Scallop – Lending & Borrowing on SUI

Scallop is a rapidly growing App on the SUI Blockchain. The Core Usecase is their Lending & Borrowing with many incentives, a fast and easy to use Dashboard & many more.

Scallop_Logo_Large

What is Scallop?

 

Scallop is the next generation money market based on Sui. They are setting new standards with institutional-grade quality, seamless composability, and robust security. With a TVL (total value locked) of over $130M and a Total Supply of over $200M the project is placed as Number 3 in the “highest TVL ranking” for the SUI Blockchain. 

Scallop-Ranking

Why Scallop?

Scallop features an industry leading model with features like:
– Trilinear Interest Rate Model
– Protected Collateral Vault
– Soft Liquidation
– Delayed Model Change
– Borrow/Outflow/Collateralization Limits
& many more.

Scallop-Features

Highest Security

Scallop benefits from a team with huge knowledge. They have a team with cybersecurity & CTF challenge background which wants to make their dApp as safe as possible, so they implemented:

– Security Partners – Zellic, Ottersec & MoveBit
– Multi-Oracle Strategy
– Open-source Protocol
– Bug Bounty

Scallop-Security

How Scallop Lend Works?

It is explained in this picture, but to be honest, its hard to explain and hard to follow for newbies. Try to understand it and constantly learn to improve your skills!
Scallop-Lend-Tutorial

Scallop’s Investors

Scallop benefits from a amazing power which is produced by their investors. They closed a funding round of $3M with many known investors like cmsholding, 6thmanventures, kucoinventures and more.
Scallop-Investors

$SCA (Scallops Token)

Scallop has a own token called $SCA. The Token has a max supply of 250,000,000 SCA. Also, this is the Token Allocation:

Liquidity Mining
45% Distributed via a variety of liquidity incentivization schemes.

Scallop Project Contributors
15% Owned by the founding team contributors.

Dev & Operation
4% Allocated for development and operational purposes.

Strategic Partners/Investor
15% Up to 15% reserved for private fundraising and strategic partnerships.

Advisor
1.5% Owned by key advisors.

Ecosystem/Community/Marketing
7.5% Allocated to fund marketing and platform growth initiatives.

Liquidity
5% reserved for liquidity.

Treasury
7% reserved for the Treasury.

Scallop-Allocation-Vesting

Scallop App

Scallop has a very intuitive App, their main features are: Lending, Borrowing, Swap, Bridge & Referral.
As swaps, bridges and referrals are very easy to understand, we will only cover lending and borrowing.
Scallop-App

Lending

These Features can be explained in a very detailed way. We will explain them very simple. If you want to use your SUI, USDC, USDT or other Cryptos to farm yield by lending, simply go to: app.scallop.io and supply your Crypto.

The Supply APR’s mostly change between 15-30% which is very good for stablecoins like USDC. They are auto compounding, so you don’t need to harvest, your supplied amount will simply grow over time.

Scallop-Lending

Borrowing

Borrowing works also easy. Click on the Borrowing Section, deposit your USDC or other cryptos to the collateral Pools (Check collateral weight) and then you can borrow against your collateral position.

Depending on your risk management, you could repeat this process by swapping your borrowed tokens into another token which you then deposit again in the collateral pool. But keep in mind that there is a higher risk attached to this.

Scallop-Borrowing

Conclusion

 

Scallop is a very interesting project. Just 1 year ago, they weren’t even listed on defiLlama and started with a TVL of $30k in July 2023. During not even 1 year they made awesome gains and it seems that they will never stop to grow!

We love their design, their community, their features and the team.
Congrats on this awesome project!

Scallop’s Socials

 

Disclaimer

 

No Financial Advice. Please always do your own research. We are not responsible for any losses.

All links on this Website may be referrallinks.

Back to the Homepage: https://explore-crypto.com

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