Sei Launches First Layer 1 Blockchain Optimized for DeFi09.01.2022
Sei, the first layer 1 blockchain optimized for DeFi, announced a $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. The new capital will be used to support the network as it approaches mainnet launch and further accelerate the growth of over 20 dApps already building in the Sei ecosystem.
Sei is thrilled to announce a $5 million funding round led by @MulticoinCap.
We've partnered with some of the most respected founders and institutions in the world to drive forward the same mission: build the best layer 1 for financial applications https://t.co/p0Yjd629Yt
— Sei ♒️ (@SeiNetwork) August 31, 2022
Over the past three years, there has been a Cambrian explosion in decentralized finance as new apps enable fundamental parts of the modern financial system to move onto the blockchain. These new DeFi apps serve to collapse legacy cost structures and expand financial access globally, yet the infrastructure to support these rapidly scaling financial apps has been insufficient, resulting in malicious exploits, network halts, and subpar user experiences. Sei addresses these problems by providing the first layer 1 blockchain specifically optimized for DeFi applications above all else.
Jay Jog, Cofounder of Sei Labs, said, “This round is a major step forward for Sei and the rapidly growing DeFi landscape. We’ve partnered with some of the most revered financial institutions in the world to drive forward the same mission: build the best layer 1 for financial applications.”
Most layer 1’s fall into a barbell distribution: two extremes with general-purpose chains on one end (e.g., Ethereum, Solana) and app-specific chains on the other (e.g., dYdX, Osmosis). Sei unlocks an entirely new design space between the two—not general-purpose nor app-specific, but DeFi-specific, which enables Sei to create an environment custom-built for DeFi applications. Sei features a built-in order matching engine, frontrunning protection, and the fastest finality of any chain (600 ms) currently in market. The combination of these optimizations make it possible for new types of financial products to emerge — everything ranging from live sports betting to complex options and futures.
“By exploring the new design space in between app-chains and general purpose Layer 1’s, Sei has carefully selected for a unique set of tradeoffs that make its Layer 1 an optimal environment for DeFi applications,” said Tushar Jain, Managing Partner, Multicoin Capital. “They’re unlocking new possibilities with built-in orderbook infrastructure, frontrunning prevention, and major speed improvements. Sei is already seeing a lot of interest from DeFi apps looking to build on top of them.”
Jason Choi, Co-Founder of Tangent, added, “The optimization that Sei has built into its core layer 1 makes it a clear destination for DeFi apps. They have addressed some of the major issues that teams come across on other ecosystems and we’re already starting to see apps move over. We look forward to building together with the Sei community.”
One of the key application types on Sei is orderbook-based exchanges. Any application can leverage Sei’s built-in order matching engine to instantly spin up and customize an orderbook for spot, derivatives, options, sports betting and more. The fastest finality and native frontrunning protection on Sei also make it compelling for large-scale orderbook exchanges.
“Sei has made advancements in speed, scalability, and security that address some of the major drawbacks of current general-purpose chains. We’re confident that they can be a real challenger in the battle for Layer 1,” said Tom Shaughnessy, Co-Founder of Delphi Digital.
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