Sei order book
Sei’s proprietary central limit order book combines online security and decentralization with offline speed and efficiency.
Most financial applications in traditional finance use CLOBs to make markets. However, among decentralized finance, the Automated Market Maker (AMM) model is more popular because it does not require the constant need to update orders and can facilitate trading regardless of market liquidity.
Sei promises low transaction fees and partners with market makers to create greater liquidity while offering an order book-based trading experience in a decentralized, permissionless manner. This unlocks many use cases that are not possible with AMM.
Why build a network of order books?
Order books provide a much better trading experience compared to AMMs, given their low slippage, narrow spreads and overall greater capital efficiency.
AMMs were created to address the shortcomings of the general purpose network on which they were built.
Sei’s main blockchain is built specifically for the order book it supports and is therefore a fundamentally scalable solution that supports the most efficient derivatives markets on the cryptocurrency chain.
