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The Pipeline - Episode 14 With Pyth

The Pipeline2024-02-13
282 views|3 months ago
💫 Short Summary

Mike Kahill, the CEO of Duro Labs, discusses the collaboration between pith and manad, highlighting the importance of decentralized oracles and high-performance infrastructure in the crypto space. He emphasizes pith's role in solving for the source of truth at t0 and the valuable opportunities it unlocks for the crypto ecosystem. The collaboration between pith and manad is driven by shared values and a strong focus on community, and it aims to provide users with equal access to high-quality data for making informed decisions in the decentralized finance landscape.Mike and Kevin discuss the pith network's decentralized oracle and its role in managing updates directly on the chain. They also talk about the pith token's role in governing the larger product of the pith network and the significant number of wallets airdropped and staking in the pith protocol. The video ends with Mike sharing his insight on the importance of infrastructure in technology and how people should stay optimistic as the use cases are coming with the improvements in infrastructure.

✨ Highlights
📊 Transcript
Introduction of guests: Keone, CEO of Monad Labs; Mike Cahill, CEO of Duro Labs; and Kevin, co-host.
00:01
Keone acknowledges Danny's OG pith swag with the previous logo.
Mike Kahill shares his background and how he ended up at Duro Labs and Pith.
The discussion focuses on the exciting collaboration between Monad and Pith, highlighting the optimization and efficiency in blockchain technology.
The collaboration between Manad and Pith is driven by shared values and the strength of the communities.
05:50
Community is crucial in crypto, and both Manad and Pith appreciate its importance.
Pith is designed to be a universal data primitive, constantly solving for the truth at t0.
Pith's architecture differs from other oracles in the crypto space, with a focus on decentralized and community-driven data.
Pith is solving the problem of data value and accessibility by incentivizing data publishers to contribute to the network.
10:02
Data on the open internet is becoming more limited as the value of data increases.
Pith incentivizes data publishers to contribute to the network by rewarding them based on the data's utility.
Pith's model allows for the permanent and transparent sourcing of data, solving the problem of data value and accessibility.
Pith has over 100 publishers in the network, including large trading firms and exchanges, and has solved the problem of data value and accessibility by incentivizing data publishers to contribute to the network.
14:33
Publishers are rewarded based on the data's utility, and the fee for using the data is paid in the network's native token.
Pith's architecture differs from other oracles in the crypto space, with a focus on decentralized and community-driven data.
19:10
Pith has an open internet's ability to source data for messenger style Oracle networks.
Pith incentivizes data publishers to publish their data by paywalling it and rewarding them based on the data's utility.
High-quality data is crucial for DeFi protocols and derivatives contracts, and precise pricing is important for the health of any lending protocol.
22:09
Pith's architecture allows for sustainable operation as a protocol without a permissioned instance or a direct sales team.
Pith runs a blockchain called PNET where all the publishers publish, and other blockchains have equal access to the data.
Every time a transaction is delivered to another blockchain, a small fee is paid and distributed to the publishers, but the governance determines the right equilibrium for the fee.
Pith's architecture is designed to have a sustainable business model built in, operating as a protocol without a permissioned instance or a direct sales team.
25:55
Pith's PNET blockchain and 400 symbols update a couple of times each second, with all connected blockchains having equal access to the data.
A small fee is collected every time a transaction is delivered to a different blockchain, and about 4 million updates per day can be distributed to 50 different blockchains.
The fee distribution is determined by the token holders in governance.
Pith is building a singular source with equal access for everybody, unlike Chainlink or Switchboard, which offer bespoke solutions with no scalability or benefit to other users.
29:01
Pith provides a singular source with equal access for everyone, leading to powerful network effects.
Other platforms like Chainlink and Switchboard offer bespoke solutions with no scalability or benefit to other users.
Pith's approach to Oracle data is more beneficial for users in the long run, as it focuses on building a brand new financial system with increased access and better market data.
31:22
Pith's approach to Oracle data is more beneficial for users in the long run.
It focuses on building a brand new financial system with increased access and better market data.
The speaker's 'Alpha' or insight is that LPs (Liquidity Providers) should make money, and the focus should be on building expressive and updated AMM (Automated Market Makers) models.
34:11
LPs should make money, and the focus should be on building expressive and updated AMM models.
LPs are most profitable when retail traders can net off with one another.
Payment for order flow exists because retail traders' order flow is not very predictive or favorable in the short term.
Pith is a decentralized Oracle, and the governance can manage the updates directly on chain. There was a retrospective airdrop in November, and 110,000 wallets are currently staking in the P protocol.
37:45
Pith is a decentralized Oracle, and the governance can manage the updates directly on chain.
A retrospective airdrop took place in November, and 110,000 wallets are currently staking in the P protocol.
There is a vote for the Constitution next week, and governance will be able to take the network into their own hands.
The speaker's 'Alpha' or insight is to cut up trades and use T-WAP or VWAP to reduce price impact, as making one big trade at once can result in crossing the spread deeply or being adversely selected if left in the order book.
40:11
Cut up trades and use T-WAP or VWAP to reduce price impact.
Making one big trade at once can result in crossing the spread deeply or being adversely selected if left in the order book.
💫 FAQs about This YouTube Video

