Pyth Network
announced the release of its new Crypto Redemption Rate Feeds, expanding the range for DeFi platforms. The new launches bring in two fast-growing asset classes, Liquid Staking Tokens (LSTs) and yield-bearing stablecoins-opening a suite of new possibilities for developers in the DeFi space. Pyth provides feeds for cryptocurrencies and assets like commodities, equities, FX, ETFs, and these new classes.
Cryptocurrency redemption rates provide real-time valuations based on smart contracts, thereby providing accurate asset pricing reflecting the workings of a particular DeFi protocol. The rates are sourced directly from an asset’s smart contract. LSTs are complicated assets, whose values change dynamically, based on rewards that accumulate but never pay out.
Liquid Staking Tokens and Yield-Bearing Stablecoins Now Supported
Liquid Staking Tokens and Liquid Restaking Tokens onboarding are a significant milestone in Pyth’s journey to provide all-inclusive data solutions for decentralized finance applications. Liquid Staking Tokens wstETH-an Ethereum staking derivative enable developers to fetch real-time exchange rates straight from the asset’s contract and provide more accurate pricing for these complex tokens. Protocols from decentralized lending require precise exchange rates to maintain risk management
Yield-bearing stablecoins, like $USDY from Ondo Finance, are also part of this update. These stablecoins offer yield from sources such as US Treasuries, making accurate redemption rates critical for their valuation in DeFi platforms. Pyth’s new feeds cover 19 redemption rates for assets from the Ethereum Virtual Machine (EVM) ecosystem.
Pyth Network Offers Real-Time Valuations for DeFi Protocols
The expansion of Pyth Network comes as accuracy and real-time data begin to be more important in the DeFi sector. The new redemption rate feeds offer a way whereby decentralized applications can reliably access tokens’ internal mechanics for proper indication of values from assets like wstETH or yield-bearing stablecoins. This helps mitigate reliance on market prices, which are highly volatile and limits possible inaccuracies in the valuation of an asset.