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chore(pricefeed) Add docs for cross rate #729

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1 change: 1 addition & 0 deletions pages/price-feeds/_meta.json
Original file line number Diff line number Diff line change
Expand Up @@ -26,6 +26,7 @@
"use-real-time-data": "Use Real-Time Price Data",
"fetch-price-updates": "Fetch Price Updates",
"schedule-price-updates": "Schedule Price Updates",
"combine-two-price-feeds": "Combine Two Price Feeds / Derive a Cross Rate",
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just pick one of these titles -- this is too long.

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imo "derive cross rate" is better than the other one

"migrate-an-app-to-pyth": "Migrate an App to Pyth",
"use-pyth-for-morpho": "Use Pyth for Morpho Markets",
"publish-data": "Publish Data",
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101 changes: 101 additions & 0 deletions pages/price-feeds/combine-two-price-feeds.mdx
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import { Callout } from "nextra/components";

# Combine Two Price Feeds / Derive a Cross Rate

This guide shows how to combine two price feeds to derive a cross rate. These are also known as "synthetic" price feeds.
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why is this called a synthetic feed? no need for new terminology here imo

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Alot of folks asked us if we support synthetic feeds. It helps us with SEO and docs internal search as well.

Cross rates or Synthetic Price feeds are useful for trading pairs that are not directly supported by Pyth.

<Callout type="info" emoji="ℹ️">
This guide is for developers who are building applications on **EVM
blockchains** using **solidity only**.
</Callout>

## Example

For example, if you want to trade the price of **`ETH/EUR{:jsx}`**, which is not directly supported by Pyth, you can combine the price of **`ETH/USD{:jsx}`** and **`EUR/USD{:jsx}`** to derive the price of **`ETH/EUR{:jsx}`**.

$$
\large{\text{ETH/EUR} = \text{ETH/USD} \div \text{EUR/USD}}
$$

## Derive a cross rate

Pyth provides [`deriveCrossRate`](https://github.com/pyth-network/pyth-crosschain/blob/main/target_chains/ethereum/sdk/solidity/PythUtils.sol#L77) function to combine two price feeds.
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Pyth here is imprecise. this should say

The Pyth Solidity SDK provides ...

This method is available in [Pyth solidity SDK](https://github.com/pyth-network/pyth-crosschain/tree/main/target_chains/ethereum/sdk/solidity).

This method takes the following parameters:

- `price1`: The first price feed value, representing a / b (e.g., ETH/USD). Must be a signed integer (int64).
- `expo1`: The exponent for price1, indicating the number of decimal places.
- `price2`: The second price feed value, representing c / b (e.g., EUR/USD).
- `expo2`: The exponent for price2.
- `targetExponent`: The desired exponent for the output cross rate (a / c). The result will be scaled to this exponent.

Returns:

- `crossRate`: The computed cross rate (a / c), scaled to targetExponent.

### ⚠️ Things to Keep in Mind
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imo this should go after the example


- The function reverts if either price is **negative**, or if any exponent is **less than -255**.
- The result is rounded down. If the result is smaller than 1 in the given `targetExponent{:jsx}`, it will return 0.
- Confidence intervals are not derived in this function. If needed, you have to derive them manually.
- Reverts with `PythErrors.ExponentOverflow{:jsx}` if `targetExponent + expo1 - expo2{:jsx}` is outside the range **[-58, 58]**.

## Example

```solidity copy
pragma solidity ^0.8.0;

import "@pythnetwork/pyth-sdk-solidity/IPyth.sol";
import "@pythnetwork/pyth-sdk-solidity/PythStructs.sol";
import "@pythnetwork/pyth-sdk-solidity/PythUtils.sol";

contract ExampleCrossRate {
IPyth public pyth;

constructor(address _pythContract) {
pyth = IPyth(_pythContract);
}

// priceUpdate should include both price feeds
function getEthPerEur(
bytes32 ethUsdId,
bytes32 eurUsdId,
bytes[] calldata priceUpdate
) external payable returns (int64 price, int32 expo) {
// Update both feeds
uint fee = pyth.getUpdateFee(priceUpdate);
pyth.updatePriceFeeds{ value: fee }(priceUpdate);

// Fetch prices
PythStructs.Price memory ethUsd = pyth.getPriceNoOlderThan(ethUsdId, 60);
PythStructs.Price memory eurUsd = pyth.getPriceNoOlderThan(eurUsdId, 60);

// Derive ETH/EUR = ETH/USD ÷ EUR/USD
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/ not +

int32 targetExpo = -8;
int64 ethPerEur = PythUtils.deriveCrossRate(
ethUsd.price,
ethUsd.expo,
eurUsd.price,
eurUsd.expo,
targetExpo
);

return (ethPerEur, targetExpo);
}
}

```

## Additional Resources

You may find these additional resources helpful.

### How to use real-time data in EVM contracts

The [How to use real-time data in EVM contracts](./use-real-time-data/evm) guide provides a step-by-step guide on how to use real-time data in EVM contracts.

### Price Feed IDs

The [Price Feed IDs](https://www.pyth.network/developers/price-feed-ids) page lists the price feed IDs for each asset supported by Pyth.
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