The Price of Everything. Accessible to Everyone.

Transcript

[music] >> J'aime j'aime everyone. Overall, thanks for coming. All right. Uh so, I'm Marc Teboulle, uh by the accent you'll notice, but I'm French. I'm a director at the Pyth Data Association. Uh it's a Swiss non-profit and one of the two main entities that contribute to the Pyth network. And the TLDR of Pyth is to bring the price of everything to everyone at any time everywhere.

And sadly for you this afternoon, I'll talk about likely about the least sexy things around markets, market data, and market structure. So, hopefully you will not fall asleep before the end. And overall, it'll follow like five verticals. The last two mostly around the Pyth network, uh but first we're also going to why we built Pyth, why it makes sense we feel, and why there is like a great opportunity uh to redesign market data. The whole market industry come a bit like how blockchain have changed how trading happens. It's not just happening on

centralized exchange anymore, whether it's TradFi or crypto, uh but how everything's become 24/7 accessible to to everyone. So, first, why does Why do we need a new type of market data provider? Um and if you know a bit about Pyth, I will not mention the word oracle. It's it's a it's a term for for before. But overall, if you come from TradFi, the one thing, if I ask you about market data, usually the first thing you'll say will be it's freaking expensive and it's a nightmare to get good data.

Um and overall, like TradFi as we know it was built, let's say, 30-40 years ago and mostly it wasn't built by technology, but it was built around regulation and laws. Um and why do we care at Pyth about market data? Most people in crypto don't know, but market data is a $50 billion industry. Every year about 20 to 40 companies make 90% of 50 billion. This is like a top 10 coin in revenue. And for 40 years it's been doing the same.

And if in case you don't know, um TradFi exchanges like ICE, Nasdaq, NYSE, 30 to 40% of the revenue comes from selling market data. You take the example of Binance, of Hyperliquid, of anyone in crypto, they make zero. So, Pyth came from the realization that the whole market data uh industry was designed in a bad way. And actually it was kind of a legal discovery or legal eureka that pushed us to launch Pyth.

Pyth was created by um trading firms mostly, and trading firms trade any asset in the world most of the time 24/7, but they create a ton of data. And the whole goal was to aggregate a ton of trading firm contributing private data so that Pyth could aggregate and then redistribute. And all this to bypass the monopoly exchanges have. Um and why does Pyth work today and make sense today?

A bit like how technology, iPhones, etc. brought where we are today, is everything has to be accessible 24/7, accessible to everyone, ideally programmable through smart contracts. And all of this combined makes a great case for also redesi- redesigning how market data should get built, distributed, and sold to everyone. So, Pyth overall, and how I explain it to my parents, it's Spotify. Very much Pyth sits at the middle.

On the supply side, we have these trading firm exchanges, anyone that creates proprietary data can contribute it to the Pyth network. Pyth aggregates it, and then we can distribute it to whomever might need financial data. Whether you're an exchange or DeFi app, a professional or retail trader, you can buy Pyth data. And very much Pyth, the whole idea is not to like recreate this oligopoly previous exchanges and those enabled, but enable anyone that has valuable private data to contribute it.

We aggregate it, and we work on the distribution. And this is overall behind me how Pyth is built. At the core, like the fuel of the Pyth network, it's all the companies, mostly trading firms, that contribute their data to the uh Pyth price layer. Um and all these entities, trading firms, what one thing that has taken a taken us quite some years, but we landed some great names. Whether it's Citadel's, GTS, HRT, DRW, Jump Trading, Susquehanna, all these guys, they've forever been spending millions of dollars per year buying market data from exchanges.

They created ton of data. Now, we enable them to contribute it to the oracle, to the Pyth price layer, and get paid for it. And what's great by onboarding entities like Jump Trading and all these guys, is that they trade all type of assets in the world. So, very much we have coverage for about like 3,000 assets today coming from US equities, the biggest commodities, US bonds, FX, crypto, anything you wish. And very much the idea is to provide convenience. Like today, when you buy market data, usually if you want to trade US stocks, you have to go to NYSE. If you want to trade

commodities, you have to go buy ICE data. Crypto, you just connect yourself to Binance API. With Pyth, the idea is that that's great, it goes fast, but it also tons of convenience. You just need one data vendor, one API, and you get access to all the price feeds, all the assets price you want. And as I mentioned earlier, when we started early '21 publicly, we were kind of we landed in the blockchain oracle category, which over time didn't make sense for us because arguably most people can land a transaction with data inside on a blockchain.

