Sei Network and Ecosystem Overview

• What is Sei?
• Developers and investors
• How does Sei work?
• Sei Token and Sei Airdrop
• Seis Ecosystem
• summary

What is Sei?

Sei is an L1 chain built with one purpose: to be the chain for new decentralized exchanges (DEXs) on DeFi, NFTs and games. It is built with the Cosmos SDK, allowing it to be industry-specific and transaction-focused. However, unlike the application-specific blockchains (such as dYdX or Osmosis ) of the Cosmos ecosystem that build blockchains for just one application, Sei is a blockchain for multiple applications within a single domain – DEX application. It aims to achieve its ambitious goals with improvements in three key areas: performance, security, and interoperability.

Sei promises a lightning-fast transaction completion time of 600 milliseconds. This will put Sei on par with or in competition with centralized exchanges (CEX) in terms of order fulfillment and better than existing DEXs on the market. The blockchain's fast throughput is also critical to its native order matching engine model that is intended to replace the traditional AMM transaction model.

Compared to other general purpose chains like Bitcoin, Ethereum, and Solana, here's what Sei claims to offer:

On the security front, Sei relies on the Tendermint Core consensus mechanism that powers the Cosmos ecosystem. By using regular mass auctions, Sei promises to stop MEVs and run ahead. This allows applications on Sei to use its validator and ensures a smooth trading experience for customers.

Sei is also collaborating with several protocols to maximize interoperability. For example, it announced a partnership with Axelar, a cross-chain infrastructure provider that will improve connectivity, communication with other protocols, and capital transfers to and from other blockchains.

Developers and investors

Sei Network was founded by Jeffrey Feng and Jayendra Jog and boasts more experienced team members with work experience from companies like Airbnb and Goldman Sachs.

It raised US$5 million in a funding round led by Multicoin Capital with participation from Coinbase Ventures, Delphi Digital, Hudson River Trading, GSR, Hypersphere, Flow Traders, Kronos Research and the founders of Anchorage, Frax, Yield Guild Games and Tangent.

Furthermore, Sei recently announced a US$50 million liquidity fund and ecosystem to introduce liquidity and incentivize the building of Dapps, with participation from venture capital firms. leading market makers and exchanges like Multicoin Capital, Delphi Digital, Hudson River Trading, GSR, Flow Traders, MEXC , Kronos, Hypersphere and many more.

How does Sei work?

Before diving into the technology behind Sei, we need to clarify what problems blockchain solves:

• General-purpose chains like Ethereum are not optimized for specific use cases like decentralized exchanges. This inhibits their growth.
• You can't build an order book exchange on a multi-chain because it's too congested.
• All-in-one L1s are too slow and cannot deliver the trading experience that centralized exchanges offer.

Sei argues that DeFi falls into two camps: either protocols built on top of general-purpose chains like Ethereum, or protocols with private application chains like Osmosis (OSMO). Sei aims at the intersection of the two: an industry-specific chain that maximizes decentralized exchanges.

Technically, this is possible thanks to a number of innovations.

First, Sei provides pre-run prevention by executing orders with regular bulk auctions. One of the main pain points of DEXs is that orders are not processed on-chain or overload most blockchains if they are processed on-chain or processed on-chain on a fast, sacrificial blockchain. decentralization or security (The Impossible Trilogy of the blockchain). Instead of executing commands one by one, Sei gathers commands at the end of the block and executes them all at once, thus preventing front-running.

Sei also uses price oracles to provide reliable data feeds and minimize external dependencies. Unlike other DEXs, it leverages single-block order execution. Instead of handling placing and executing an order in two trades, Sei does so in one. Moreover, it combines orders at multiple levels, allowing market makers and professional traders to minimize gas costs.

All of this allows Sei to enter the market at its “decentralized NASDAQ” value. Most decentralized exchanges solve the problems mentioned earlier by implementing an automated market maker (AMM) for users to trade. However, with CEX still holding over 90% of the trading volume, that solution has clearly failed to impress the market. Sei promises that its technology can create an order book model, which it calls a Centralized Limit Order Book.

