The blockchain landscape is crowded, with countless layer-1 networks competing for developer attention and user adoption. While many aim for broad utility, a new wave of specialized blockchains is emerging — designed with laser focus on specific use cases. One such project leading this charge is Sei, a trading-optimized layer-1 blockchain that has recently announced a major milestone: the launch of a $50 million ecosystem and liquidity fund.
Backed by co-founders Jeff Feng and Jay Jog, Sei aims to redefine how decentralized exchanges (DEXs) and DeFi applications operate by building infrastructure tailored specifically for high-performance trading.
👉 Discover how Sei’s new fund is accelerating innovation in decentralized trading.
A Layer-1 Built for Speed and Scalability in Trading
Unlike general-purpose blockchains such as Ethereum or Solana, Sei was architected from the ground up with one core mission: optimize on-chain trading performance. This specialization allows Sei to make technical trade-offs that other networks cannot — or will not — adopt.
“Ecosystem-wise, if you think about all of crypto, especially on-chain applications, there’s only a few apps that have gotten actual product market fit,” said Jeff Feng. “The few that have are DeFi and stablecoins. We know for sure exchanges are here to stay.”
This insight drives Sei’s entire design philosophy. While most blockchains host exchange protocols as smart contracts layered on top of their base infrastructure, Sei integrates an order-matching engine directly into the layer-1 protocol. This architectural innovation dramatically reduces latency and increases throughput — critical factors for traders who demand speed and reliability.
Jay Jog explained: “Most exchanges have smart contracts on top of layer-1 blockchains, so if you’re trying to improve the performance of the exchange, you can’t really do anything about the layer-1. In our case, we added an order matching engine into the layer-1 itself, which substantially improves performance and experience for exchanges.”
This native support for trading logic means developers can build DEXs that rival centralized platforms in speed while maintaining full decentralization.
Fueling Growth with a $50M Ecosystem Fund
To accelerate adoption and attract top-tier builders, Sei has launched a $50 million ecosystem and liquidity fund. The capital will be used to support promising teams building DeFi applications, trading tools, and infrastructure projects on the network.
Importantly, Sei’s ecosystem growth so far has been organic. According to Feng, over 50 development teams have already migrated to Sei from ecosystems like Solana, NEAR, Polkadot, and even the now-defunct Terra.
“These are teams that have already raised venture funding and launched their applications,” Feng noted, “but felt that their current layer-1 ecosystems lacked what allowed them to really scale and provide the best user experience — which is why they came to us. All of these teams came over without any incentives.”
Now, with dedicated funding, Sei aims to formalize its support for developers through grants, liquidity provisioning, and go-to-market assistance. The goal isn’t just to grow the number of projects — it’s to cultivate high-impact applications that leverage Sei’s unique capabilities.
👉 See how developers are using Sei’s high-speed architecture to build the future of DeFi.
Why Now? The Case for Building in Crypto Today
Despite market volatility and regulatory uncertainty, Feng believes we’re in one of the most opportune moments to build in crypto.
“It’s a generational time to build,” he said. “If you look back to 2017 or 2018, it was really risky — there weren’t real applications or a lot of capital. It was a much bigger swing in the dark.”
Today, however, the landscape has evolved. Adoption is growing, institutional interest remains strong, and capital is more accessible than ever before. Yet, Feng argues, it's still early enough for new projects to make a meaningful impact.
“Crypto is super de-risked from an adoption and capital perspective,” he said, “yet it’s still early enough for new startups to come in and make a dent. Even during this time, with so much uncertainty — this is the clearest time to start building interesting new applications.”
This sentiment underscores Sei’s long-term vision: not just to support trading today, but to lay the foundation for next-generation financial infrastructure.
Core Keywords Driving Sei’s Vision
Sei’s strategy revolves around several key themes that resonate with both developers and users:
- Layer-1 blockchain
- Decentralized finance (DeFi)
- Crypto trading
- Order matching engine
- Ecosystem fund
- Blockchain scalability
- Developer incentives
- High-performance blockchain
These keywords reflect not only Sei’s technological differentiators but also its alignment with current market demands — particularly the need for faster, more efficient DeFi solutions.
By embedding trading-specific functionality at the protocol level, Sei enables developers to create applications that were previously impossible or impractical on general-purpose chains.
Frequently Asked Questions (FAQ)
Q: What makes Sei different from other layer-1 blockchains?
A: Sei is purpose-built for trading. It includes a native order-matching engine within its layer-1 architecture, enabling ultra-fast transaction finality and higher throughput compared to blockchains where exchanges run as smart contracts.
Q: How will the $50 million fund be used?
A: The fund will support ecosystem growth through developer grants, liquidity incentives, and strategic partnerships. Priority will be given to teams building DeFi applications, trading protocols, and tools that enhance user experience on Sei.
Q: Are only trading apps suitable for Sei?
A: While Sei is optimized for trading, its high-speed infrastructure benefits any application requiring low latency and high throughput — including gaming, prediction markets, and real-time financial services.
Q: Which networks are teams migrating from?
A: Early adopters include projects from Solana, NEAR, Polkadot, and former Terra ecosystem developers seeking better scalability and performance.
Q: Has Sei offered incentives for teams to join?
A: Initially, no. Over 50 teams joined organically due to performance advantages. The new fund marks the beginning of structured incentive programs.
Q: Is Sei compatible with Ethereum or EVM?
A: Sei supports both Cosmos SDK and Ethereum Virtual Machine (EVM) compatibility, allowing developers from multiple ecosystems to build seamlessly.
Building the Future of Decentralized Trading
Long-term, Sei’s ambition extends beyond just powering faster DEXs. The team envisions creating a foundational layer for advanced financial applications — where speed, reliability, and developer flexibility converge.
“At the end of the day,” Feng said, “we want to build the right infrastructure that gives developers the advantage.”
With a clear use-case focus, proven technical innovation, and now significant financial backing via its $50M fund, Sei is positioning itself as a go-to platform for builders aiming to push the boundaries of what’s possible in decentralized finance.
👉 Explore how Sei’s ecosystem fund is shaping the next era of blockchain innovation.
As the crypto industry matures, specialized blockchains like Sei may prove essential in solving the scalability and usability challenges that have long held back mass adoption. For developers looking to build high-performance trading applications — or any real-time financial service — Sei offers a compelling alternative to one-size-fits-all layer-1 solutions.