By
Bena Ilyas
April 16th, 2024
The LMAX Group will provide financial data to the Pyth Network using oracles which will further facilitate high-fidelity real-time trading on the decentralized blockchain network.
The Solana-based Pyth Network is all set to receive FX and cryptocurrency trading data from institutional exchange operator LMAX Group. Pyth is a decentralized financial market data distribution network built atop the Solana blockchain.
The latest announcement also makes the LMAX Group the first digital exchange to join Pyth. Currently, blockchain-based automated digital contracts consume financial data through oracle services. Compared to traditional finance, this is a more democratic way of sharing financial data.
So far, Chainlink’s (LINK) oracle service has pioneered the services of decentralized data distribution for DeFi applications on Ethereum. Pyth overlaps Chainlink’s oracle services to some extent. Besides, it has been optimized to serve institutional clients that need high-speed trading with low latency. During an interview with CoinDesk, LMAX Group CEO David Mercer said:
“If you look ahead, DeFi, which is currently a scientific experiment, means putting balance sheets up on the blockchain and putting assets to work and earning interest on them. Once you accept that people will expect to earn interest, and to stake products on a second-by-second, minute-by-minute basis, then the key question is how do you value this stuff?”
A number of big players have recently shown interest in providing data to Pyth users. The LMAX Group joins GTS in this mission.
GTS Facilitates Cross-Asset Market Data to Pyth
Earlier this month, leading electronic market maker GTS announced joining the Pyth network. GTS will run an independent node on the Pyth Network which will allow it to directly push the data. Thus, it will allow Pyth to make real-time pricing available for the first time to high-performance blockchain networks. Ari Rubenstein, co-founder and CEO of GTS said:
“Real-time market data content across asset classes will be a giant step forward for developing decentralized finance/“DeFi” applications. For DeFi applications to mature, the sophisticated integration of asset pricing that GTS excels in is an imperative. Our participation in the Pyth Network lends a solution to a long-standing gap in real time public blockchain distribution of financial data.”
The Pyth Network is slowly emerging as a next-generation oracle solution provider “of high fidelity, fully streaming financial data”. This will help to move the global trading market towards further decentralization.