In short, the goal is to enable high-frequency transactions at off-chain speeds while maintaining on-chain security.

Sei Token and Sei Airdrop

The Sei protocol is still in the “Seinami” incentivized testnet phase and has yet to announce information about Sei tokens or airdrops to users soon.

Seis Ecosystem

Although still in the early stages of development, Sei already boasts a number of partners in its ecosystem. This is the fully public Sei ecosystem at the moment.

Vortex

Vortex is a decentralized derivatives exchange for the IBC chain. Similar to Sei, it aims to provide DeFi services such as borrowing and lending as well as cross escrow with user experience on centralized exchanges.

Pharaoh Protocol

Pharaoh Protocol allows users to create synthetic assets in a decentralized way. Users can trade assets in the real world without owning or trading them, just by trading asset prices provided by oracle.

Axelar Network

Axelar Network is a secure cross-chain communication protocol built on PoS. It will allow bridging, messaging and execution on different IBC chains.

Synthr

SYNTHR is a trustless, multi-chain aggregated asset protocol. Users can create and trade online derivatives of many financial assets, such as cryptocurrencies, stocks, currencies, bonds, and commodities, using smart contracts.

KYVE

KYVE enables data providers to standardize, validate, and permanently store blockchain data streams. It creates backups of existing data and leverages data archiving solutions like Arweave to provide scalable and immutable data backup solutions.

White Whale

White Whale is a cross-chain arbitrage protocol that establishes cross-chain liquidity pools to facilitate arbitrage transactions. Its liquidity pool acts as automated market makers and allows bots to trade arbitrage with the ecosystem's DEXs.

UXD

UXD is a fully collateralized decentralized stablecoin backed by derivatives to provide a stable, capital-efficient and decentralized stablecoin. Initially deployed on Solana, this is the first Cosmos native stablecoin integration.

Nitro

Nitro is a Solana virtual machine chain that allows developers to launch Solana Dapp on IBC blockchains.

DeFund

DeFund is an application-specific blockchain built to provide fully autonomous, multi-chain exchange-traded funds built using the Cosmos SDK.

Leap Wallet

Leap Wallet is a non-custodial wallet for the IBC chain with built-in staking, NFT and DeFi functionality that users can conveniently use as a browser extension.

Keplr

Keplr is a popular non-custodial open source wallet for IBC blockchains that allows users to store coins and interact with different chains in the IBC ecosystem.

Multichain

Multichain is an infrastructure solution built for cross-chain interactions and is claimed to be “the ultimate router for web 3.0”. Formerly known as Anyswap, it supports interoperability across 72 chains and 3000 tokens. Multichain announced its integration with Sei on October 11, 2022.

Coin98

Coin98 is a cryptocurrency “Super App” — a decentralized application that offers DeFi features such as wallets, token swaps, staking, etc. Coin98 has announced integration with Sei Network, allowing users to Creating a Sei wallet and joining the test network is encouraged.

Kargo

Kargo is building “base layer 1.5 infrastructure for prediction markets” on Sei Network. Layer 1.5 is the base layer with additional features for dApps with specific use cases – in this case anticipating worldwide markets, especially hard-to-reach local markets. than.

Frontier

Frontier is a non-custodial DeFi wallet that supports over 40 chains and hardware wallets from Trezor and Ledger. Users can trade, store, buy and invest in cryptocurrencies and NFTs, and integration with Sei Network will connect users from other leading ecosystems such as Ethereum, Polygon, Arbitrum, BNB Chains, etc.

Kado

Kado is a fiat on/off-ramp infrastructure provider. It claims that “their on/off-ramp-as-a-service can be integrated in less than 10 minutes.” This will allow Sei dApps users to use ACH, wire transfers, and credit cards from Visa and Mastercard to buy and sell crypto in more than 150 countries.

Satori

Satori is a decentralized financial derivatives platform that combines the design of off-chain and on-chain payments, combining the security and transparency of a decentralized exchange with speed and usability. of a centralized exchange

summary

And above is a summary of Sei Network as well as the current projects in the ecosystem of this new network. Let's wait for new things that Sei Network will bring to crypto in the near future.

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