HydraSwap Announces Integration with Pyth Network for Hi-Fi Market Data
HydraSwap is excited to announce the strategic integration of the Pyth Network into our DeFi to feed high fidelity market data to our smart contracts.
Through the Pyth oracle, HydraSwap smart contracts will be able to access high-quality, real world market data aggregated from the network’s coalition of primary data suppliers. This data is more trustworthy since it is sent directly to Solana nodes. It is more accurate because the Pyth oracle produces a fair representative price that is updated more frequently on Solana — which is the fastest blockchain.
Why does Hydraswap need decentralized oracles?
At HydraSwap, we are building a next generation Automated Market Maker that will generate returns similar to traditional market makers. This requires the use of a robust and high-speed decentralized data oracle.
In version 1.0 of our game-changing Hydra Market Maker (HMM), HydraSwap will offer a smarter pricing mechanism for enhancing the returns of liquidity providers while reducing impermanent loss.
HMM introduces a compensation parameter ‘c’ on top of the constant product market maker (CPMM) that takes into account an oracle price input ‘i’ to make a more informed pricing decision. For a recap, please refer to our post on HMM for more details.
But what is Pyth and how does it work?
The Pyth oracle connects high-fidelity market data from the world’s largest professional traders and exchanges. Through Solana, the DeFi industry can access this verifiable data from high-quality, low- latency nodes at the fastest bandwidth in the global blockchain ecosystem.
The Pyth blockchain price oracle manages a series of on-chain accounts, which are segregated into different types depending on the reference data received from its suppliers (product, prices, quotes, directories, mapping data). Pyth’s pricing represents an aggregate derived from multiple market “quotes” from the data providers contributing to its network.
Source: Pyth Network
Benefits for HydraSwap
Since both HydraSwap and Pyth are deployed on the Solana blockchain, Pyth-HMM performance will be enhanced. Data will be continuously updated in each Solana slot once every 400 ms, which means that our platform will be able to obtain more than 200,000 daily price updates at sub-second frequency!
By connecting to the data on the Pyth Network, LPs and traders using the HydraSwap HMM (Hydra Market Maker) have the potential to achieve superior performance through the more accurate, high frequency oracle price reference.
Regarding the integration, the HydraSwap team pointed out that “This technological integration to our platform will allow privileged access to high quality market data from some of the largest traders, exchanges and financial services players and at lightning fast speeds powered by Solana.”
About the Pyth Network
Pyth is a specialized oracle solution for latency-sensitive financial market data available on multiple blockchains. It seeks to aggregate high quality, first party data in advanced ways and publish at sub-second speeds.
HydraSwap is a Solana DEX powered by an on-chain intelligent and high-performance AMM focused on maximizing the returns for Liquidity Providers. Our vision is to create an AMM that matches the pricing sophistication and returns of specialized market makers.