Success Stories
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dYdX
How dYdX Powers Always-On Derivatives with Pyth Indices
dYdX, a leading decentralized perpetual futures protocol, leverages Pyth Indices to provide continuous, institutional-grade pricing for its 24/7 markets. This integration allows dYdX to bridge the gap between traditional asset trading hours and the "always-on" nature of DeFi.
DEX
Derivatives
RWAs
Challenge
While traditional financial markets operate on fixed schedules (e.g., closing on weekends and holidays), decentralized finance (DeFi) never sleeps. For a perpetual exchange like dYdX, listing traditional assets like commodities or equities presents a major hurdle: price discovery halts when legacy venues close.
Historically, to keep these markets open 24/7, exchanges had to either:
Price assets off their own internal orderbooks, leading to potential manipulation or isolation.
Build custom, internal logic to estimate prices during "dark" hours, which lacks independent verification.
Solution
dYdX has integrated Pyth Indices to power its continuous trading products with reliable, multi-source reference data. By leveraging Pyth's unique model of sourcing data directly from over 120 institutional publishers, including global exchanges and market makers, dYdX can access real-time price discovery even when traditional venues are closed.
A key implementation includes:
24/7 Oil Index: dYdX is a launch partner for the Pyth 24/7 Oil Index, enabling the platform to offer perpetual contracts on oil that remain active and accurately priced through weekends and holidays.
Impact
Continuous Market Access: Traders on dYdX can manage positions and trade traditional assets like oil 24/7/365, without being tethered to NYMEX or other legacy exchange hours.
Independent Price Integrity: By using an external, multi-source index rather than an internal orderbook, dYdX ensures a transparent "mark price" for liquidations and funding rates, reducing platform-specific risk.
Institutional-Grade Resilience: The indices aggregate data from both onchain and offchain venues, ensuring that even during global volatility spikes, the price reflects the true market mid-rate.
