Pyth Network, a prominent oracle network, has expanded its presence in the decentralized finance (DeFi) market with the introduction of a new feature called Redemption Rate Feeds. This announcement was made on October 24th. The Redemption Rate Feeds (RRF) offer real-time valuations for liquid staking tokens, restaking tokens, and yield-bearing stablecoins. By providing this feature, Pyth Network (PYTH) grants the broader DeFi market access to pricing data that is not typically available through traditional price feeds.
The practical implication of this development is that DeFi platforms can now access precise valuation data for complex assets. This is particularly significant for derivatives such as liquid staking tokens and yield-bearing stablecoins. The RRF differ from market price data as they include accrued rewards and interest, which are obtained directly from the smart contracts of the underlying assets.
The redemption rate feeds operate by providing live values of tokens, with the data being sourced directly from the smart contracts of the assets. These valuations are permissionless and can be accessed by DeFi builders across the ecosystem. Initially, Pyth Network’s redemption rate feeds will cover 19 real-time values on Ethereum Virtual Machine (EVM)-compatible networks. This includes tokens such as Crypto.com staked ETH (CDCETH), Mountain Protocol’s wUSDM, Ondo Finance’s U.S. Dollar Yield (USDY), and Ethena’s USDe, a synthetic dollar. Additionally, the feeds will include ETH staking pairs like Coinbase wrapped staked ETH (cbETH) and Rocket Pool’s liquid staking token rETH.
Pyth Network’s product has entered the market through strategic partnerships with market makers, lending protocols, aggregators, and derivatives providers. Some of the launch partners include Ionic, ZeroLend, UniDEX Exchange, and Polynomial.
In related news, “DeFi Days” has been launched by RARI Chain and Arbitrum, offering $80k in rewards. Cardano has also tapped into $1.3 trillion BTC liquidity through the BitcoinOS bridge.