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2 | 2 | title: "Tutorial: Use the Pyth oracle for DeFi applications on Etherlink" |
3 | 3 | --- |
4 | 4 |
|
5 | | -- TODO introduce the tutorial |
| 5 | +Etherlink is great for DeFi applications because of its low latency, fast confirmation times, and low fees. |
| 6 | +This tutorial shows you how to set up a simple application that gets market information from [Pyth](https://www.pyth.network/) and makes trading decisions based on those prices. |
6 | 7 |
|
7 | | -- TODO mention that it is an adaptation of the Pyth tutorial for Etherlink here: |
8 | | -https://docs.pyth.network/price-feeds/create-your-first-pyth-app/evm/part-1 |
| 8 | +Pyth is a network of oracles, which provide information about currency prices and other market data to smart contracts. |
| 9 | +As described in [Oracles](https://docs.tezos.com/smart-contracts/oracles) on docs.tezos.com, smart contracts cannot call external APIs, so they depend on oracles for information about the world outside the blockchain. |
| 10 | +Smart contracts must call oracles in a specific way and pay fees to use them. |
| 11 | + |
| 12 | +This tutorial is an adaptation of this Pyth tutorial for Etherlink and its sandbox development environment: |
| 13 | +https://docs.pyth.network/price-feeds/create-your-first-pyth-app/evm/part-1 |
| 14 | + |
| 15 | +## Learning objectives |
| 16 | + |
| 17 | +In this tutorial, you learn how to: |
| 18 | + |
| 19 | +- Start and use the Etherlink sandbox environment |
| 20 | +- Call the Pyth DeFi oracle |
| 21 | +- Use the Foundry toolkit to build, test, and deploy a smart contract to Etherlink |
| 22 | +- Call an oracle from a smart contract |
| 23 | +- Call the smart contract from an off-chain application |
| 24 | +- Make basic buy and sell decisions based on the information from the oracle |
| 25 | + |
| 26 | +## Tutorial application |
| 27 | + |
| 28 | +The application that you create in this tutorial has an on-chain component in the form of a smart contract deployed to Etherlink. |
| 29 | +It also has an off-chain component in the form of a Node.JS application that calls the smart contract. |
| 30 | + |
| 31 | +For the completed application, see: TODO link |
| 32 | + |
| 33 | +## Tutorial sections |
| 34 | + |
| 35 | +- [Part 1: Setting up a development environment](/tutorials/oracles/environment) |
| 36 | +- [Part 2: Getting information from the Pyth oracle](/tutorials/oracles/get_data) |
| 37 | +- [Part 3: Using price data to buy and sell tokens](/tutorials/oracles/tokens) |
| 38 | +- [Part 4: Automating pricing decisions](/tutorials/oracles/application) |
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