[PASSED] OP-PIP-15: Implement Pyth Update Fee on opBNB

[KemarTiti]

Abstract

Following the interest expressed by KiloEx and the positive response from the community to have the Pyth oracle deployed on opBNB, this proposal is to implement a fee per price feed update of 0.000186 BNB (or about $0.09 at 27/05/24 price) in the Pyth smart contract.

Find the community discussion here: Deploy Pyth’s pull oracle to opBNB - #21 by Sloth1890

Rationale

This deployment to opBNB enables all DeFi protocols, current and future, to use Pyth Data. This integration is also the first opportunity for the DAO to implement fees on a new deployment.

From the DAO perspective, KiloEx has constantly gathered over 3,000 daily active users on opBNB since the beginning of 2024 — KiloEx Trade

Even when assuming a single trade per user or 3,000 price update requests, daily revenue would be about 0.55 BNB ($350 / day at 27/05/24 price).

Description

This proposal upgrades the existing Pyth oracle contract on opBNB to increase the fees (Pyth Update Fee) collected for every feed updated from 0.000000000000000001 BNB to 0.000186 BNB.

Implementation Plan

Proposal id: HFScDYf98dMaHP9tzy1abT7GMqAUVD8YfVcgx32yvQZY

Verify the implementation following the steps below:

1. The New Fee Value multiplied by 10 power the New Fee Expo equals to the agreed fee above

[ed_pyth]

@KemarTiti

this proposal is to implement a fee per price feed update of 0.000186 BNB (or about $0.09 at 27/05/24 price) in the Pyth smart contract.

$0.09! That’s the largest fee structure proposed for any Pyth-supported chain!

I invite everyone to imagine if the fee were $0.09 not just for opBNB, but also all the other 60+ blockchains powered by Pyth…

See also: https://docs.pyth.network/price-feeds/how-pyth-works/fees

[gnarleyquinn]

It seems quite high right?

It adds up quick, so would projects actually be willing to pay that kind of money for the data?

[bats4]

hello gnarleyquinn!
about the fees, i have read about it in the discussion thread.
quoting some of them here,

@0xkeyrock.sol

Considering both the revenue perspective and user perspective, we find the proposed fee of 0.000186 BNB (approximately $0.09) to be reasonable and appropriate. While we support this fee tier, we still welcome other opinions and are open to considering alternative suggestions presented by the DAO.

@shutsuwei88

Given @KemarTiti’s suggested ‘price per update’ fee of ~$0.09 and combined with the existing base fee, the total execution fee from a user’s perspective will be ~$0.1. I think it is still economically sound and competitive compared to other leading pool-based perp dexes.

or visit the thread for the full posts

Deploy Pyth’s pull oracle to opBNB

Abstract KiloEx, a decentralized exchange (DEX) on opBNB, is experiencing significant growth in its user base and trading volume. To ensure continued high-quality execution and security for its users, KiloEx requires access to reliable and trustworthy price data. Integrating Pyth oracles directly on opBNB would provide this essential data source, not only benefiting KiloEx but also other DeFi applications within the opBNB ecosystem. Rationale Similar to deployments on BNB Chain and Manta, int…

if you already did, then im sorry!

[gnarleyquinn]

I think I would just prefer fee structure’s in crypto to be so incredibly negligible that they are not a factor when transacting at all.

I used ETH for the first time in months yesterday and gas was $20 - absolutely insane