Osmosis Enhances Order Book Specific Layer 1 Network Sei

Cosmos DeFi protocol Osmosis has announced enhancements to its first orderbook-specific layer 1 blockchain, Sei Network, to optimize on-chain orderbook activity and transactions via a Twitter thread published on October 31.

Osmosis is a DEX protocol that utilizes smart contracts to price cryptocurrency assets in liquidity pools and precisely trade them between users.

The Sei Network enables decentralized applications to deploy their own central limit order book (CLOB) containing buy and sell matching that occurs both decentralized and on-chain. Since SeiNetwork is compatible with Inter-Blockchain Communication (IBC), all dapps built on Cosmos can take advantage of its IBC capabilities and enable new creative financial products ranging from live sports and betting to options and futures.

Compared to most L1 blockchains such as general-purpose Ethereum, Avalance, Solana, or application-specific Osmosis and DYDX, Sei Network differentiates itself as a use-case-specific and permissioned blockchain.

The permissionless nature of CLOB modules and Sei

This means that dapps can customize the network by including built-in CLOB modules, and the permission nature requires that proposals require review and approval before any application can be deployed. CLOBs allow dapps to benefit from fast execution and a shared liquidity model without requiring permission, allowing dapps to maximize compatibility and eliminate factors that affect the performance of the core protocol.

Twin Turbo Consensus

The announcement also made two enhancements to the Sei network: Smart Block Propagation and Optimism Block Handling.

Smart block propagation reduces transaction processing time by equipping validators with all relevant transaction hashes rather than waiting for hashes and blocks to be relayed to other validators. This optimizes by 40%.

Optimism block processing allows blocks to be processed at any given height, including pre-vote and pre-commit operations. This reduces latency and increases throughput by 33%.

Frequent batch auctions

Additionally, transactions are aggregated in batches at the end of each block, while processing and enforcing a uniform liquidation price. This enables users to extract maximum extractable value (MEV) while preventing front-running, which involves malicious actors buying assets and selling them at higher prices by intercepting users when they initiate transactions to buy assets.

Sei’s dapp community and supporters

Sei launched the $50 million Sei Ecosystem and Liquidity Fund to support teams in the Sei ecosystem and provide liquidity for applications launching on the network on September 28.

In a Twitter thread, Sei announced several dapps joining its ecosystem, including DEX derivatives exchange, Vortex protocol, synthetic protocol for price exposure, Pharaoh protocol, and cross-chain communication provider Axelar Network, among others.

Sei is also backed by venture capital firms, market makers, and exchanges, including Multicoin Capital, Delphi Digital, Hudson River Traders, MEXC, Kronos, Hypersphere.

Source of information: Compiled from CRYPTOSLATE by 0x information.The copyright belongs to the author and may not be reproduced without permission

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