Crypto-focused blockchain chain Sei has launched a $50 million ecosystem fund • TechCrunch

Crypto-focused blockchain chain Sei has launched a $50 million ecosystem fund • TechCrunch

While many Layer 1 blockchains are built for a very general purpose, other networks are designed around very specific use cases.

badThe company, a Layer 1 blockchain designed for trading, has launched a $50 million ecosystem and liquidity to support new Decentralized Finance (DeFi) applications on its platform, co-founders Jeff Feng and Jay Jog told TechCrunch exclusively.

“From an ecosystem perspective, if you think about all cryptocurrencies, especially on-chain applications, there are only a handful of applications that become suitable for the actual product market,” Feng said. “Everything else is so great, so early despite the ratings they have. Solana is really like a huge C-rated startup.”

With so many Layer 1 blockchains, a lot of the stuff they each do “is a ‘startup,’ it’s the home of hackers — things that aren’t scaling but are huge for their ecosystem,” Feng said. “The few applications that have become relevant to the product market are like DeFi and stablecoins. We definitely know that exchanges are here to stay.”

Feng said Sei’s core value proposition is focused on specializing in Layer 1 blockchain. “Now you can do things you can’t do in any other ecosystem because we’ve made tradeoffs that are not available in other L1s.”

Feng believes that all Layer 1 blockchains – with the exception of Ethereum – are operating as early stage startups. “For them, it’s focused on the end user, but for us it’s focused on the developer.”

Cryptocurrency exchanges bring some of the most — if not most — money into the space, yet the current tier one infrastructure hampers many exchanges, Gog said.

“Most exchanges have smart contracts above the first layer.” [blockchains]so if you’re trying to improve exchange performance, you can’t do anything about Layer 1,” said Goog. “In our case, we added a request matching engine to Layer 1 itself which greatly improves performance and experience with exchanges.”

So far, the Sei ecosystem has more than 50 teams, mainly coming from blockchains such as Solana, NEAR, Polkadot and the defunct Terra Feng shared.

“They are teams that have already raised project funding and launched their apps, but felt that the current Layer 1 ecosystems lacked what allowed them to really scale and provide the best user experience, which is why they came to us,” Feng said. . “All these teams came without any incentives.”

Feng pointed out that so far, Sei has not spent any money on granting the ecosystem. But the new fund will go towards growing its own ecosystem and incentivizing “good founders” to come in and build applications on its blockchain.

“It’s time to build a generation,” Feng said. “When you think about cryptocurrencies in terms of risk and reward. If you look at 2017 or 2018, it was really risky. There were no real applications or a lot of capital, it was a much bigger swing in the dark.”

But this time around, Feng believes the cryptocurrency is “significantly risk-free” from an adoption and capital perspective, yet it is still early enough for new ventures or startups in the space to have a real chance of making an impact. “Even during this time, with a lot of uncertainty – this is the clearest time to start creating new, interesting applications.”

In the long term, the trading-focused blockchain hopes to build a better infrastructure for exchanges and, as a result, to improve the DeFi infrastructure over time, Feng said.

“Ultimately, we want to build the right infrastructure that gives developers an edge.”

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