DeFi Research Report: Sei Network
@SeiNetwork is starting to make moves.
Not a day goes by where I don't hear something positive about what they're building from a trusted and reliable source. From its roots in high-frequency trading to its forthcoming Sei Giga launch, Sei seems to be all about pushing boundaries -- especially when it comes to their tech.
As most of you know, I work in DeFi, so whenever a promising chain starts to make waves like these, I explore the viability of deploying DeFi assets to the ecosystem. In turn, I've spent the last three weeks crashing coursing on what they have cooking, where things are headed, and how their DeFi environment is evolving.
If you're here just for my DeFi Report, scroll to the end. For those of you who want to get into the weeds a bit more, let’s break down what I've learned -- tech, innovation, community, roadmap, and what’s next.
Buckle up.
The Tech: Speed, Scale, and EVM
Sei Network started as a Layer-1 optimized for decentralized trading, launching in August 2023 with a focus on speed and scalability. Its journey from Sei V1 to Sei Giga is a straight line from fast to faster (and maybe fastest).
Core Technology
Integrated Blockchain - Sei is an integrated (monolithic) blockchain, handling execution, settlement, consensus, and data availability in one network, built on modified forks of Cosmos SDK and Tendermint Core. This differs from most modular architectures (like Ethereum), making Sei technically a direct competitor in the L1 space.
Transaction Speed - Sei consistently finalizes blocks at 390ms, the fastest in the industry, with over 45 TPS on average. However, Sei Giga will crank this up to 5 gigagas per second (~200,000 TPS), achieving sub-400ms finality, you can
EVM Compatibility - Sei’s EVM support ensures developer familiarity, but its parallelized EVM (introduced in V2) allows for asynchronous transaction processing, for a bit more on that, head over
Fundamentally, all of the above are critical benchmarks needed for DeFi and high-throughput apps to thrive on-chain. So far so good.
Key Innovations
Sei Twin Turbo Consensus (V1 to V2) - Sei’s initial speed came from Twin Turbo, optimizing Tendermint’s 6-second block time to sub-400ms. It introduced intelligent block propagation and optimistic block processing, reducing latency.
Parallel EVM (V2) - Sei V2’s parallelized EVM lets transactions execute simultaneously, not sequentially, boosting throughput significantly. This particular innovation was a precursor to Sei Giga, which is when things really escalated -- you'll see that in the next section.
Sei Giga (Future Launch) - The game-changer and what made me start really paying attention. Sei Giga’s multi-proposer architecture and Autobahn consensus enable 5 gigagas/sec. Async State Commitments decouple consensus from execution, allowing validators to agree on transaction order without waiting for state updates. This is why Sei Giga will hit 200K+ TPS, 50x faster than Sei V2’s 100 MGAS/s.
Sei Giga's Big Three Tentpoles
1. Multi-Proposer
What it is --> Traditional EVM chains typically use a single block proposer, one validator is chosen to build and broadcast a block, while others validate it. This sequential process creates a natural bottleneck: if the proposer is slow, or the block is large, the entire network stalls.
What Sei Giga will do differently --> Sei Giga introduces a multi-proposer model, where multiple validators are allowed to propose blocks concurrently. This means the network is no longer gated by a single proposer’s performance. Instead, proposals happen in parallel, which dramatically increases throughput and resilience to latency or individual validator issues.
Why it matters --> By distributing the workload, block production becomes more efficient and fault-tolerant. This is a foundational improvement that removes a key bottleneck seen in other EVM-based chains.
2. Autobahn Consensus
What it is --> Consensus in blockchains is often likened to traffic control: who gets to move when, how is congestion sorted out, how many cars can get through a light before it changes, etc. Most chains operate like a single-lane road: only one block can be finalized at a time, and every vehicle (transaction) waits behind the one in front.
What Sei Giga introduces --> The aptly named Autobahn Consensus is Sei Giga’s custom protocol that enables parallel block production and finalization. Think of it as a high-speed expressway with multiple lanes, where different streams of transactions can move simultaneously across separate proposers -- all while staying safely ordered and verifiable.
Why it matters --> This parallelism enables sub-400ms finality, meaning transactions are confirmed faster than most web2 payment systems. It also improves composability: different parts of the network can operate independently yet still reach agreement quickly.
3. Async State Commitments
What it is --> In many blockchains, consensus and execution are tightly coupled, the network must first agree on the order of transactions, then execute them, then update the global state (balances, smart contract logic, etc.). This makes the execution path a performance choke point.
What Sei Giga does instead --> By decoupling these steps, Sei Giga introduces asynchronous state commitments, allowing the network to finalize the transaction order first (consensus) and defer execution to a separate stage.
Why it matters --> This means that state updates no longer block consensus, allowing the network to keep moving even if execution is slow or complex. The benefit is a smoother, more scalable system that can support higher TPS without compromising determinism or reliability.
Why All This Matters
"I'm really bullish on Sei because it has incredible potential to completely shake up DeFi, gaming, and trading. The ecosystem and amount of users is growing rapidly by the day. In Q1 2025, Sei’s Total Value Locked (TVL) skyrocketed by 1300% to over $350 million." - @erikaleetv
@erikaleetv is absolutely right. Sei’s tech stack is tailor-made for DeFi, gaming, and NFTs. Its EVM compatibility means developers can port existing dapps, but with 50x the speed. For users, sub-400ms finality means no more waiting -- perfect for high-frequency trading or real-time gaming.
