Scallop (SCA): The Most Secure Lending Protocol on Sui

What is Scallop (SCA)?

Scallop (SCA) is a leading decentralized money market on the Sui blockchain. With a focus on institutional-grade quality, enhanced composability, and robust security, the platform is committed to providing users with a dynamic money market with high-interest lending, low-fee borrowing, etc. Scallop’s innovative solution made it the first DeFi project to receive the official grant from Sui in 2022.

Scallop's smart contracts have undergone thorough auditing by reputable companies like OtterSec and MoveBit to ensure the integrity and reliability of the protocol. With a commitment to transparency and trust, Scallop provides users with a secure environment to engage in lending, borrowing, and other financial activities.

How Scallop (SCA) Works

Scallop operates through a series of interconnected features, each designed to empower users and optimize their financial experience.

Lending

Scallop allows users to lend their assets to borrowers, who are obligated to pay interest on the borrowed amount, in a decentralized manner. Through asset pools, suppliers can earn interest on deposits, which are then borrowed by borrowers who provide sufficient collateral assets.

Borrowing

Apart from allowing the normal peer-to-peer lending and borrowing, Scallop offers borrowers the flexibility to create up to five sub-accounts so they efficiently manage multiple positions at the same time. The protocol utilizes collateral pools, collateral weight, and borrow weight parameters to control borrowing capacity and mitigate risks associated with volatile assets.

Zero Fee Flash Loans

One of Scallop's innovative features is zero-fee flash loans, allowing users to borrow assets with no upfront collateral and return them within the same blockchain transaction. This feature provides users with unparalleled flexibility and liquidity, empowering them to execute complex financial strategies with ease.

Interest Rates

Interest rates for borrowing on Scallop are determined by static linear models, with rates adjusting based on changes in supply and demand. The protocol employs a trilinear interest rate model designed to optimize stability and responsiveness to market conditions, ensuring fair and efficient allocation of funds.

Liquidations

Scallop implements a soft liquidation mechanism to protect lenders and borrowers in the event of collateral value fluctuations. Liquidators are incentivized to participate in the liquidation process, receiving rewards for repaying outstanding loans and obtaining collateral assets at discounted prices. This mechanism helps maintain the stability and integrity of the protocol while minimizing potential losses for users.

Tokenomics

Scallop has a dual-token model with SCA and veSCA. Scallop's main token, SCA, serves as the transferable representation of utilities within the protocol. Meanwhile, veSCA is a special form of SCA that enhances decentralization and offers benefits such as governance voting power and fee rewards. Users can obtain veSCA by locking SCA tokens for a specified duration, contributing to the stability and strength of the Scallop platform.

SCA Goes Live on Bitget

Sui is a scalable and innovative blockchain that is increasingly captivating the attention of savvy investors. At the forefront of this growing ecosystem is Scallop, a leading platform offering dynamic peer-to-peer money market solutions. As the gateway to Scallop and Sui, the SCA token presents a compelling opportunity for traders seeking exposure to this promising landscape.

With its robust infrastructure and commitment to security, Bitget, a leading crypto exchange, provides the ideal platform for trading SCA. Whether you're looking to capitalize on the growth potential of Sui or leverage the innovative features of Scallop, Bitget offers the perfect blend of reliability and accessibility to help you navigate the exciting world of decentralized finance.

How to Trade SCA on Bitget

Step 1: Go to SCAUSDT spot trading page;

Step 2: Enter the amount and the type of order, then click Buy/Sell.

For detailed instructions on how to spot trade in Bitget, please read The Uncensored Guide To Bitget Spot Trading.

Scallop represents a significant advancement in the realm of DeFi, offering users a secure and efficient platform to engage in lending, borrowing, and asset management. With its emphasis on institutional-grade quality, enhanced composability, and robust security, Scallop is well-positioned to address the evolving needs of the DeFi community.

Trade SCA on Bitget now!

Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.

　　Disclaimer: Includes third-party opinions. No financial advice. See Risk Warning.