Research Summary
The report provides an in-depth analysis of Sei, a Layer 1 blockchain designed for trading digital assets across various sectors. It discusses Sei’s unique features, its use case, adoption, revenue, tokenomics, treasury, governance, team, investors, competitors, risks, and audits.
Key Takeaways
Sei’s Unique Features and Performance
- Fastest Blockchain: Sei claims to be the fastest blockchain in the industry, with 380 ms transaction finality. It was built using the Cosmos SDK and is designed to solve the exchange trilemma of decentralization, scalability, and capital efficiency.
- Specialized Layer 1 for Trading: Sei provides a specialized Layer 1 for trading, offering features like fastest chain to finality, twin-turbo consensus, market-based parallelization, native matching engine, and frontrunning protection.
Sei’s Tokenomics and Revenue
- Revenue Generation: The $SEI token captures revenue in multiple ways, including transaction fees on the Sei blockchain, tips to validators for prioritized transactions, and trading fees on exchanges built on the Sei blockchain.
- Token Supply: The total supply of SEI is capped at 10 billion tokens, with a circulating supply of 2.425 billion and a market cap of $1.9 billion.
Sei’s Governance and Security
- Proof of Stake Blockchain: Sei operates as a decentralized “Proof of Stake” blockchain, secured by over 39 active validators. Token holders can participate in governance by submitting on-chain transactions.
- Security Audit: Sei was audited by CertiK, which identified and resolved one critical risk and acknowledged four major risks. CertiK gave Sei a security score of 90.39, placing it in the top 10% of protocols surveyed.
Sei’s Founding Team and Investors
- Founding Team: Sei was founded in 2022 by Jay Jog (ex Robinhood) and Jeff Feng (ex Goldman). Over the years, it has raised over $85 million from various funding rounds.
- Prominent Investors: Sei’s prominent investors include Multicoin Capital, Coinbase ventures, Jump Crypto, and Delphi Digital.
Actionable Insights
- Monitor Sei’s Ecosystem Growth: Given Sei’s relatively low Total Value Locked (TVL) compared to its market cap, it would be beneficial to monitor the growth of its ecosystem, as significant inflows into TVL are anticipated.
- Understand Sei’s Governance Process: As Sei’s formal governance process has not yet been fully detailed, it would be useful to understand how this process will be developed and implemented.
- Research Sei’s Upcoming Developments: Sei has several upcoming catalysts, including Sei v2- Parallelized EVM Blockchain, a $120 million SEI ecosystem fund, Sei Launchpad Program, and Tokenized RWAs. These developments could significantly impact Sei’s performance and adoption.
