Pyth Network, a provider of real-time market data for blockchain applications, is set to introduce price feeds and Pyth benchmarks on Hedera, an open-source proof-of-stake public ledger. In a press release on February 26, it was announced that over 400 Pyth price feeds will be launched on Hedera. Grace Pfluger, the Director of Business Development at HBAR Foundation, stated that the Pyth price feeds will offer a pull oracle design that will allow Hedera users and developers to access the latest price updates for various assets, including cryptocurrencies, foreign exchange, commodities, equities, and exchange-traded funds (ETFs).
One of the features provided by Pyth price feeds is a confidence interval feature, which will inform downstream protocols about ongoing volatility and market dislocations. The first application on Hedera to integrate with Pyth data will be HLiquity, a decentralized borrowing protocol that enables users to obtain interest-free loans using HBAR tokens. HLiquity will utilize Pyth data to track the current prices of HBAR and Swiss franc prices to ensure that user vaults and the overall protocol remain overcollateralized.
The Pyth Network serves as a financial oracle network that provides real-world data with low latency to multiple blockchains. In February, it launched price feeds for 13 Bitcoin ETFs, aiming to expand portfolio options, enhance risk mitigation strategies, and increase liquidity for decentralized finance platforms. By attracting institutional capital on-chain, these price feeds could have a significant impact on the market.
In January 2024, the Hedera Global Governing Council approved the allocation of 4.86 billion HBAR, equivalent to approximately $408 million, for further development and advanced decentralized governance. These funds are part of Hedera’s efforts to strengthen its foundation after a successful 2023 performance, during which over 33 billion real-world transactions were conducted on the network.