- Pyth Network’s integration with Hedera introduces over 400 real-time price feeds, enhancing blockchain financial services.
- HLiquity becomes the first Hedera-based application to utilize Pyth’s advanced data for overcollateralization.
Pyth Network, renowned for its provision of real-time market data, is poised to revolutionize the Hedera blockchain ecosystem. This collaboration will introduce over 400 Pyth price feeds and benchmarks to Hedera, an open-source, proof-of-stake public ledger, marking a pivotal advancement in blockchain infrastructure.
Great work by @PythNetwork: providing real-time market data to the #Hedera network for over 400 assets across cryptocurrencies, commodities, equities, FX, and ETFs to enhance on-chain information availability for users, developers, and institutions alike.https://t.co/rw2Q0bXADF
— Hedera (@hedera) February 26, 2024
Facilitating Economic Growth through Oracle Feeds
According to a press release dated February 26, this integration is set to play a crucial role in the blockchain domain, especially in bolstering economic activities such as lending.
Grace Pfluger, the HBAR Foundation’s Director of Business Development, emphasized the critical nature of public oracle price feeds in fostering economic behavior, viewing this infrastructure as a cornerstone for the development of innovative financial instruments on Hedera.
Pyth price feeds are designed to offer a pull oracle model, granting Hedera’s users and developers timely access to the latest price updates. This encompasses a wide array of financial products, including cryptocurrencies, foreign exchange, commodities, equities, and exchange-traded funds (ETFs), all delivered with ultra-low latency.
Furthermore, a distinctive feature of these feeds is the inclusion of a confidence interval, aimed at providing insights into current market volatility and dislocations, thereby aiding downstream protocols in their operation.
The first Hedera-based application to leverage Pyth’s advanced data is HLiquity, a decentralized borrowing protocol that allows users to obtain interest-free loans against Hedera’s token. By integrating Pyth’s data, HLiquity ensures that user vaults and the overall protocol remain overcollateralized by accurately tracking the current prices of HBAR and the Swiss franc.
A Milestone for Decentralized Finance
Pyth Network stands as a first-party financial oracle network that delivers low-latency, real-world data to multiple blockchains. Its recent initiative to launch price feeds for 13 Bitcoin ETFs on February 20 is seen as a significant move to empower decentralized finance (DeFi) platforms.
These platforms can now expand their portfolio options, enhance risk mitigation strategies, and boost liquidity by attracting institutional capital on-chain.
Hedera’s Continued Expansion and Governance
In January 2024, the Hedera Global Governing Council sanctioned an allocation of 4.86 billion HBAR, equivalent to roughly $408 million, for further network development and enhanced decentralized governance.
This initiative is part of Hedera’s broader strategy to fortify its infrastructure following its 2023 performance, which witnessed over 33 billion real-world transactions, underscoring the network’s robust and scalable nature.
At the time of writing, the price of Hedera native token, HBAR, has risen 6.67% in the last 24 hours, reaching a price of $0.1114. This represents an increase of 5.21% over the past 7 days.