And this is just infrastructure. And infrastructure, you never have tons of edge, and it will get commoditized over time. But one thing, as we designed it and we were a bit unaware, all our power was behind the data. Back then, 5 years ago, no blockchain oracle had US equity price feeds. Pyth, we had 200 from day one. It was barely used. Nowadays, it's used a ton with hyperliquid, tradex YZ, etc. But early on, we had access to data product no one cared a lot about, but we were able to do it.

And so, nowadays, and actually a pretty fun point is 90% of Pyth revenue today is coming from off-chain participants. Centralized crypto exchange, trading firms, fintech app, but very little from DeFi apps. Cuz also like centralized or off-chain application industries know that the data they used to buy used to cost them a million, 2 million, 3 million per year. Now with Pyth, they can cut their cost by 10 to 50x.

And building data, providing data, especially for big company, you either have and you have multiple ways to achieve trust and reach a trust level where entities are willing to spend bunch of money on your product and use it in very critical system. With one thing we very early on uh understood and focused on was trying to get data no one else had before. So, having Jump Trading, Jane Street, Susquehanna giving you price feed at first, like 5 years ago when I was saying this to DeFi developers, they were like, "Yeah, you're just lying."

They wouldn't give the But as you anonymize it, aggregate it, distribute it, all these entities being customer and spending millions per year buying data understood that they could flip the table and actually be the ones producing the data and reaping the benefits. The other thing that's great, so I mentioned that 90% of the Pyth revenue today is off-chain. We still are very crypto-native. I mean, we have a token, we have a DAO, etc. But very much all the data we provide and create comes with cryptographic proof. So, whether you are a DeFi app or whomever that needs a price feed authenticated verified

and used in a trustless manner, you can send Pyth data on over 100 blockchain. And one thing um that Pyth always focused on coming from a very TradFi trading background was applications, companies that offer trading services. Uh three, four years ago, it was the big um on-chain per decks's um industrial vertical. Nowadays, pretty much hyperliquid ate everything. But, overall, if you do trade perps, crypto perps, or on-chain perps, and even off-chain with Binance, Coinbase, there is a 90% chance that the price feed behind the perps you use is using

Pyth. Tradewyz, Coinbase, Binance, pretty much you look at the top 10 crypto exchanges that offer whether commodities or equity trading, it will use Pyth price feeds. Because, as I mentioned, once you integrate Pyth, on the same endpoint, you get FX, metals, commodities updating as fast as 50 ms. And this is a very convenient and cheap product for all these companies. Um as of today, we have about sev- 700 or more um applications, or what is companies, using Pyth data.

Um we've secured in trillions, but more to come, I guess, um in value. And this is also why Pyth we early on focused a lot on trading compared to other aspects of the industry like ball lending, etc. Because you have way more value generated in creating around trading. Like, every minute, there is millions of trading volume on hyperliquid. On Ave, you maybe have like 100 million moving per day. So, very much Pyth day one focused on trading experiences, trading companies, because this is where most of the value sits.

And so, who publishes? So, this is also why Pyth was very successful in the beginning. We managed to attract very big trading firms that usually you either don't know the name about or just don't want to work with you. Um and over time, which is pretty fun, is that TradFi behavior is the same as crypto participant in the trenches. If one does something, everyone's going to follow. And the hardest part was maybe the first 6 months to get 10, 20 enterprise to give us data.

And afterwards, it was pretty easy because they were like, "Oh, my competitor gives data to Pyth. I must be missing something, so I'll join." And and since, for example, we had Cboe, Cboe, they make, I don't know, 2 to 4 billion selling data. They own now, so arguably Pyth competes against them. Um but overall, now we managed to onboard them and they see Pyth as a new way to monetize their data. And at Apex, we had about 135 publishers. Um but overall, you don't need that much. This is where we've landed. You just need the best and and uh build small.

Um so so far, I've mostly mentioned or talked about uh the Pyth price feeds, which pretty much fits under the Pyth Pro. So, Pyth Pro is your Spotify. Every month, it gets better. New and more data publisher, new and more price feeds, more assets covered. Uh for example, right now or this month, we're launching pretty much the top 50 or 100 uh stocks for most of Asian countries. Uh so, this is very much the bread and butter of Pyth. Create our own data, have the OIP, redistribute it.

