Monaco deep dive: Wall Street-grade trading layer on Sei
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A1 deep dive on Monaco: off-chain Rust matching with 5-25 microsecond latency, settlement on Sei under 400ms, gasless order management, a unified liquidity pool and PitPass revenue sharing instead of PFOF.
Key claims
5-25 microsecond backend latency, median execution under 1ms
Settlement on Sei EVM in under 400ms
Testnet and Season 0 points program in Q4 2025
The next project-specific deep dive of our @a1research__ series is live and this one is definitely worth paying attention to!
We're covering @monacotrading, which brings the first "Wall Street-Grade" trading layer onchain, building on @SeiNetwork.
Micro-second latency and an infrastructure-focused design approach that returns the Sei ecosystem to its roots (a trading-focused high performance chain with native infra enabling builders) make this one a case that is truly unique.
Highly recommend to check out the full article below, but in meantime here is a TL;DR ↓
➤ Monaco is built within Sei's universally programmable and composable ecosystem, with the upcoming Sei Giga upgrade (a reimagined EVM) marking a a 50x performance improvement over existing EVM environments and enabling 400ms settlement finality on the L1 serving as the foundational global settlement layer for Monaco's execution (with micro-second soft confirmations)
➤ Sei Giga's performance is enabled by the Autobahn consensus mechanism, which introduces a multi-proposer architecture for parallel data streams, and allows for asynchronous execution to remove computational bottlenecks.
➤ Monaco itself employs a strategic hybrid architecture, using a high-performance off-chain matching engine built in Rust for speed (with mico-second execution latency), while ensuring security through onchain settlement on the Sei EVM L1 in under 400ms.
➤ As mentioned before, the Monaco engine delivers verifiable institutional-grade performance with 5-25 microsecond (µs) backend latency, a median execution speed of under 1 millisecond, and 99% of trades executing within 10-20 milliseconds, a significant improvement over existing onchain CLOBs.
➤ A key advantage for market makers is that placing, canceling, and modifying orders is gasless because it occurs off-chain, allowing them to provide tighter spreads and deeper liquidity without prohibitively high costs.
➤ To solve the increasing issue of liquidity fragmentation across various siloed appchains, Monaco features a single, unified liquidity pool seeded by professional market makers, which any application can permissionlessly access from day one within Sei's composable ecosystem.
➤ As a credibly neutral infra-level protocol, Monaco is purely backend infrastructure and has no frontend of its own, creating a level playing field for an entire ecosystem of builders (incl. @m1markets, @SymphonyAg or @trademontecarlo) to thrive without competing with the core team.
➤ The PitPass revenue-sharing model provides a transparent, onchain alternative to traditional finance's flawed PFOF system, allowing builders to programmatically and permissionlessly earn a share of trading fees from the order flow they generate.
➤ The platform's architecture unlocks new financial products previously impossible onchain, such as RWA trading platforms, short-duration options markets, and institutional-grade prediction markets.
➤ Monaco is the central Execution Layer in Sei's "full-stack decentralized Wall Street" vision, sitting between a diverse app layer of frontends and Sei's global settlement layer.
➤ Testnet and Season 0 the Monaco points program are scheduled to launch in Q4 2025, serving as the first critical public test of the platform's ambitious vision, stay tuned anon.
Want to dive deeper?
Check here! ↓
Monaco is incubated by Sei Labs btw 👀
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What came next · since 07 Oct 2025
Since then
Zero has written 2 more pieces on Monaco since this one.