🌐Pyth Network Price Oracle

The Flat Money protocol uses Pyth Network to get an accurate rETH price oracle. The oracle ensures that all the UNIT and leveraged rETH positions are priced correctly.

For each order, the user announces their order and after a short delay, a keeper executes the order with a fresh rETH price from Pyth. It means that trader orders execute on a price that is slightly in the future. This prevents traders from being able to frontrun the price oracle and profit by delayed price updates.

Using purely onchain oracles for pricing exchanges has significant inefficiencies and limitations. A more effective approach involves price feeds that are updated in a high performance environment, with their validity and recency confirmed onchain. This method offers a beneficial compromise for protocols dependent on oracles.

Pyth price feeds are engineered for speed, accuracy, and dependability, updating each second. Price updates are visible on the Pyth Network website. Each update represents a blend of prices reported by various providers.

To ensure accuracy and mitigate the influence of collusion or errors from a few providers, Pyth uses a price aggregation process. The reliability of the feeds is further enhanced by the redundancy among providers.

Learn more about the Pyth Network.