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209 days ago

Gelato partners with Pyth to bring market data to L2 chains

Gelato's Rollup as a Service (RaaS) allows developers to deploy tailor-made L2 chains effortlessly with just one click, complete with native Account Abstraction with 19+ out-of-box infrastructure partners. Pyth is enriching Gelato’s Rollup marketplace offering by providing on-demand real-time price feed market data for enhanced DeFi applications on Gelato’s L2 chains.

Pyth Network: Deliver Real-Time Market Data

Traditional oracle models utilize a push model, where oracles continuously send transactions to reflect price changes leading to inefficiencies. Pyth Network uses a pull price update model, where users can pull the latest prices on demand. This leads to gas efficiency and a more accurate price. For example, Perennial protocol Reduced the trade settlement time by 97%, reducing significantly the value leakage to arbitrage.

Projects building on top of Gelato RaaS have an opportunity to integrate Pyth’s oracles on Genesis block accessing real-time digital asset prices that are 5-10x more accurate compared to traditional oracle sources with price-feed updates as frequent as 400 ms.

This is especially valuable for DeFi projects like perpetual or lending & borrowing protocols that can now unlock a dedicated access line to 350+ data feeds, with 90+ major market participants — including Jane Street, CBOE, Binance, OKX, and Bybit pushing more than +50 million price feed updates daily, making their custom L2s supercharged with accurate real-time market data.

Use Cases

  • Lending and Borrowing: Lending and borrowing protocols hinge on having immediate and precise market data for optimal loan management and collateral assessments. Gelato RaaS's partnership with Pyth ensures that these protocols have access to real-time, accurate market information, fostering precise collateral valuations and enhanced insolvency protection.

  • Stablecoins: Maintaining accurate collateralization is crucial for stablecoin performance. It demands continuous and precise market data. Through the partnership with Pyth, stablecoins integrated with Gelato RaaS benefit from real-time financial data, ensuring the coin's stability and streamlined operations.

  • Decentralized Derivatives Markets: Decentralized derivatives markets depend on accurate, real-time market data for proper contract execution. Partnering with Pyth ensures that traders receive dynamic funding rates and reliable settlements from up-to-the-minute market data.

To learn more about Pyth, we encourage you to check out their docs.

About Gelato

Gelato is a Web3 Cloud Platform empowering developers to create automated, gasless, and off-chain-aware Layer 2 chains and smart contracts. Over 400 web3 projects rely on Gelato for years to facilitate millions of transactions in DeFi, NFTs, and gaming.

  • Gelato RaaS: Deploy your own tailor-made ZK or OP L2 chains in a single click with native Account Abstraction and all Gelato middleware baked in.

  • Web3 Functions: Connect your smart contracts to off-chain data & computation by running decentralized cloud functions.

  • Automate: Automate your smart contracts by executing transactions automatically in a reliable, developer-friendly & decentralized manner.

  • Relay: Give your users access to reliable, robust, and scalable gasless transactions via a simple-to-use API.

  • Account Abstraction SDK: Gelato has partnered with Safe, to build a fully-fledged Account Abstraction SDK, combining Gelato's industry's best gasless transaction capabilities, with the industry's most secure smart contract wallet.

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