To me, the speed and efficiency that Sei brings to the table screams DeFi. But, Sei's innovation isn’t just about speed and making a DeFi environment just for me (ha) -- it’s about solving some of the space's biggest problems.
Real-World Assets (RWA) - Sei’s infrastructure supports large data volumes quickly, ideal for tokenizing assets like real estate. While not directly mentioned as a specific objective by Sei, I think Sei’s scalability could position it for RWA projects like Avalanche's (@avax)$240B initiative that I covered earlier this month.
DeFi Optimization - This is the lense I am always looking through. Sei’s parallel EVM and high TPS make it a DeFi powerhouse. The potential for trading platforms is big and we're starting to see that -- with $SEI’s TVL surging to $540M.
Sei commits to carbon neutrality, making it attractive to environmentally conscious developers and enterprises, aligning with global sustainability trends. While this isn't something that is necessarily a must in order for me to enter an ecosystem, I've always been a fan of this approach ever since @Algorand showed a chain could be carbon-neutral.
Sei’s IBC compatibility (pre-Giga) connects it to the @Cosmos ecosystem and I've always been a big fan of Cosmos tech. While Sei Giga shifts to an EVM-only model, this history shows Sei’s adaptability and ability to recognize gud tech and utilize it to its fullest.
The DeFi Report
First things first, the TVL on-chain is up and to the right -- exactly what we like to see on @defillama. As of this writing, we're in the $500MM-$600MM range in terms of TVL, which signals a new, but healthy ecosystem with enough liquidity to do things, but not enough to be a dominant lure for many DeFi degens -- for now.
To me, that sounds like opportunity.
On the volume side, we see better-than-expected daily activity in the $20MM-$30MM range.
My expectation for a healthy DeFi ecosystem floats around $2MM-$4MM in volume for every $10MM in TVL, and this ratio comes in around $4MM over $10MM. Not bad at all and we will likely see strong yield across the trusted DEXs in the ecosystem.
Trusted DEXs
While Sailor currently holds the most TVL for a DEX on SEI at $78MM, the community seems to be backing DragonSwap (@dragonswap_dex) with more enthusiasm -- plus, Sailor is region locked for U.S. users, so that's never a good long-term restriction I hope they sort out (I'll use a VPN for now).
Both DEXs are @Raydium-inspired protocols and come fully loaded with concentrated liquidity pools (CLMMs), which are a must for any DeFi degen.
I don't love that DragonSwap doesn't have any public-facing audits in their docs and -- although audits don't exactly guarantee perfect security -- I'd like to see some level of confirmation that their code has been rigorously tested before I deploy assets in-size to the protocol.
However, the Sei Network’s V2 upgrade, which DragonSwap relies on, was audited by OtterSec (@osec_io) and Zellic (@zellic_io) and it looks like their contracts are derived from Uniswap V3's codebase -- so that's nice to see.
That being said, the community so far is trusting the protocol and we're seeing some promising fees:
I live-and-die by NATIVETOKEN-USDC pools, so seeing at least a 1-for-1 24-hour volume to liquidity ratio is crucial and I've been happy to see this consistently on DragonSwap (screenshot above) over the last few weeks.
Sidenote, @Circle did deploy native USDC on Sei, which is another big plus in my opinion.
Trusted Lender
The frontrunner by a mile is Yei Finance (@yeifinance), a non-custodial money market protocol exclusive to Sei Network.
Yei is an @aave fork, so most forks tend to be relatively battle-tested and I'm happy to see that Yei has been audited by Zellic and PeckShield (@peckshield) -- that's a major trust signal.
I truly believe no DeFi ecosystem can thrive without Aave, so the next best thing is a fork with foundation support -- Sei Foundation powers Yei Finance. So, a couple of green flags there.
That being said, I've seen a few rumors that Yei suffered a $2.4MM exploit in its WBTC pool due to a flash loan attack in 2024, however, I cannot find much to support that this actually happened. Regardless, if true, the exploit occurred before the Zellic/PeckShield audits, which happened just recently 2025, which tells me that Yei addressed the vulnerability post-exploit, if there was one.
Trusted Bridge
Stargate (@StargateFinance) services the Sei ecosystem, so we're covered. Shortest section ever.
Where I Landed
On the strategy side, I'll be deploying a small position to Yei, borrowing USDC and farming SEI in the SEI-USDC pools on both Sailor and DragonSwap, then stacking that SEI on Yei. Once some more audits come through, I'll ramp up the deployment size as I gain confidence in the ecosystem's security - but I'd like to start stacking a SEI bag for more exposure now.
I like where things are headed for Sei.
The pieces are all there to build a thriving DeFi ecosystem and with Sei Giga on the way, this is just the beginning. Plainly put, with 5 gigagas/sec, sub-400ms finality, and a thriving community, Sei is poised to eat some lunches. I'll be watching closely for more dapp migrations, RWA experiments, and AI integrations.
The road ahead is fast -- and Sei’s ready to race.