LMAX Digital, which has recorded over $6.6 billion in cryptocurrency trading in one day, is the first exchange to join Pyth, a decentralized financial market data distribution network built on the super-fast Solana blockchain, which is backed by FTX chief Sam Bankman-Fried and Chicago-based Jump Trading, among others.
Automated digital contracts that run on blockchains obtain financial data from oracle services, which send data from an outside source to a blockchain network. They do so arguably in a more democratized manner than traditional finance does. In some respects Pyth overlaps with Chainlink, the oracle for decentralized finance (DeFi) contracts on the Ethereum network. But Pyth is designed more for high-speed, institutional trading.
“If you look ahead, DeFi, which is currently a scientific experiment, means putting balance sheets up on the blockchain and putting assets to work and earning interest on them,” LMAX Group CEO David Mercer told CoinDesk in an interview, adding:
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