Pyth Network Price Oracles to Boost DeFi in Hedera Ecosystem

Pyth Network Hedera oracles DeFi v2
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Real-time financial oracle deployment key milestone for growth

Hedera has announced that they’ve integrated the Pyth Network price feed oracles, allowing all developers to directly tap into data feeds. Community builders and DeFi developers now have access to over 400 financial data feeds. 

The native integration of the Pyth Network price oracles onto Hedera makes it a lot easier for developers to use industry leading price feeds in their decentralized applications. Therefore, these data points are key for the development of DeFi products. 

Pyth Network has built an oracle network designed to provide low-latency real-world data to multiple blockchains. This all happens securely and transparently. For Hedera developers this means that they can build DeFi applications that pull live price data from the Pyth Network oracles. Moreover, the price feeds also include foreign exchange pairs, equities and ETFs, combining DeFi with more traditional financial services. 

First DeFi dapp using Pyth

DeFi platform HLiquity is the first on Hedera that has integrated Pyth Network’s price data. The decentralized borrowing protocol allows users to draw interest-free loans against HBAR. These loans will then pay out in HCHF, a stablecoin on Hedera pegged to the Swiss franc (HCF). Moreover, they must maintain a minimum collateral ratio of 110%. 

Pyth Price Feeds allow HLiquity to actively track the current price of HBAR and CHF. This then allows them to ensure that user vaults and the overall protocol remain over-collateralized. 

Why integrate Pyth your dapp on Hedera

Pyth Network offers an innovative tech stack that serves as a direct countermeasure to bad data. The oracle platform also helps to ensure that DeFi dapps work on sound foundations that everybody can trust, paving the way for mainstream adoption. For example, Pyth’s real-time data can better inform lending and derivative protocols about unusual market events, keeping users and funds safe. 

In short, Pyth Network adds a trust layer thanks to its price feed’s unique oracle architecture. It generates low-latency and high-resolution data to ensure accurate trades. Hedera believes this will cultivate DeFi on Hedera, helping developers define the future of finance. 

Hedera has posted a guide on how to integrate Pyth oracles into DeFi dapps. Their resources include a Github repository, tutorials and more. Learn more here.

Hedera set for DeFi growth

DeFi on Hedera is still in its infancy. With SaucerSwap, the blockchain ecosystem already has a DeFi platform that attracts thousands of active wallets per month. With a total value locked of roughly $150 million, SaucerSwap is far ahead of the competition. For example, Pangolin Exchange has $32 million in TVL, while HeliSwap has a mere $100,000. The TVL for Hedera, as measured by DappRadar, has surpassed $16.5 million. 

Growth can happen fast when developers have the right tools at their disposal. The integration of Pyth Network’s oracles will ignite a new wave of excitement among developers in the Hedera community. Moreover, this could potentially also make it interesting for existing DeFi behemoth to spread out to and embrace the Hedera ecosystem. 

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