{"id":49955,"date":"2021-09-22T17:00:13","date_gmt":"2021-09-22T14:00:13","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=49955"},"modified":"2025-09-02T15:26:58","modified_gmt":"2025-09-02T12:26:58","slug":"on-chain-oracle-pyth-on-solana-records-90-bitcoin-price-plunge","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/on-chain-oracle-pyth-on-solana-records-90-bitcoin-price-plunge\/","title":{"rendered":"On-chain oracle Pyth on Solana records 90% Bitcoin price plunge"},"content":{"rendered":"<p>On Monday, 20 September, a Solana-based price data provider used by some Wall Street participants showed an anomalous drop in Bitcoin to $5,402.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Between 12:21 and 12:23 UTC the Pyth BTCUSD aggregate price was below $40,000 \u2013 the lowest price reported was $5,402 with a confidence interval of $21,623 (4x the asset reported price) for a single slot \u2013 which was off-market relative to the BTC price available on other markets<\/p>\n<p>\u2014 Pyth (@PythNetwork) <a href=\"https:\/\/twitter.com\/PythNetwork\/status\/1439960003402686469?ref_src=twsrc%5Etfw\">September 20, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The Pyth platform team, whose clients include financial giants Jump Trading Group, DRW and the FTX crypto exchange, said on Twitter:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abBetween 12:21 and 12:23 UTC [15:21 and 15:23 MSK] in the BTC\/USD pair the aggregated price fell below $40 000 \u2014 the lower reported price was $5,402 with a confidence interval of $21 623 (four times the asset-reported price)\u00bb.<\/p>\n<\/blockquote>\n<p>The outage affected only the BTC\/USD pair and did not affect other Bitcoin markets, according to Pyth.<\/p>\n<p>In the course of the investigation, engineers of the platform found that the cause was data provided by two projects on the Solana blockchain. Because of a mismatch in the data format, the platform&#8217;s software treated the price they quoted as near zero. The Pyth algorithm also gave the data a high weight when calculating aggregated quotes.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/VS1PmkuvLimXSbdWwjwU02EzjJH6krBUWZ9lTbaQ6Mp7shHbJcY1x3myi6_EMMrViryBrhCrOrM26Vb4OwjJ3pRQspZlWk91jznOziWOer3c9iURTpNUJhnP3MGiXA5iO0c3ubP_=s0\" alt=\"On-chain oracle Pyth on Solana records 90% Bitcoin price plunge\"\/><figcaption class=\"wp-element-caption\">BTC\/USD price and its confidence interval during the outage. Data: Pyth.<\/figcaption><\/figure>\n<p>According to the Pyth team, the outage affected several Solana protocols. Engineers mainly linked this to their use of prices without accounting for the confidence interval.<\/p>\n<p>For example, the Bonfida project reported that the price anomaly triggered a series of liquidations of Bitcoin perpetual options on its Audaces platform.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Today around UTC 13:22, the <a href=\"https:\/\/twitter.com\/PythNetwork?ref_src=twsrc%5Etfw\">@PythNetwork<\/a> oracle\u2019s BTC\/USD price feed suffered a flash crash with the price of <a href=\"https:\/\/twitter.com\/search?q=%24BTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$BTC<\/a> going as low as $8k. This caused a series of liquidation events on the Audaces protocol BTC-PERP market (unfortunately working as intended).<\/p>\n<p>\u2014 Bonfida (@bonfida) <a href=\"https:\/\/twitter.com\/bonfida\/status\/1439939941992222722?ref_src=twsrc%5Etfw\">September 20, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Developers at Pyth said they would implement a number of changes to the software to prevent similar incidents in the future:<\/p>\n<ul class=\"wp-block-list\">\n<li>introduce testing during integration of protocols to prevent data-format mismatches;<\/li>\n<li>improve monitoring tools so data providers can respond more quickly to anomalous prices on the mainnet;<\/li>\n<li>adjust the logic for weighting the supplied data;<\/li>\n<li>develop documentation and code samples for integrated Pyth protocols emphasising the joint use of price and the confidence interval as a more accurate market signal.<\/li>\n<\/ul>\n<p>Earlier, the incident followed <a href=\"https:\/\/u1f987.com\/en\/news\/on-solana-on-chain-activity-stalls-after-a-technical-outage\">a broad outage on the Solana blockchain<\/a> \u2014 new blocks did not appear for about 17 hours. Validators <a href=\"https:\/\/u1f987.com\/en\/news\/solana-network-restarts-after-major-outage\">restarted the network<\/a> on September 15.<\/p>\n<p>According to the project team, <a href=\"https:\/\/u1f987.com\/en\/news\/solana-developers-identify-cause-of-major-outage\">the outage was caused by a spam attack<\/a> by bots during the <span data-descr=\"Initial DEX Offering, the initial coin offering on a decentralized exchange\" class=\"old_tooltip\">IDO<\/span> token sale of the Grape Protocol on the Raydium platform.<\/p>\n<p>Follow ForkLog news on <a href=\"https:\/\/vk.com\/forklogcom\" target=\"_blank\" rel=\"nofollow noopener\">VK<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Monday, 20 September, a Solana-based price data provider used by some Wall Street players showed an anomalous drop in Bitcoin to $5,402.<\/p>\n","protected":false},"author":1,"featured_media":26216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1389,1301,1159],"class_list":["post-49955","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-blockchain-oracles","tag-blockchain-vulnerabilities","tag-solana-sol"],"aioseo_notices":[],"amp_enabled":true,"views":"56","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/49955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=49955"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/49955\/revisions"}],"predecessor-version":[{"id":49956,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/49955\/revisions\/49956"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/26216"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=49955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=49955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=49955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}