Although the market was uncertain for the past week, one event stood out. Bitcoin crashed to $5,400 on the Pyth Network oracle’s BTC/USD feed on September 20th.
Pyth, an oracle network built on Solana, aims to connect blockchains and real-world information. This is highly needed in the field of cryptocurrencies to provide relevancy, accuracy, and interoperability.However, on September 20th, between 12:21 and 12:23 UTC, the Pyth BTC/USD aggregate price “had several sharp dips below $40,000, reaching as low as $5,402 and the confidence intervals became extremely wide.”This became clear following multiple reports and an official blog post on behalf of the team.
BTC/USD Price and Confidence Pyth Network. This caused problems for applications that relied on Pyth price feeds but did not use the confidence interval price.
“This allowed liquidations to take place even though the published prices were highly uncertain,” – explained the Pyth team.
Chainlink, an Ethereum-based competitor and veteran in Oracle feed, took note of the incident and criticised Pyth for inaccuracies with its oracle data.
Although “data accuracy” is one of Pyth’s main selling points, it is also one of their weakest design points.
Their aggregated weights sources by their confidence threshold, but the oracles are able to report any confidence threshold value they wish.
The team at Pyth Network explained in detail the causes of the flash-crash. One was that two publishers had published near-zero prices for BTC/USD. Developers are making changes to “reduce the probability that publishers produce incorrect prices due to software errors.” They will first make changes to reduce the chance that publishers create incorrect prices due to software bugs. Next, developers will adjust the aggregation algorithm to properly weight prices that span multiple values. And last, but not least, developers will also be creating enhanced documentation, example codes, and best practices to integrate with Pyth.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.