Beating Yesterday #08: Dissecting PYTH's Bullish 100% Rule

Yeah, it's some like let's say at least stressful events not just there, but in many places, right? But I mean, we've gathered to discuss another topic. So I see we now have kind of all the speakers here that we've been expecting. We have quite some people who have joined. So welcome everyone again to the beating yesterday, X-Paces, which we do weekly here at 2PM UTC time. This basis is hosted by FBYT, which is where we've been building the decentralized asset management layer for Internet capital markets. And very much so been building it wouldn't be possible really without the PIT infrastructure, which we are looking forward to kind of learn and present more about today. And yeah, so we're done in mind. Yeah, I'm actually curious maybe we can start. So were you with PIT from the very start or maybe because I see you've been for quite some time with the company? So I think PIT really got off the ground about five years ago maybe. I think 2021 is when PIT launched on Solana Mainnet. It's very first Oracle program where I think they had about 20 or 30 price feeds live for DFI apps to integrate with. And I've been for a bit more than three years, summer 2023. So I joined about two years after the launch when there was no marketing team. It was just a two or three guys just doing a bit of dev route community and marketing. So I was very much the first, I'd say, professional marketing hire and build out the team as we go. And probably at the time was a 20% percent team. And now we're about 50 or 55 total contributing to the network. Yeah, it's been a hell of a ride. Awesome. Awesome. And maybe for the people who don't know what is PIT or haven't heard it or maybe they've heard it, but it's like can you explain kind of like in simple terms, what do you guys offer, who are your clients, what's your services? Yeah. And so I won't get to into how it evolved because it evolved a lot. But today PIT provides market data. So if you know Bloomberg, you know you can plug into the terminal and get access to the price of thousands of financial assets. Well, PIT does this for a mix of 400 plus assets now. So crypto, stocks and so on. So if you're a builder, an application, a trader that needs real-time market data, PIT can help you get access to that with its own proprietary price feeds pretty much. So I want to integrate in my, I don't know, my AI agent needs some tokenized stocks price to, you know, do some arbitrage on some, for example, where you could integrate PIT to get real-time access. And a bunch of other use cases, so and give you a couple examples that we'll talk to many. The lights of CalShi in polymarkets use PIT for their AWUA and commodities, market prediction markets, the biggest exchanges use PIT as a price source on their purpose change. So the Binance, Tradex, YZ, OKX all use PIT on their AWA perpetual markets. And we work with a few AI companies that integrate PIT as a source for their agents to do qualitative search on the net as well as an quantitative research with price data. Awesome. Yeah. Yeah, absolutely. It's been an indispensable infrastructure also for us here at the VIT. And Dimitri can maybe, whenever you can chime in, can share more. The co-founder and project officer has been, he's chosen PIT as really like, again, like we couldn't build what we built without PIT because like we need pricing data for crypto assets, for the tokenized stocks. And yeah, I guess. And then you serve not only Solana based companies, right? Or is that? Oh, yes. And that's a bit more about the history of PIT where it started as an Oracle as people described. We pretty much took information that was available in the real world of blockchains and made it available to blockchains. And so PIT, a very first version, was built directly on Solana. So every slot you have a bunch of prices that were pushed on the blockchains. So I mean, the early users were like drift, zero one, zero one. And a few of these perp decks is that started and the Solana and the Caminos. And so that was the very first step into the test of what is PIT doing different from a bunch of other Oracle's where it gets data from first party data providers. So that means that we don't scrape data from public APIs. We don't, you know, there's no hops between where we get the data PIT said, okay, we know the biggest trading firms in the world, jump trading, virtue. And a few others that I can't recall and they said, okay, let's see how we can build this new Oracle that, you know, Chainlink is now doing the same and doesn't compete with us on that front where the very first version was blockchain base and Solana base. About a year, a year and a half later, PIT launched its own, it's Solana fork. It's fork, we fork Solana and we called it PIT net. So it's pretty much, it was pretty much the same code base where we said this is where we are going to produce the prices and people will be able to, they will be able to send these prices with cryptographic verification to many other blockchains. So I think at some point we were live on close to 120 blockchains. So when every L2s and new EVM were launching, we were launching there. So DeFi apps could use us. So there was the, yeah, I guess DeFi summer and so on where PIF developed technology to go further than Solana. And about, I'd say, two, a year and a half, two years ago, we developed a new infrastructure that we call laser that is very low latency