In the world of finance, every millisecond can make the difference between a gain and a loss. As such, Pyth Network hits hard by launching Pyth Lazer. This new oracle solution is specifically designed for latency-sensitive DeFi protocols. With ultra-fast data streams at 1 millisecondPyth Lazer sets a new standard for the speed of sending financial data on the blockchain. This offer complements the historic product, now renowned Pythian Coreby offering DeFi protocols a choice adapted to their needs in terms of speed and decentralization.
Le Journal du Coin offers you this promotional article in collaboration with Pyth Network.
Pyth Lazer: a response to the slowness of current oracles
Oracles are an essential part of DeFi protocols. They allow blockchains to be linked to real-world data, particularly regarding asset prices. However, many oracles today still suffer from latency issues. By offering performances that do not yet rival centralized platforms, these services ultimately only have a modest reach. In fine, the slightest delay limits the competitiveness of decentralized applications compared to CEXs. Indeed, a slight delay on the competition can lead to significant risks for traders. The main ones are the front-running or losses linked to missed arbitrations. This is why in current conditions, on-chain trading could not hope to overtake its counterpart.
With Pyth LazerPyth Network solves this problem by providing near real-time price feeds. While the solution Pythian Core already offers updates every 400 milliseconds, Pyth Lazer pushes performance even further with possible updates in 1 millisecond. This new and unparalleled speed gives DeFi protocols the means to fight with their centralized competitors.
“Pyth Lazer achieves unparalleled speed that allows DeFi to not only keep pace, but surpass centralized alternatives. This solution is specifically designed for protocols that require large-scale, real-time data.”
Jayant Krishnamurthy, CTO and co-founder of Douro Labs
Key features for latency-sensitive DeFi protocols
As you will have understood, speed of execution is crucial for performance-sensitive protocols. This is particularly the case for those linked to derivatives markets, where every millisecond counts. Pyth Lazer thus allows traders and protocols to follow market movements in real time, adjust their positions instantly and reduce the risk of slippage.
Furthermore and unlike traditional solutions, where data flows are fixed and not very flexible, Pyth Lazer allows developers to choose the frequency of updates according to their specific needs. Streams can be calibrated at different speeds: 1 ms, 50 ms, 200 ms. Personalized frequencies that adapt to each usage scenario.
This flexibility allows protocols to modulate the speed of data reception according to their performance objectives. For example, a high-frequency trading protocol could choose the minimum latency of 1 ms to capture the slightest market movements in real time. Others, less time sensitive, may opt for updates every 200 ms to reduce costs.
Additionally, Pyth Lazer supports more than 1000 financial assets and is compatible with environments EVM (Ethereum Virtual Machine) et SVM (Solana Virtual Machine). In today’s landscape, this ensures seamless integration with most blockchains.
Pyth Lazer or Pyth Core: which solution to choose?
With the launch of Pyth Lazer, Pyth Network now offers two distinct oracle solutions. These each correspond to different specific needs for DeFi protocols. The old oracle solution is thus renamed Pyth Core, while Pyth Lazer is the most recent product. The choice between Pyth Lazer et Pythian Core mainly depends on the priorities of the protocol: speed or decentralization.
Pythian Corethe historic offering, remains the main solution for the majority of DeFi protocols. It is particularly suitable for applications that prioritize security and decentralization, such as borrowing and lending platforms. Thanks to its decentralized oracle network, Pyth Core guarantees a wide diversity of data sources, minimizing the risks of manipulation or incorrect data.
On the other hand, Pyth Lazer is designed for protocols that prioritize performance and ultra-low latency, at the expense of some decentralization. For these speed-sensitive applications, such as high-frequency trading protocols, Pyth Lazer represents a real competitive advantage as we detailed previously.
“With Pyth Lazer, we provide DeFi protocols with the tools needed to react to market conditions in real time. This paves the way for a new generation of decentralized financial applications that are faster, more accurate and more efficient.«
Michael Cahill, CEO and co-founder of Douro Labs
To obtain such results, Pyth Lazer uses infrastructure and data feeds provided by recognized players. For example, we find among these Jump and Wintermute. A system that guarantees optimal quality and precision for data flows, at a speed unmatched until now.
The decentralized trading market is growing rapidly. In 2024, more than 20 billion dollars were traded daily on derivatives platforms. With the launch of Pyth LazerPyth Network continues to improve the infrastructure essential to this rapidly changing industry. By offering data flows to 1 millisecondPyth meets the requirements of the most ambitious protocols. The protocol thus contributes to bringing the sector closer to the standards of traditional markets. A breakthrough that promises to further accelerate the adoption of DeFi in 2025 and beyond.
