Multi-chain oracle project Switchboard announces it is stopping operations, with full support terminated on September 25. All protocols that rely on it must migrate to Pyth or RedStone within a few days, otherwise the price feeds will be cut off directly.
The reason is actually quite ironic: AI has driven the cost of running a self-built oracle down to rock bottom—so the project team just needs to directly connect to the data source. Switchboard itself also mentioned a model where Hyperliquid works directly with SP, indicating that the value of third-party oracle middlemen is being eroded by technological evolution.
The Solana ecosystem is hit the hardest. Switchboard’s deployment footprint on Solana isn’t small. In the short term, the migration wave may cause liquidity fluctuations for some DeFi protocols, and related protocols on ARB and ENA are also worth watching. In the long run, it’s good news for LINK and PYTH, as market concentration increases with competitors exiting.
But what I’m really concerned about isn’t who will take over—it's the exact line Switchboard said about AI, which hides a deeper trend that nobody has explained clearly yet.
The reason is actually quite ironic: AI has driven the cost of running a self-built oracle down to rock bottom—so the project team just needs to directly connect to the data source. Switchboard itself also mentioned a model where Hyperliquid works directly with SP, indicating that the value of third-party oracle middlemen is being eroded by technological evolution.
The Solana ecosystem is hit the hardest. Switchboard’s deployment footprint on Solana isn’t small. In the short term, the migration wave may cause liquidity fluctuations for some DeFi protocols, and related protocols on ARB and ENA are also worth watching. In the long run, it’s good news for LINK and PYTH, as market concentration increases with competitors exiting.
But what I’m really concerned about isn’t who will take over—it's the exact line Switchboard said about AI, which hides a deeper trend that nobody has explained clearly yet.