How Pyth Network is Helping Protocols on Solana

Next-Generation Oracle Solution

Pyth Network, the next-generation oracle solution, collaborates with Solana protocols, providing first-party price data for on-chain applications.

Pyth Network has been powering multiple prominent protocols on Solana, including 01 exchange, Bonfida, Zeta, Friktion, and Solend. Access and distribution of live and historical financial market data are still controlled by very few players and are hard to access. The Pyth network aims to make this valuable financial market data accessible to everyone through a next-generation Oracle solution.

‍"We're proud to support and empower so many innovative use cases across the Solana ecosystem. Pyth has always been about bridging the gap between DeFi and what TradFi is capable of,” Pyth Network shared with Web3Wire. “Our next steps are to make our high-fidelity data feeds available across other chains through Wormhole. We aim to support builders from any ecosystem and to bring them the best data to power what they're building."

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Diverse Use Cases

Let’s have a look at how Pyth is helping some protocols on Solana:

Bonfida:  One of the core products offered by Bonfida is the Solana Name Service (SNS). In order to provide users with a better experience, Bonfida offers SNS with nine different assets, including $SOL, $FIDA, $USDC, and $SRM. With the addition of Pyth price feeds, Bonfida further ensures that fair prices are applied regardless of the different currency options available.

Zeta: Zeta receives per slot asset price updates for their Decentralized Exchange(DEX) from the Pyth Network oracle. The goal is to make sure their on-chain pricing is accurate and that their platform security mechanisms are working as expected. Further, Zeta's option contracts have expiration dates, so a settlement price is required. The protocol relies on the Pyth Network to make settlement prices available for their DEX and their FLEX products.

Friktion: With Friktion's Volts, users can implement automated, risk-aware yield strategies such as covered calls, cash secured puts, volatility harvesting, and basis yielding. In their new Entropy Trade platform for power and volatility perpetuals, Friktion leverages Pyth's prices to determine funding rates on BTC²-PERP.

01 Exchange: Using the Pyth Network Oracle, 01 Exchange can determine accurate index prices, which are used for funding payments across perpetual futures and power perpetuals. In this way, they can ensure that their margining system and liquidation process function efficiently. 

Solend: Solend is an algorithmic, decentralized lending and borrowing protocol. Solend allows anyone to: earn interest, borrow, leverage long, or leverage short. Using Pyth's price feeds, Solend identifies a user's account health and marks unhealthy positions for liquidation.

For Decentralized Finance (DeFi) to grow, we need high-fidelity, real-world data that is made available on any L1 blockchain straight from the source. Unfortunately, the availability of financial market data is often restricted to a small number of institutions and users. Pyth offers valuable financial market data to the general public by incentivizing market participants - trading companies, market makers, and exchanges. 

Participants share price data directly on-chain, gathered as part of their existing operations. Eventually, the network aggregates this first-party price data (still on-chain) and makes it available for both on-chain and off-chain applications.

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What is Pyth Network:

The Pyth Network is a specialized Oracle solution for latency-sensitive financial data. The network is focused on developing a new and low-cost method of bringing this unique data on-chain and securely aggregating it. The Pyth Data Association was founded to support the Pyth network and is governed by a board of directors elected by Pyth network members.

What is Bonfida?‍

Bonfida is a full-featured product suite that aims to bridge the gap between Serum, Solana, and the end-user. Bonfida is the flagship Serum GUI and brings Solana data analytics to the field. Bonfida also aims to build a decentralized name service and a platform for NFT exchange on Solana. In addition, the utility token FIDA can be used to vote on the protocol's future. Bonfida is backed by A.K.G Venture, Alameda research, Divergence, Evernew Capital, Koinbros, etc. 

What is 01 Exchange:

01 is a fully decentralized order book-based derivatives exchange on Solana. It supports perpetual futures and power perpetuals. With deep integration with Project Serum, 01 integrates an on-chain limit order book, cross-collateralization, powerful cross-margins, and yield-earning deposits without sacrificing decentralization. 

01 is backed by Multicoin Capital, Alameda Research, Ledger Prime, Bitlink, Solana Capital, and, Pattern. 

What is Solend:

Solend is an algorithmic, decentralized lending and borrowing protocol on Solana. Lending and borrowing have proven to be critical in a DeFi ecosystem. Current products, on the other hand, are slow and expensive. According to the Solend docs, Solend can scale 100x faster and 100x cheaper on Solana. In addition, Solend strives to be the most user-friendly and secure solution on Solana.

You can use Solend to:

• Earn interest
• Borrow
• Long-term leverage
• Short

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What is Friktion: 

Friktion is a DeFi portfolio management protocol that runs on the Solana network and is designed to perform across market cycles. It is an asset management tool that automatically allows users to maximize returns while mitigating risks by employing 'Volts' strategies. 

The platform provides both active and passive portfolio management strategies. It is essentially an Automated Portfolio Manager (APM) that was created to identify long-term sources of yield and introduce risk management into the ecosystem via options and non-linear products

What is Zeta:

Zeta Markets is a sophisticated under-collateralized derivatives platform on the Solana network. It provides liquid derivatives trading for individuals and institutions. It is a revolutionary platform that allows all interested parties to hedge risk against crypto market movements and events.