If you’re a DeFi enthusiast searching for opportunities to earn solid yields on your stablecoins and ETH, this article is just what you need. You may have heard of SEI blockchain before, but perhaps haven’t had the time to explore it in depth. Don’t worry—I’m here to guide you through what’s happening on SEI and why it’s becoming an attractive destination for DeFi investors.
SEI is Expanding at a Rapid Pace and Why you should Pay Attention?
SEI is actively building its ecosystem by recruiting content creators through its SEI Creators Round #4, who will be promoting the SEI ecosystem and bringing in new users. The current TVL on SEI is 207M USD. As more users join SEI, protocols are likely to increase their Total Value Locked (TVL), which could boost their valuations and potentially increase the price of assets in the ecosystem.
Right now, SEI is offering high-yield opportunities to incentivize participation in DeFi, making it an appealing option for those looking to get involved early.
Why I think SEI could have an airdrop in the future?
Another reason to consider SEI is the potential for a third airdrop. SEI has already completed two airdrops—the first was underwhelming for many, but the second heavily rewarded active participants in the ecosystem. There are rumors that a third airdrop could be on the horizon, likely rewarding users who engage deeply with SEI. Given that SEI has allocated 51% of its tokens to the community, there is a strong possibility of future distribution.
Though this is speculative, I’m positioning myself by actively participating in SEI’s ecosystem—whether it’s through DeFi, gaming, memes, or NFTs—to stay ahead of the curve.
In this post, I’ll focus on SEI’s DeFi ecosystem. While I’ve already compiled a list of play-to-earn (P2E) games on SEI, where you can potentially earn up to $1,500 per week, and will cover SEI NFTs in an upcoming article, here we’ll dive deep into what DeFi on SEI has to offer.
If you would like to position yourself for the upcoming SEI airdrop (if any), then consider playing with SEI DEFI.
DEFI on SEI: Latest Developments - What’s happening?
SEI’s decentralized finance (DeFi) ecosystem has been experiencing remarkable growth, with its Total Value Locked (TVL) increasing from under $10M in August 2024 to over $200M by September 2025. This surge is expected to continue, with estimates suggesting SEI’s TVL could reach $500M by the end of 2024.
| Protocols | Type | TVL |
| Yei Finance | Lending | $133.64m |
| SiloStake | Liquid Staking | $68.45m |
| Dragon Swap | Dexes | $29.18m |
| Jellyverse | Dexes | $15.34m |
Several new projects have been raising funds and launching on SEI, contributing to this expansion. One notable example is Filament Finance, which is developing a decentralized perpetual (PERP) solution. The project recently raised $1.1M in a seed funding round from investors such as LIF, Sypre Capital, and Halo Capital.
SEI has also welcomed new partners into its Liquidity Alliance. Vortex, a key player in algorithmic market-making and token advisory, is providing comprehensive support to project founders. With connections to over 50 exchanges, 30 venture capital firms, and a strong network of business development partners, Vortex plays a pivotal role in maintaining market efficiency and offering valuable resources to over 180 projects worldwide.
Additionally, XION is integrating with SEI, bringing its cutting-edge chain abstraction technology to the ecosystem. This integration is designed to simplify blockchain adoption by removing many of the traditional complexities associated with crypto. Features such as walletless infrastructure, email-based logins, and gasless transactions aim to create a seamless user experience, making it easier for a wider audience to interact with decentralized applications.
Yield-generating liquid staking tokens like Seiyan ETH and Super Seiyan ETH, from Nucleus Earn and Dinero XYZ, have also become key players in the ecosystem, providing new opportunities for users to earn returns.
To further incentivize participation, SEI has partnered with Jumper to launch a campaign where users can earn additional SEI tokens as yield, further enhancing engagement in the ecosystem. To take part in SEI X Jumper campaign, go to Jumper profile and in the section where it shows all the ongoing campaigns look for SEI blockchain related projects, and complete the steps. Please note, you should be able to withdraw rewards every 24 hours.
In summary, SEI’s DeFi ecosystem is evolving rapidly, with new projects, integrations, and incentives driving user participation and TVL growth.
Prerequisites to Participate in SEI Defi
To join the SEI DeFi ecosystem, your wallet must be EVM-compatible. Start by visiting app.sei.io, connect your Compass wallet, and enable EVM compatibility by completing the CAPTCHA twice. Once the process is done, your wallet is ready for SEI DeFi.
