CO-PIP-6: Release Pyth Lazer on Solana Mainnet

Proposals
1

Abstract

In response to the DeFi community’s demand for real-time data 1. to enable higher frequency trading and 2. to remove the risk of front-running that plages the user experience in DeFi, Douro Labs is proposing the release of a new system parallel to Pythnet that delivers data at 1ms frequency. Both existing Pyth consumers and new entrants have expressed interest in such service.

Douro Labs suggests to call the additional offering as “Pyth Lazer”

Rationale

  • Higher frequency data allows for trade to execute using the most-up-to-date price information and reduces the risk of latency arbitrage to a minimum
  • DeFi aspiring to beat execution quality on centralized venues requires data that is accurate at the very time when a user is taking an action
  • Lower gas cost for the interactions with oracle contracts reduces cost of updating data on-chain and thus lowering the cost of execution
  • Pyth DAO will benefit from helping DeFi improve the UX of its users, upgrade the quality of execution and reduce the adverse effects of front or back running

Description

“Pyth Lazer” consists of on-chain smart contracts and a off-chain system for the generation of price feeds. DeFi protocols consume data aggregated off-chain and can choose the frequency at which to consume such data. Every single data produced is cryptographically verifiable on-chain.

  • Douro Labs proposes to deploy the first instance of Pyth Lazer contracts on Solana mainnet, with further deployments delegated to the Pythian Council, based on demand
  • The selection of teams to provide a reliable infrastructure for the off-chain system is delegated to the Pythian Council. Douro Labs proposes its services to run the first instance of such system
  • Access to the off-chain system is permissioned. Douro Labs suggests to manage the permissioning process for each of the interested DeFi protocols until the process is decentralized
  • Douro Labs also proposes to the Pyth DAO to set the price for oracle verification on-chain to 1 of the smallest denomination of the blockchain’s native token in order to prioritize adoption
  • Douro Labs also proposes to manage the inventories of price feeds and publishers until such processes are implemented in a similar way to how Pythnet currently operates, with delegation to the Price Feed Council

Implementation Plan

  1. DAO Constitution changes to add Pyth Lazer: [LINK]

  2. Technical deployment:

    • Deploy Lazer’s verifier contract on Solana mainnet with the Pythian council as the upgrade authority and admin of the contract and set the treasury to Gx4MBPb1vqZLJajZmsKLg8fGw9ErhoKsR8LeKcCKFyak, with the fee of 1 lamport per price update
    • Set Douro Labs as the trusted service provider of Lazer via an OP-PIP proposal once the Lazer service is live
    • Conduct final tests with mainnet service to ensure on-chain verification works as expected
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Exciting stuff. Looking forward to it

Who is Douro lab from Pyth’s context, is it the development arm?

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Douro Labs is one of the development teams dedicated to advancing the Pyth Network.

Douro Labs’s core expertise is in high performance computing, low latency programming and distributed consensus computations.

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