Most recently, we wanted to further improve the convenience of the product. And where we want to be is I want your company to rely on a single data provider, Pyth. The thing is, we cannot create all the data in the world. Some data is very private or it's impossible to reconstruct. And so, we introduced the marketplace. Marketplace, you can think of it as a third-party redistributor platform, but it comes from the same API that you use all the Pyth products. So, you can consume, let's say, the US 100 uh equity price feed from Pyth, but you also want Nasdaq level two data,

so all the order book data, you can consume it. So, very much the idea was further improving the product so that you just need us. And the most recent focus is 24/7 markets. We brand it as the Pyth indices, but the whole idea is to use our and leverage our knowledge and all the data we create to blend TradFi market with on-chain markets. And especially if you've seen and traded on Hyperliquid, that's now whether you trade US indices, commodities, everything is 24/7.

And how can you access or visualize all of this? The Pyth terminal. So, after if you have some time, go on pyth.com, but pretty much you can access a TradingView-like website where you access and can review all the data we have. And nowadays, as we go also more and more outside of the pure crypto oracle stuff, this is a full self-service um application. It also enables me to work less because now you can just go, create your account, pay, and I don't have to convince you about buying a $10,000 package.

Um so, Pyth Pro was launched end of last year um and is run by Duolab, the second entity uh appointed by the Pyth DAO to run this off-chain data business. Um and overall, since the launch, uh Duolab has managed to add 1 million in ARR per month. So, aiming for like 12 million end of year, but there's a good chance that within our first 18 months we'll be sitting at 20 million ARR, mostly thanks to our newly introduced 24/7 indices, where I guess we replay the playbook of of Stratify, cuz whenever you create something very great, very new, that people value, you can actually sell it for a bit more.

Um so, the the the product um and the business grow very nicely, so it's been very rewarding. And like some big names you might have seen, but Polymarket Kalshi Tradewyz are in various degrees using the Pyth price feeds to settle their markets and their derivatives. >> For 45 years, financial data has been fragmented, expensive, and stuck in the past. Until now. Pyth Pro. One platform for equities, crypto, FX, commodities. Every asset class you need, one platform, one fee, every market.

Pyth Pro. Better market data by design. >> We do try to make market data a bit sexier than usual. And don't worry, you'll get two more videos, so you don't have to listen to me too much. But as I mentioned before, ton of growth, it's been five six years in crypto, it can be a long time, but very much we are very happy where we sit today and from a very crypto only on-chain price feeds helping a few dozen Solana applications, we now have Coinbase, like publicly listed companies relying on Pyth data for very uh nice and complex products.

Um quickly mention but here a couple names on the marketplace. The marketplace actually kick-started with the Department of Commerce a couple years ago where the US government wanted to have GDP data sent on chain. Um, and from there we wanted to iterate and so we have names like [snorts] Tradeweb, Juergen X, SGX, EDI, the number one market a corporate action uh data provider in the US and world providing that data through Pith. And I guess a couple more videos, but very much Pith nowadays we want to have this 24/7. This is where I guess where crypto or DeFi on chain finance have been

pushing TradFi and it's great. It's to provide 24/7 access to financial products. We coined them Pith indices, so let's hope that the future of finance will be powered by this. The sad part is you will not get holidays anymore, no weekends. Oh. Next one the video. Um, the indices I guess we have about 20 those days. Uh, it comes from commodities, uh, single name US equities, metals, FX. For example, yesterday I think Kraken launched uh their silver perpetual futures with the Pith indices.

Um, and we have DYDX had their Pith oil futures using our indices. So it's been it takes some time, but over and over we'll see traditional assets markets being 24/7 available mostly thanks to these great companies and and Pith price feeds. Um, and yeah, this is pretty much how I mentioned earlier. Why do we want to build indices? Is companies that you may not know or may know, but have no idea how much they make. S&P over a billion in profit selling indices. MSCI almost I mean, almost a billion, too.

So, hopefully pEOS will go from 20 million to a billion pretty soon, but this will see. Also, overall, we started as a blockchain oracle 5 years ago. Very much and as you can see with the ads, I mean, the marketing team is having fun, but we

go more and more into the traditional uh finance world, fintech, etc. And um yeah. I don't know if you have time to scan the QR code. Um but hopefully, the whatever trade you do later today or next week, uh go check the docs, but there's a good chance it will be pEOS.data behind it. Thank you very much. >> [music]