1. What is the collaboration between Monad and Pith about?

The collaboration between Monad and Pith is about the intersection of finance and technology, and the optimization of infrastructure for more efficient systems. Pith's focus on being the best source of truth at t0 aligns with the goals of Monad in building a high-performance and synergetic ecosystem.

2. How does Pith's architecture incentivize data publishers and ensure the accuracy and timeliness of the data?

Pith's architecture and economic model incentivize data publishers by allowing them to publish data directly to the source and be rewarded based on the data's on-chain use. This approach ensures the accuracy and timeliness of the data by creating a synergetic and collaborative community of publishers.

3. What are the key benefits of Pith for the end user and its role in the broader crypto ecosystem?

Pith provides the end user with equal access to high-quality data and enhances the transparency and security of on-chain transactions. In the broader crypto ecosystem, Pith's role in providing a reliable source of truth at t0 contributes to the efficiency and trustworthiness of decentralized applications and financial instruments.

4. Why is the collaboration between Monad and Pith significant, and what does it mean for the growth of the crypto ecosystem?

The collaboration between Monad and Pith is significant as it combines the capabilities of both platforms to enhance the efficiency and reliability of on-chain data. This collaboration is a positive indicator for the growth of the crypto ecosystem, offering solutions that are essential for the development and adoption of decentralized finance and applications.

5. What is the difference between Pith's approach to Oracle data and other platforms like Chainlink and Switchboard?

Pith is building a singular source with equal access for everybody, unlike Chainlink or Switchboard, which offer bespoke solutions with no scalability or benefit to other users. Pith's approach ensures that as the source becomes more powerful, it benefits everybody equally, leading to more powerful network effects. In contrast, other platforms have multiple feeds that cannot communicate with each other, leading to a detriment in the quality of data and scalability issues.

6. How does Pith address the problem of outdated market data in traditional systems and other blockchain projects like Chainlink?

Pith addresses the problem of outdated market data by providing a singular source with equal access for everybody. This approach ensures that the data becomes more powerful and benefits everyone equally, leading to more robust and timely market data. In contrast, other blockchain projects like Chainlink have multiple feeds that cannot talk to each other, leading to scalability issues and outdated data.

7. What are the benefits of Pith's decentralized Oracle and how does it compare to other Oracles in the market?

Pith's decentralized Oracle offers the benefits of managing updates directly on the chain and a retrospective airdrop that involved a large number of wallets. This approach has led to over 110,000 wallets currently staking in the P protocol, showcasing the community's belief in the decentralized infrastructure. In comparison, other Oracles in the market may not offer the same level of direct on-chain management and community involvement.

8. Can you provide some insight into the trading dynamics and the use of Oracles in DeFi projects like Synthetix?

In trading dynamics, it is important to have accurate and updated market data, which can be provided by Oracles in DeFi projects like Synthetix. The use of Oracles ensures that the liquidity providers (LPs) are pricing off accurate data, creating a more sustainable business model. In contrast, LPs in environments where markets can't adjust quotes on their own may face adverse selection from arbitrageurs with better pricing data.

9. How does Pith's approach to Oracle data and infrastructure contribute to the future of decentralized finance (DeFi)?

Pith's approach to Oracle data and infrastructure is a crucial element in the future of decentralized finance (DeFi). By providing a singular source of Oracle data with equal access for all, Pith ensures the fairness and efficiency of the DeFi ecosystem. This approach allows for more powerful network effects and better data quality, ultimately benefiting all participants in the DeFi space.