Institutional exchange operator LMAX Group will provide foreign exchange and cryptocurrency trading data to the Solana-based Pyth Network.
Automated digital contracts that run on blockchains obtain financial data from oracle services, which send data from an outside source to a blockchain network. They do so arguably in a more democratized manner than traditional finance does. In some respects Pyth overlaps with Chainlink, the oracle for decentralized finance (DeFi) contracts on the Ethereum network. But Pyth is designed more for high-speed, institutional trading.
“If you look ahead, DeFi, which is currently a scientific experiment, means putting balance sheets up on the blockchain and putting assets to work and earning interest on them,” LMAX Group CEO David Mercer told CoinDesk in an interview, adding:
“Once you accept that people will expect to earn interest, and to stake products on a second-by-second, minute-by-minute basis, then the key question is how do you value this stuff?”