If you’re new to SEI, you’ll need to bridge funds from other blockchains using Jumper.exchange or Symbiosis Finance. Ensure you exchange for SEI tokens, as they are needed to pay for gas fees on the SEI network
5 DEFI Projects on SEI you can participate and How
Yei Finance
Yei Finance is a decentralized, non-custodial money market protocol built on the SEI blockchain. It is a fork of AAVE, which allows users to deposit assets like USDT, iSEI, SEI USDC, and WETH to earn passive income through yields. Borrowers can access funds through both overcollateralized and undercollateralized loans, including flash loans, all within strict risk parameters. Yei Finance prioritizes transparency, offering tools to manage financial risks, and supports a wide range of assets, making it a flexible and innovative platform for investors seeking strategic opportunities in the crypto market.
As of 28th September, 2024, Yei Finance is the top most protocol on SEI blockchain with the highest liquidity of 135M USDT.
To provide liquidity on Yei Finance:
- Go to Yei Finance
- Connect your EVM wallet (I recommend Rabby wallet)
- Click on the asset you want to provide liquidity to.
- Enter amount.
- Submit and approve transactions.
Once successfully added, you will be able to see how much you have added, on the dashboard.
Silostake
Silo Stake is a liquid staking protocol on the SEI blockchain that allows users to stake SEI and receive iSEI in return. iSEI can then be used in various DeFi protocols to earn additional interest. Users can either swap iSEI back to SEI on a decentralized exchange or request a withdrawal on Silo Stake, which takes about 7-14 days. With a current TVL of $68.2M, Silo Stake is the second largest protocol on SEI, offering a straightforward liquid staking solution for DeFi investors.
To provide liquidity on Silostake:
- Go to Silostaking
- Connect your EVM wallet
- Enter the amount of SEI you want to liquid stake.
- Submit and approve transactions.
Once successfully added, you will get iSEI immediately on your wallet.
DragonSwap
Dragonswap is a the top most decentralised exchange on SEI blockchain. It is the only protocol where you can add liquidity, farm memecoins and earn high yield. Dragonswap also runs several campaigns, where you can participate and earn extra yield.
The current TVL on Dragonswap is 30MUSD. It is the third largest protocol on the SEI blockchain.
To add liquidity on Dragonswap:
- Go to Dragonswap Pool
- Select the pair you want to add liquidity to.
- Enter the amount, an add liquidity.
- Submit and approve transactions.
You can also add liquidity to Farm. To do so:
- Go to Dragaonswap farm
- Select the pair you want to add liquidity to.
- Enter the amount, an add liquidity.
- Submit and approve transactions.
Jellyverse
Jellyverse (a fork of Balancer) is a community-governed ecosystem (Jellyverse DAO) designed to lead the next generation of DeFi on SEI. It offers a sustainable, yield-driven environment where users can trade, take loans, leverage assets, and access future protocols. At its core is the Jelly Token (JLY), which powers governance, revenue sharing, liquidity mining, staking, and more.
Jellyverse also features JellySwap, a decentralized exchange with advanced trading tools, and JellyStake, a staking solution introducing Staking-NFTs. Through its jAsset system, Jellyverse connects decentralized and real-world assets, offering secure and efficient synthetic asset trading.
To provide liquidity on Jellyverse:
- Go to Jellyverse
- Select the incentivised pool you want to add liquidity to.
- Add those assets.
- Submit and approve transactions.
Filament Finance
Filament Finance is the first native perpetual DEX on the SEI Network, designed for traders in low-liquidity environments. It combines an orderbook with its innovative COMB (Compartment-based) liquidity pool, providing deep liquidity across price levels. Traders can access up to 30x leverage on top crypto assets like BTC and ETH, benefiting from high liquidity and one-click trading. Filament is built on SEI’s parallel EVM and has been audited by Zokyo and Hexans, ensuring security and reliability.
To provide liquidity on Filament.Finance,
- Go to Filament.finance
- Click on Deposit.
- Enter the amount.
- Click and approve transactions.
- Go to COMB section.
- Deposit USDC and get FLP (interest earning assets) in return.
Conclusion
I’ve provided a detailed overview of the SEI DeFi ecosystem, and I’ve personally started investing, anticipating that SEI’s 3rd airdrop will reward active DeFi users. The current rewards are substantial, and I encourage you not to overlook what’s unfolding on SEI. Stay informed, and if you have any questions about SEI DeFi, feel free to ask in our Telegram group or in the comments below.
