Hi,
I hope I’m posting to the right category…
I just stumbled upon a video presenting a new player in the oracles and price feed field, which is called Pyth Network:
It seems quite interesting and I would like to post it here as it may bring some value to MetalSwap project.
Thank you and keep building!
Hi @francorg ,
Thank you for this interesting technical point.
Assessing the potential transition of MetalSwap from Chainlink oracles to those of Pyth Network requires a deep analysis under multiple technical and strategic aspects. Our integration with Chainlink is not solely a technological choice but a strategic decision rooted in the operational needs and core values of MetalSwap.
Here are some key points that highlight the issues in moving to a new oracle system:
Technical Complexity and Architectural Reconsideration: MetalSwap’s foundation is closely integrated with Chainlink’s infrastructure on Ethereum, leveraging not only the flexibility and vastness of data offered but also native compatibility with the Ethereum ecosystem. Considering the adoption of Pyth Network, originally on Solana and now expanding towards a multi-chain presence, presents significant challenges. This change would imply not only a replacement of oracles but a significant restructuring of MetalSwap’s smart contracts. Interoperability between Solana and Ethereum, although technically feasible, introduces additional complexity, requiring the implementation of bridge mechanisms or cross-chain communication that could affect data latency, cost management, and overall security.
Reliability and Security: Chainlink has demonstrated exceptional reliability and security in the oracle blockchain space, thanks to its decentralized architecture and data aggregation mechanism. These aspects are crucial for MetalSwap, especially considering our emphasis on hedging solutions and derivatives. Chainlink’s robustness in protecting against manipulations and providing accurate data is fundamental to us.
Data Coverage and Customization: Chainlink offers us unparalleled versatility in the selection and aggregation of data sources, essential elements to support a wide range of assets and complex hedging strategies. Chainlink’s ability to customize oracles for specific use cases allows MetalSwap to tailor solutions to the unique needs of the derivatives market and real-world assets.
Strategic Considerations: Beyond technical aspects, it’s essential to consider the ecosystem and community that Chainlink has built. Collaborating with Chainlink opens the doors to a vast network of partners, resources, and opportunities for innovation that go beyond mere data provision, contributing to the growth and long-term success of MetalSwap. An example is the recent Recall Pool that integrates a Chainlink technology like Automation and CCIP.
While we recognize the value and potential of systems like Pyth Network, specialized in high-fidelity financial data, our current alignment with Chainlink reflects a considered choice that balances advanced technical needs, security, reliability, and an overall strategic vision.
Clearly, we always take into consideration new technological realities, especially when there are incentives to do so that can support the development burden and at the same time encourage the community (as happened, for example, for the OP grant we obtained).
I agree with @StillWaitingForEthKi StillWaitingForEthKi
In my opinion, Chainlink’s technology is definitely the most tried and tested and efficient in the industry, and it also offers important technological development by integrating the new technologies it offers, and NFT Staking in testnet now is a good example of this.
Many thanks also to @francorg francorg for this report! Topics such as these are always more than welcome as they open up new realities for analysis and discussion that can lead to new developments.