Equilibria introduces Pythia v0.1.0

Overview

The team is happy to announce the public testnet version 1 of Pythia Equilibria’s oracle is now on testnet. Harrison has been working hard on making the testnet stable and functional. The main goals for this testnet is to find issues with consensus, the P2P network, and ensuring stability.

Pythia v0.1.0

Our contract v1 “closed” system uses a simple .json framework to allow for easy setup. Price feed contracts can have thresholds and cross-currency calculations such as turning XEQ-BTC to XEQ-USD using a BTC-USD contract reference. More variations and customizations will be implemented slowly. Currently, any user can set up any price feed with any API they can provide.

Roadmap for v0.2.0

Pythia v0.2.0 focuses on fixing issues on v0.1.0 and adding new features.

Contract creations + requests will now require burnt XEQ. One request burns $3.20 in XEQ.

Node operators will now be rewarded based on contributions to the network. Each contribution is weighted differently. All node operators are given 1 point for helping validate the Equilibria chain. If a node operator part takes in Pythia, they get contribution points on fulfilling requests. In the scenario below there were 79 contract requests in this block, meaning 2528 XEQ has been collected. The fees are given on a basis of 40%(burnt), 40%(operators), and 20%(team). Taking the operator node amount, each node gets its fair share based on their contribution points.

Point system

Governance contracts are a way for chains to vote on governance issues such as changing fees, protocol proposals, and more. Each vote takes 1 XEQ to be burnt from the supply.

The monero forks adapter will allow for monero forks to connect to the Pythia network. The adapter will go live on our XEQ testnet with v0.2.0.

Currently, Pythia nodes check signatures + sign transactions through json-rpc. This will be changed to native signing and checking directly in GoLang.

The current database Pythia uses is PostgreSQL. This will be changed to a Golang Key/Value database to improve TX throughput and performance.

  • Allow for more customization like stating the minimum amount of nodes needed for Trusted Answer.
  • Price Feeds — The defined period for which data will be gathered i.e. Every nth block for y blocks. Paid in batches.

The staking requirement will move from a diminishing XEQ curve to a USD value requirement. The standard node cost will be $5,000 in XEQ. The base amount for a node will be 80,000 XEQ which will not change until the XEQ price goes above ~$0.06. After the price goes above $0.06, the amount will be $5,000 / XEQ price. The XEQ price will be provided by Pythia. These changes will be live with the XEQ v8.1.0 testnet and Pythia v0.2.0 testnet.

Tokenomic Changes from Pythia

Pythia will help keep Equilibria’s supply stable while maintaining a high incentive for further decentralization — there is a small fee attached to each Pythia transaction split 40/40/20. Oracle Nodes will receive 40% of the fees paid from Pythia. As the usage of Pythia increases, the ROI of running an Oracle Node will also increase. With a higher ROI comes a larger incentive to run an Oracle Node resulting in a more secure network. Another 40% of the fee is burnt to help stabilize the supply by offsetting the emission rate. The remaining 20% of the fee will go to the team and fund the project over the long-term.

Examples:

(3,839,770.8 XEQ is emitted each year)

If 1 Project using @pythia_oracle made 1 request per hour for a year, $28,000 worth of XEQ would be generated in fees (~500K XEQ would be burnt if the XEQ/USD price stayed at 5 cents).

$11,200 would be burnt

$11,200 would be given to Oracle Nodes

$5,600 would go to the project fund.

If 1 Projects using @pythia_oracle made 1 request every 10 minutes for a year, $168,000 worth of XEQ would be generated in fees (~3M XEQ would be burnt if the XEQ/USD price stayed at 5 cents).

$67,200 would be burnt

$67,200 would be given to Oracle Nodes

$33,600 would go to the project fund.

If 10 Projects using @pythia_oracle made 1 request per hour for a year, $280,000 worth of XEQ would be generated in fees (~5M XEQ would be burnt if the XEQ/USD price stayed at 5 cents).

$112,000 would be burnt

$112,000 would be given to Oracle Nodes

$56,000 would go to the project fund.

Another change that will happen after Pythia testnet v2 is the staking requirement. After this update, the collateral required to stake will be based on the XEQ/USD exchange rate (XEQ/USD price must be greater than 6 cents before this change comes into effect). As Equilibria grows over time, Oracle Nodes can expect a higher XEQ ROI percentage due to a decreasing XEQ staking requirement.

Roadmap for v0.3.0 & Beyond

The team has looked into wrapped tokens due to strong community interest and support. After doing some extensive research, we believe a wrapped XEQ token will help increase liquidity and can be used to facilitate request payments for the Pythia oracle bridges to Polkadot and Ethereum. Initially, swapping from XEQ to wXEQ/pXEQ will be a one-way transaction. After the initial release, we will begin developing a way to swap coins in either direction.

The swapping protocol will have three phases starting with wXEQ:

Phase 1 will be centralized where the team acts as a proxy from XEQ chain -> ETH contract. All mints/burns will be auditable.

PHASE 1 is operational on XEQ Testnet v0.1.0 & ETH Ropsten Testnet

Phase 2 will be partially decentralized through Pythia. Pythia will act as a voting mechanism to create burn proofs. Then the team’s node will facilitate the mint on the ETH chain once the transaction is confirmed by multiple nodes.

Phase 3 will be fully decentralized through Pythia and a secondary ETH contract. The secondary ETH contract will take the votes from Phase 2. If 2/3rd of the Pythia nodes confirm the burn tx, a mint event will be triggered.

Phase 4 will allow for wXEQ->XEQ swaps. Users will burn coins and then Pythia nodes will create a mint request on the XEQ chain.

The Ethereum chain adapter will allow for Ethereum contracts to connect to the Pythia network. The adapter will go live after wXEQ is integrated. Requests will be paid in wXEQ and node participants will receive wXEQ.

The Polkadot chain adapter will allow for parachains to connect to the Pythia network. The adapter will go live after pXEQ.

Other Updates

Upcoming Updates:

  • New White Paper
  • Begin inbound marketing
  • Website improvements
  • Desktop Wallet Improvements

Join our discord or Telegram and check out the #pythia-testnet channel.

Check out our Trello where you can see what the team is working on.

Our Twitter posts the most important news

Private Decentralized Oracles