In today's 3V Insights, our research collective presents the SEI Network.
Sei Network is the first order book-specific L1 blockchain, custom-built for DeFi applications. Features a built-in order-matching engine, frontrunning protection, and the fastest finality of any chain (400-600 ms).
Executive summary
New investment opportunity - SEI Labs - Seed round - $5 Million
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Homepage: https://www.seinetwork.io/, Whitepaper, https://github.com/sei-protocol https://github.com/sei-protocol/sei-chain.
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Explorer: Test-net https://sei.explorers.guru/; https://testnet-explorer.brocha.in/sei/ Product: Sei Network is the first orderbook-specific L1 blockchain, custom-built for DeFi applications. Features a built-in order-matching engine, frontrunning protection, and the fastest finality of any chain (600 ms).
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Language: Go
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Protocol Consensus: ⚛️ Tendermint +
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Stats: Twitter: 143K, Discord: 215k , Telegram: 10k; Since launch in July → 58 Active Validators (2000 Test-net validators); more than 25k Test-net users.
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Investors: $5 million 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.
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Competitors: Injective, Serum, DyDx v4, Maverick Protocol.
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Roadmap: Testing Dev-net. Target Main-net Q1 2023
Pros:
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DeFi-specific environment build on Cosmos SDK ⚛️
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Cross-chain integration with deep liquidity (IBC and Solana through Nitro L2)
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Plug-and-play into the Sei order matching engine and access pooled liquidity from other apps. As seen by the number of DeFi apps building on top (UDX, Alpha Ventures, Cypher, Vortex, Sushi Swap, etc)
Cons:
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The first mover, Injective, has great traction and stats, this could lead to a high barrier to entry into the IBC ecosystem, despite SEI tech advancements.
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No Tokenomics info out yet.
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Users experienced an unstable Test-net due to the high traffic, specifically with the NFT mint (Dusk).
Product Use Case
Target: DEX Exchanges, Market Makers, RWA, TradFi.
Thanks to its built-in central limit orderbook (CLOB) module, decentralized apps can build on top of it, and other Cosmos-based blockchains can leverage Sei’s CLOB as a shared liquidity hub and create markets for any asset. Sei will act as an infrastructure and liquidity center for the Cosmos ecosystem’s next generation of DeFi products.
Ecosystem
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Collab announced - @Nitro_Labs will deploy its scaling solution on Sei serving as a portal for the Cosmos and Solana Ecosystems. Nitro allows developers to deploy existing Solana smart contracts on top of Sei and users can seamlessly access these apps with Solana wallets. Incubated by Sei Labs investors, Nitro provides a platform for Solana developers looking to expand to the IBC markets.
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50 Million Ecosystem and liquidity fund to support new decentralized finance (DeFi) applications on its platform.
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Sei secured an additional $20 million in ecosystem funding from MEXC.
Features
Latency & Throughput
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Overloading Tendermint: Sei is the fastest chain to finality (450ms, as per Test-net)
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Defi-specific parallelization: massively increases throughput and order processing
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Optimistic block processing: heavily decreases block latency
Mev Protection
- Frequent batch auctioning: FBA can aggregate every single market order at the end of the block, then execute all orders at the same uniform clearing price, rather than executing each order one by one (as would happen on Ethereum or Solana).
Developer and User Experience
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Native price oracles: are built into the chain, meaning that all validators are required to propose their prices when committing to a block. Blocks are created only if all validators agree on a common price. If validators miss some voting windows or provide prices diverging too much from the median, they get slashed (punished).
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Single block order execution: on Serum, apps need 1 transaction to place an order (adding it to a queue) and then another transaction (in another block) to “turn the crank” for order execution. Sei collapses that into 1 block for faster order execution.
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Multiple levels of order bundling: to minimize gas costs, market makers and pro traders can update their orders by submitting only 1 transaction (i.e. all orders for a BTC perpetual will be combined into one smart contract call for that particular market).
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Multi-Token Gas: gas can get paid with multiple token options. Initially, the trading fees will be set to zero, leaving space for new apps to set their own trading fees.
Major Tech innovations
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Native Order Matching
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Twin-Turbo Consensus
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Market-based parallelization
Unique Value proposition:
Sei combines the advantages of general-purpose Layer 1's with those of app-specific chains.
General purpose advantages:
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Atomic composability - all apps are built on 1 blockchain so can easily work with each other
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Social coordination - Single core community with a single sharing point
App-specific advantages:
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Customizability - if you're building a chain around a single app, you can customize things.
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Native, multi-chain interoperability - the power of IBC.
Team
CORE TEAM
Jayendra Jog - Co-founder. Prev. Software Engineer at Robinhood
**Jeff Feng **- Co-founder. Prev. Venture investor (Crypto Hedge Fund), IB Goldman Sachs.
Dan Edlebeck - Head of Ecosystem. Prev. 4yrs Founder deedle connects - Blockchain Marketing agency.
SEI Team pitch at Cosmoverse.
How to Partecipate?
Test-Net - Useful links
All Seinami missions:🐙All Seinami Testnet Missions
Guides:
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New challenge - Stake it till you make it.
Rewards
The Seinami incentivized testnet will be open to the public on June 1st, 2022, and will run for a duration of 2 months. After the event period is over token rewards will be allocated according to points accrued (1% allocation)
Token rewards will be distributed to all winners following the mainnet launch. There will be a 1 year lockup period.
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📌 Analysis by Macr0Mark. Disclaimer: This analysis is based on personal opinion only. This is not intended as investment advice. Do your own research. All company data is owned by the respective owners.