Solana-Based Data Network Pyth Says Bug Dropped Bitcoin Price 90% to $ 5,402 on DeFi Developer Stream | Currency News | Financial and business news

[ad_1]

STR / NurPhoto via Getty Images

A bug has caused bitcoin to dip 90% on the Solana-based Pyth network, which provides pricing data to DeFi developers. Pyth, who gets market data from CoinShares, FTX and other exchanges, briefly showed bitcoin at $ 5,402 on Monday. “Several Solana programs based on the Pyth awards have been affected by this incident,” the network said. Sign up for our daily newsletter, 10 things before the opening bell here.

Real-time market data provider Pyth Network said on Wednesday that a bug caused an error that caused its feed to DeFi developers to display a significantly incorrect price for bitcoin, impacting many projects. managed by Solana.

The network, connected to some of the biggest names in crypto and financials, recorded a roughly 90% drop for bitcoin to $ 5,402 on Monday. Other platforms showed the token trading around $ 43,000, down 8%.

Pyth, which was launched on the solana blockchain, provides pricing data for smart contracts from DeFi developers based on market activity data from exchanges and professional traders. Its data sources include Sam-Bankman Fried’s FTX, CoinShares, Jane Street, Jump Trading Group, and Virtu Financial.

In a Medium article explaining what went wrong, Pyth said the bitcoin pricing incident was due to a combination of two factors: two data providers posting a near zero price for the token and the network aggregation logic tool giving too much weight to these contributions. .

Data providers have encountered issues with handling decimals, Pyth said.

“Several Solana programs based on the Pyth awards have been affected by this incident,” he said in the post.

“The impact was exacerbated by some programs relying on aggregate price feed without using confidence (metric), which allowed for sell-offs even though the published price was highly uncertain.”

A project built on solana, called Bonfida, tweeted on Monday that the drop in prices “had caused a series of liquidation events in the BTC-PERP market of the Audaces protocol (unfortunately working as expected)”. Audaces is a liquidation engine and the perpetual futures platform of Bonfida.

Leading developers are making changes to reduce the chances of incorrect prices being generated by software errors, and they are improving monitoring tools, Pyth said.

The price of Bitcoin returned to normal on Wednesday Pyth, last posting a level of $ 42,322. Digital assets have lost ground this week, driven by market concerns over the fallout from the Evergrande debt crisis.

The error on Pyth’s decentralized system caused a strong reaction on Twitter, with some wondering how Pyth still works.

Twenty trading companies, exchanges and market makers have partnered with the company as data providers, according to Pyth’s website. He added another well-known name to his list on Tuesday, when he announced a partnership with digital asset merchant bank Galaxy Digital to deliver data to its DeFi merchants.

Read more: Trader who warned of bitcoin bull market highs in 2017 and 2021 shares 4 altcoins he’s bullish on in the long run – but explains why the Evergrande crisis is pulling him away from crypto for the moment

[ad_2]