I am in support of this proposal. Here is a good thread around Sei v2 from one of the co-founders which touches on the major features of the blockchain:
https://twitter.com/jayendra_jog/status/1729865516175798536
Sei v2:
My summary is below:
- Optimistic parallelization: The chain will try to run all TXs in parallel and if there are conflicts (i.e. more than one TX touching the same state) the blockchain will run non-conflicting TXs in parallel and conflicting TXs sequentially. In general this means greater throughput and lower finality.
- SeiDB: As Sei is one of the fastest blockchains out there (i.e. fastest finality), this means more blocks being created and storage space growth as the state of the blockchain increases. SeiDB features a rearchitected storage stack to tackle state bloat.
- EVM compatibility: Every smart contract that has been written on Ethereum can be deployed on Sei v2 seamlessly with no changes. This means that there are no extra costs required due to rewriting smart contracts and auditing a new code base. More importantly, existing EVM tooling that developers are accustomed to using are compatible with Sei v2.
What does this means in terms of performance?
DeFi Landscape
On the DeFi side, the following are known DEXs that will be available for when Sei v2 is release.
Jelly Verse (Balancer Fork): [BIP-590] Jellyverse Friendly Fork Proposal - General Proposal - Balancer
Uniswap v3: Deploy Uniswap v3 on Sei - Proposal Discussion - Uniswap Governance
Dragon Swap (Uniswap v2/v3 Fork): https://dragonswap.app/
Yaka Finance (Fork of Thena swap which is a fork of Algebra): https://twitter.com/YakaFinance
Having multiple sources of liquidity is positive for Carbon as it uses all onchain liquidity sources in order to fill any limit/range orders that are created. This means that any trading strategies created on Carbon will have good order execution if liquidity exist onchain for those tokens. The Arb Fast Lane will take care of arbitraging these different liquidity sources and as a benefit to the Sei ecosystem, it will maintain price parity across all onchain liquidity venues. As the Arb Fast Lane is an open arbitrage framework, any participant on Sei can run it in order to earn a portion of arbitrage profits.
While having multiple sources of liquidity onchain is generally good, this is not a prerequisite for Carbon as it is an orderbook like protocol and price discovery can certainly occur in Carbon if it becomes the dominant liquidity source. While most users of Carbon utilize the protocol for its limit, range, and recurring strategies (AKA buy-low-sell-high strategies which are composed of two orders that are linked together such that the liquidity rotates from one order to the next when it is filled), Carbon is also capable of Constant product and Concentrated liquidity strategies as well.
These types of strategies are more efficient from a gas perspective on Carbon as:
- The protocol does not rely on price ticks for its architecture which ends up being expensive for swaps that need to cross price tick boundaries (see every other concentrated liquidity protocol out there)
- There are no price oracles for trading pairs on Carbon which means that after a swap occurs there is no need to update a price oracle for that pool
In addition, there is more flexibility on Carbon due to:
- No preset fee tiers as the strategy creator decides exactly what spread or fee they will charge
- Fees do not collect in a separate bucket but rather are auto compounded back into the strategy itself.
For these reasons, not only does Carbon end up being a better performance protocol than others but also provides better usability for traders.
Bridge Landscape
Sei will have layerzero support from day 1:
https://twitter.com/SeiNetwork/status/1772972037167849926
this means that onboarding onto Sei should be relatively easy and moving assets from Ethereum to Sei and vice versa should be seamless. What this also means is that bridging stablecoins should be possible and this is important as a lot of makers on Carbon create trading strategies with stablecoins as a denominating asset.
I suspect that more bridges such as Axelar and Wormhole will also be supported in the future in order to have multiple alternatives available for users.
Closing Thoughts
I think Carbon will benefit greatly from a blockchain like Sei v2 due to its high performance characteristics. This could also greatly expand the design space for the Carbon protocol as it was built with Ethereum constraint in minds. What this means is that Carbon features that are not possible on Ethereum can certainly be made available on Sei in the future.
As the Sei ecosystem matures and grows, I think that the Carbon community will be well position to expand and grow together. In general, I see very little downside to deploying on Sei and a lot of benefits for the Bancorian community.
