When talking about blockchains, there are 2 main buckets: general purpose chains and app chains.
However, @SeiNetwork is the first layer 1 designed for trading.
What does this mean? Let's dive into it🧵
[part 1]
However, @SeiNetwork is the first layer 1 designed for trading.
What does this mean? Let's dive into it🧵
[part 1]
DeFi-optimized L1 means making fundamental changes to the base layer that will allow DeFi apps to thrive:
♒️ built-in order matching engine
♒️ price oracle
♒️ sub-second finality
♒️ parallelization of orders
♒️ single block order execution
and more!
♒️ built-in order matching engine
♒️ price oracle
♒️ sub-second finality
♒️ parallelization of orders
♒️ single block order execution
and more!
Why do we need these changes at the base layer?
Let's take a look at @solana, a general-purpose L1 whose thesis is that orderbook exchanges will eventually take over AMMs & @ProjectSerum, the orderbook layer on Solana for @mangomarkets, @ZetaMarkets, @JupiterExchange, and more.
Let's take a look at @solana, a general-purpose L1 whose thesis is that orderbook exchanges will eventually take over AMMs & @ProjectSerum, the orderbook layer on Solana for @mangomarkets, @ZetaMarkets, @JupiterExchange, and more.
Where is the problem?
Serum (and the apps built on top) are always fighting it out for resources with other programs. Gaming and minting #NFTs are two unconnected activities that might cause the chain to get congested and, as we have witnessed several times, to halt.
Serum (and the apps built on top) are always fighting it out for resources with other programs. Gaming and minting #NFTs are two unconnected activities that might cause the chain to get congested and, as we have witnessed several times, to halt.
Sei offers a solution.
Sei strips out all the non-DeFi activities from its chain.
A mental framework is that Sei is if Serum was its own L1; making specific tradeoffs so that the base layer is optimized for #DeFi and giving these apps an unfair advantage vs. non-DeFi
ones.
Sei strips out all the non-DeFi activities from its chain.
A mental framework is that Sei is if Serum was its own L1; making specific tradeoffs so that the base layer is optimized for #DeFi and giving these apps an unfair advantage vs. non-DeFi
ones.
The main tradeoff: Sei will not be as permissionless as Solana.
Applications that want to build on top need to be whitelisted by
governance in order to create a more optimized environment for a particular niche.
Applications that want to build on top need to be whitelisted by
governance in order to create a more optimized environment for a particular niche.
Sei is an app chain, but an on-chain order book creates a
composable architecture.
This allows the @CosmWasm apps on Sei to have synchronous composability with each other and share liquidity through the
native order matching engine.
composable architecture.
This allows the @CosmWasm apps on Sei to have synchronous composability with each other and share liquidity through the
native order matching engine.
As an #IBC-enabled #Cosmos chain, there’s async
composability for everything else.
To add to that, Sei achieves some of its optimizations with ABCI++, the upcoming upgrade to Cosmos’ #ABCI that allows every step of consensus to be programmable.
composability for everything else.
To add to that, Sei achieves some of its optimizations with ABCI++, the upcoming upgrade to Cosmos’ #ABCI that allows every step of consensus to be programmable.
Huge shoutout to the @Delphi_Digital team for writing in-depth research about Sei!
Read the full report here
Read the full report here
https://twitter.com/Delphi_Digital/status/1575538338651869184?s=20&t=4YUAas7rHwHKPoMz-QDaZQ
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