Skip protocol is deploying on Sei

Skip protocol is deploying on Sei

Sei, the fastest Layer 1 for exchanges and the fastest chain to finality, is thrilled to announce that the Skip protocol will be deploying on the Sei ecosystem. Skip is building MEV capture mechanisms that redistribute “good” MEV to validators and stakers, while also preventing our traders from “bad” MEV attacks such as sandwiching or frontrunning.

This integration represents a crucial step for Sei in aligning the incentives for validators, traders, and stakers. Current MEV solutions fall into 2 main categories, offensive solutions, and defensive solutions. Offensive MEV solutions accept that some MEV is inevitable and therefore seek to extract that value and redistribute it to the ecosystem and its users. Defensive MEV solutions seek to prevent MEV generated from frontrunning attacks by encrypting the transaction mempool or assembling a set of trusted validators.

Skip Money enables Sei to simultaneously enact both strategies. This means that Sei will be able to offer both privacy and real value accrual to its ecosystem and users. Sei believes that as DeFi matures, MEV prevention and capture mechanisms will be non-negotiable features for any L1 chain.

What does this integration enable for Sei and its users?

MEV Auctions: Sei users and validators will be passively rewarded by the recapture of MEV, which can be used to fund community pools, pay for or subsidize gas fees, increase staking rewards, or be given as direct rebates. Value is captured by auctioning the block sequencing rights to validators on a per-block basis. This mechanism allows Sei to appropriately “tax” validators and redistribute the assets to our users and ecosystem.

Frontrunning Protection: Users that submit transactions through Skip’s relay will have full front-running protection and end-to-end privacy on Sei. This is an invaluable tool for traders with sensitive trading strategies and high net-worth investors who expect market prices to move significantly due to their transactions.

Reversion Protection: Users who submit transactions through Skip’s relay are guaranteed that their transactions will not revert if they land on the chain.

Multi-transaction Atomicity: Users who submit multiple transactions through Skip in a “bundle” are guaranteed that all transactions within the bundle will not revert.

About Skip

Skip is the first-ever MEV marketplace that recaptures MEV for users without harming the user experience. By redistributing MEV revenue to validators, stakers, LPs, and others, chains that integrate Skip unlock a meaningful new long-term source of revenue that provides value for their participants. All this happens without harming the trading experience/price execution of traders, via Skip’s built-in frontrunning protection.

About Sei

Sei serves as the plumbing for the future financial system — infrastructure to support capital markets, starting with exchanges. Sei is the fastest Layer 1 for exchanges and the fastest chain to finality. Sei has achieved this by optimizing every layer of its tech stack to provide exchanges with an unfair advantage. Most L1s fall into two extremes, general-purpose and app-specific. Sei unlocks a new design space in between as a sector-specific L1. There are currently 60+ teams from Solana, Polkadot, Terra, and NEAR building on top of Sei going into mainnet. The team is backed by Multicoin, Delphi, Tangent, and several MMs like Hudson River Trading, and GSR.