth.”

Tristan Frizza, Founder of Zeta Markets, commented on OIS, “Pyth has been instrumental to Zeta’s success since we started. Their oracle solution has proven robust over time, and we are thrilled to see them expand to hundreds of other applications and chains across the crypto space. We are excited to see Pyth continue to innovate with Oracle Integrity Staking, which directly addresses the challenges of data quality and scalability for teams like ours by holding publishers economically responsible for price accuracy and asset coverage. This advancement brings us closer to competing with centralized exchanges across all metrics and enables us to continue to push the limits of decentralized trading.”

About Pyth Network

Pyth Network serves as a public decentralized data infrastructure that enables the next wave of financial applications. Pyth equips DeFi developers with the advanced infrastructure required to create dApps that offer user experiences comparable to traditional apps. It provides data suppliers, primarily financial institutions, with a novel means to monetize their quotes and trade data while playing a pivotal role in the emerging digital asset sector. Pyth Network underpins nearly a trillion dollars in total transaction volume across over 70 blockchains and 400 applications that depend on its quoted and traded data.

To find out more, users can visit: https://www.pyth.network/

Media Contact: press@pyth.network