that can produce prices down to 1,000 seconds. And there the focus was not blockchain per se. And now, I think our business is likely, and the revenue we create, we generate, is likely about 80% for off-chain applications and companies. So we work with the biggest market makers in the world who use our data, they're not on any blockchains. They just want to connect to our API and get the data. The Binance, the OKX, the Bybit, they're not blockchains. They just want the API access. So we provide both. But now we don't make the distinction of being a blockchain oracle, which, I mean, the chain link, redstone and a few others are very much onto. Now we are a market data platform. And that's how we describe ourselves today. Yeah, awesome. Awesome, awesome. Man, I'll jump in. Yeah, one question that I wanted to ask, you know, because I know so many people in a space, you know, like they're not even aware of the importance of pits and data in general, because they realize so many people use it, but they're not even aware that they're using it. And now you kind of expand it to stocks, you expand it to prediction markets. How do you see like the whole scene of all these things evolving in the future? Well, and that's one thing that it's not solely on blockchains and, you know, DeFi users that do not know the importance of market data. Even for the common man that just, you know, is a bit interested in finance, you know, he can go on Google to there, or I mean, I guess quad or whatsoever. He's going to ask the price of Apple and he's going to get the price from Yahoo Finance or whatever other provider that does, you know, gives you the price of Apple 15 minute delay. But they don't know that the market data industry last in 2025 was a 50 billion industry. So there's a lot of money in that industry, but no one really knows or cares unless you're in the industry. And so that's one thing where maybe PIT is never meant to be, you know, a broad, you know, retail known brand because it's not what it's supposed to do. And the market data industry is super interesting because it's very concentrated, monocled, and super expensive because the ones that are owning the data do not want to give it free. So the biggest exchanges in the US or worldwide are making a ton of money and likely close to 50% of the money they generate is from reselling the data they create. So I mean, we try to do our best on the marketing side to be known to many or to as many as possible, especially since we have a token, you know, we want people to know about it. We want people to feel confident about holding the token and, you know, and be part of the story. So yeah, I mean, I think it's, I don't really have a, you know, one sided answer here. It's not a known industry because it's kind of unknown and as well as we, hopefully, we make it known to as many as possible. No, but that is also frankly why it's interesting for me to learn more about it because that's actually, you know, even looking outside of, like within crypto but outside of crypto, I think like many of the things that are not very well known or understood are huge markets, huge opportunities. Exactly because not a lot of people or only people with domain knowledge are kind of looking into and building that they are right. So curious like you mentioned, and this is what we've said as kind of the topic here of this conversation, right? You mentioned you have a token, which is really, I guess the reason why the retail might come across the Pete's brand and potentially, you know, your product. So can you give us like an overview of the token like when it started, how was it started? So I think TGE was being three years ago in November. I think it was over like a break point in Amsterdam if I remember correctly. Maybe we launched the Air Drop checker in Amsterdam and got people excited there. But yeah, so it's almost a three year old token now, which has had some utility over the course of the history of the protocol. About two years ago, it was announced and used as a bit of an insurance, a bit of an insurance as you, as a token holder, you could stake your token. So first of all, it's a governance token. So you can today stake your plethe on our governance website. So you can vote on proposal because lots of things are happening on the Dow and the governance side of things because it's up to everyone to propose stuff that they want to see happen in the network and people to vote on, to decide if it passes or not. So first of all, governance token. Then it was used as a bit of an oracle integrity staking. So saying I could stake my token on data provider that would provide a bunch of prices to, let's say, a thousand price fees. And it could be used as to a slashing mechanism to penalize a data provider if he provided wrong data. So that was used and it was, you know, there was like some six or eight percent API on that staking. So for your staking, you would get rewarded every week. You could get your, I mean, I guess compounded it over here, but you're eight percent. And so that was stopped, I think, about six months ago because there was no incident and there was no real security in this. So we said, okay, let's cut it off and stop inflating the token even more. And now there's no, I mean, there's nothing you can get by staking the token in terms of either FY or advantages. You just stake as part of governance. But what has happened the past year is that we've gone the way the revenue.