A Turning Point for Crypto Market Data
Coinbase International Exchange has partnered with Pyth Network to integrate Pyth Lazer, an oracle solution providing real-time market data. This collaboration marks a turning point in the industry, highlighting the growing importance of decentralized solutions for centralized institutions.
With Pyth Lazer, Coinbase will benefit from ultra-fast price feeds with updates every 1 millisecond, offering unparalleled responsiveness for crypto trading. The goal is clear: to improve order execution quality and minimize inefficiencies that persist in the crypto market, especially during periods of high volatility.
Why Coinbase Chooses Pyth Network?
Coinbase has always been a major player in centralized crypto, but the platform now recognizes the value of advanced on-chain solutions. The integration of Pyth Lazer aligns with this logic:
- Real-time market data: Pyth Lazer offers updated prices with a frequency of 1 ms, a crucial advantage for high-frequency trading strategies.
- Flexibility and customization: Coinbase can adjust the update frequency between 1 ms, 50 ms, and 200 ms, according to traders’ needs.
- Access to advanced indicators: The offering includes not only prices but also market depth information, such as bid-ask spreads, to enhance order execution quality.
By integrating Pyth Lazer technology, we are improving speed and price accuracy on our platform. This collaboration reflects our commitment to delivering an unparalleled trading experience.
Marc Zeitouni, CEO of Coinbase International Exchange
Pyth Lazer: A New Approach to Oracles
Pyth Lazer represents a significant evolution of blockchain oracles. Unlike traditional solutions, often limited by latency of several seconds, Pyth Lazer aims to minimize time gaps between centralized markets and decentralized protocols.
However, this speed comes at a cost: Pyth Lazer is a permissioned solution, deviating from the fully decentralized model of other Pyth Network solutions. Coinbase, as a CEX, finds an advantage in accessing near-instantaneous price feeds.
A Strong Signal for the Future of On-Chain Trading
Coinbase’s adoption of Pyth Lazer sends a strong signal to the market. It demonstrates that even the largest centralized platforms recognize the value of decentralized project infrastructures in improving their performance.
With the rise of high-speed blockchains and the emergence of decentralized derivatives markets, the need for ultra-fast oracles becomes inevitable. Pyth Lazer positions itself as an intermediate solution, combining the performance of centralized systems with optimized on-chain infrastructure.
Coinbase is taking a step towards convergence between CeFi and DeFi, relying on technologies capable of delivering execution close to traditional market standards. The question now is whether this trend will become widespread and if other players will follow suit by integrating similar solutions to enhance their competitiveness.
