New York, USA, September 23, 2024, Chainwire
Oracle (NYSE:) Integrity Staking enables a more secure DeFi and gives stakers the opportunity to earn yield
Pyth Network (“Pyth”), the public decentralized data infrastructure powering the next generation of financial applications, today announced the launch of Oracle Integrity Staking (“OIS”). This is the latest innovation of Pyth Price Feeds, unlocking an entirely new generation of on-chain financial data, where anyone can receive a reward for providing economic protection and data source accountability within the Pyth Protocol.
As DeFi expands, the needs of developers and users have continued to evolve. The demand for increased security and reliability in Web3 capital markets from smart contract developers and market participants has never been greater. Oracle Integrity Staking improves the accuracy and reliability of Pyth price feeds by aligning publisher and participant incentives with Pyth’s data quality and security goals. For developers, Oracle Integrity Staking means increased confidence in the data they rely on, allowing them to build fearlessly and without worrying about data integrity and security. Oracle Integrity Staking directly rewards data accuracy and performance by ensuring publishers and participants 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 ushering in 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 is simply not acceptable in our mission to create experiences on par with TradFi applications. By enabling token holders to stake and directly contribute to the integrity of our oracle services, we are strengthening the trustworthiness of on-chain data and offering unique ways for the Pyth ecosystem to actively protect the oracle network, which has facilitated nearly $1 trillion in total transaction volume.”
Pyth data publishers will earn programmatic 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 to increase the potential rewards received. PYTH stakers can delegate their staked tokens to publishers to enhance publisher rewards and earn rewards for themselves, in exchange for strengthening the integrity of the oracle data.
This contribution strengthens the resilience and security of Pyth’s price feeds; in return, PYTH stakers receive a programmatic reward for securing the oracle network and protecting DeFi. In the unlikely event that a publisher provides inaccurate data, both the publisher and the stakers supporting them will have their stake percentage reduced by 5% 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 on over 70 blockchains, the reliability and accuracy of Pyth price feeds is critical to the advancement of the DeFi ecosystem. Oracle Integrity Staking reinforces our commitment to building a safer DeFi environment for all participants. Requiring Pyth publishers to meet high standards of security, quality, and excellence is made possible by a decentralized protocol that appropriately rewards good actors while also reducing the stakes of network participants who deliver erroneous data. Through its support for over 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, introducing greater data source accountability across each feed. The key component of Price Feeds V3 is the establishment of Oracle Integrity Staking to enable Web3 developers to build fearlessly and without worrying about inaccurate or malicious data. Oracle Integrity Staking introduces a new paradigm to the oracle space, one that actively prioritizes data source accountability and protection across the oracles’ entire data feed offering, setting a higher industry standard for decentralized finance.
Quotes from data editors
Tucker Watson, Venture at CMS Holdings, commented on the launch of OIS: “At CMS, we are thrilled to see Pyth Network establish 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 use decentralized data. Pyth is not only innovating, but is also leading the charge to reshape the standards for secure and trusted data across ecosystems. We are proud to partner in this transformative evolution, driving 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 data sources, fostering a safer and more robust DeFi ecosystem. As a data provider, Flowdesk participates in OIS because it aligns our mission with data integrity. By staking tokens, Flowdesk not only contributes data, but actively aligns incentives with its accuracy and reliability. This accountability reinforces trust in the network and the broader DeFi ecosystem, ultimately leading to a more resilient and trustworthy infrastructure for all participants.”
Jordi Alexander, CEO of Selini Capital, commented on the launch of OIS: “The power of crypto is unleashed when incentive alignment fills the trust gap, which is why it’s great to see Oracle Integrity Staking empower data publishers like Selini. By staking PYTH tokens, we’re not just participating, but showing our dedication to providing accurate, timely, and reliable data that developers can trust. Oracle Integrity Staking will motivate participants to continue delivering the highest quality data and demonstrate their commitment to supporting the growth of DeFi. We’re excited to be a 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 of 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 critical to our continued growth.”
Tristan Frizza, Founder of Zeta Markets, commented on the launch of OIS: “Pyth has been instrumental to Zeta’s success 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 applications and chains in the crypto space. We’re thrilled to see Pyth continue to innovate with the introduction of Oracle Integrity Staking; directly addressing data quality and scalability issues for teams like Zeta by holding publishers financially accountable for price accuracy and asset coverage. This launch brings us one step closer to being able to compete with CEXs across 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 powering the next generation of financial applications. Pyth gives DeFi developers the supercharged infrastructure they need to build decentralized applications that deliver app-level experiences. It equips data providers, typically financial institutions, with a new way to monetize their quote and trade data, while also playing a key role in the nascent digital asset class. As the underlying market infrastructure, Pyth Network facilitates nearly $1 trillion in total transaction volume across 70+ blockchains and 400 applications that rely on its quote and trade data.
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This article was originally published on Chainwire
