Scallop (SCA): A Next-Generation P2P Money Market for Sui

In the past few years, decentralized finance (DeFi) has helped to revolutionize the lending industry. By simplifying the lending and borrowing process, services like Scallop make it much easier for people to get the funds they need. Scallop's peer-to-peer (P2P) services aim to provide low-fee borrowing, while still maintaining accessibility and security. If you're interested in learning how this next-generation system works, this article features what you need to know.

Key Takeaways:

• Scallop is a dynamic money market that offers people both high-interest lending and low-fee borrowing. 

• It runs on the Sui blockchain, and includes a comprehensive tool kit for traders and software developers.

• Looking to trade Scallop tokens? Bybit now offers the SCA/USDT Spot trading pair. To celebrate this listing, Bybit is holding two exclusive events in which you can earn a share of the 833,333 SCA and 80,000 USDT prize pools!

What Is Scallop?

Scallop is a dynamic money market that offers people both high-interest lending and low-fee borrowing. It runs on the Sui blockchain, and includes a comprehensive tool kit for traders and software developers.

History of Scallop

Scallop was launched in 2021 by developer Kris Lai. Also known by his internet handle of Kriss, the Scallop founder is a long-time crypto enthusiast. After initially working as a full-stack developer and network security engineer, Kriss began working to provide blockchain users with better lending solutions. Initially, Scallop was a small lending system called Scallop Pools.

However, Kriss's unique design gained the attention of the Sui Foundation. The Scallop team won first place at the Sui Buildhouse Seoul Demo Day, and in 2022, Scallop became the first DeFi protocol to get funding from the Sui Foundation. Kriss was able to expand his project and launch the Scallop protocol on the Sui ecosystem.

What Does Scallop Aim to Achieve?

Like most other blockchain lenders, Scallop's main goal is to provide people with a convenient way to obtain a loan. The platform’s team hopes to help it stand out by fixing a few specific problems that plague many other DeFi lenders:

• Scallop focuses on emphasizing institutional-grade quality, and therefore wants its lending system to be just as reliable as a traditional bank's.

• Its system uses the robust security of the underlying Sui network along with additional security measures to help keep users' money safe.

• The Scallop project offers institutional-grade quality-enhanced composability that makes it compatible with a variety of blockchain networks.

• Scallop plans to make its platform even more functional by offering self-administration tools for professional traders and a software development kit (SDK) for developers.

How Does Scallop Work?

Scallop runs on the Sui blockchain. To use Scallop, you first need to link a Sui wallet to your Scallop account and then add SUI tokens to your wallet. Scallop also offers a multichain bridge for taking assets from chains like Ethereum, BNB Chain, Solana and Polygon, and placing them in the Scallop system.

Once users have their assets in Scallop, they can access a variety of lending pools. These lending pools exchange digital assets for sCoins, which are Scallop’s version of the initial asset. For example, a person borrowing SUI would exchange their SUI for sSUI. This system allows Scallop to handle interest while keeping the underlying asset(s) safe.

The Scallop protocol functions as a P2P lending program. This means that users borrow digital assets from each other and lend directly to each other without needing to go through an intermediary. Peer-to-peer lending offers many advantages for DeFi lenders, including reduced fees and more accessible loans.

Features of Scallop

As a unified platform for borrowing and lending, Scallop contains a variety of helpful features.

Lending

If you have extra cryptocurrency on which you wish to earn passive income, you can join one of the Scallop asset pools, which lets you participate in high-interest lending. While you're participating, your cryptocurrencies are exchanged for sCoins that gradually accrue interest. The sCoins provide high-interest lending because the exchange rate for sCoin is constantly increasing. When you turn in your sCoins for your original asset, you get back more tokens than you started with.

Borrowing

This DeFi protocol also offers a lot of benefits for borrowers. By emphasizing institutional-grade quality loans, Scallop ensures people can get extra crypto quickly and easily. After depositing your collateral coins, you can then borrow money worth a certain percentage of your collateral. Interest rates shift, depending upon supply and demand, and your risk level shifts as well, depending upon the price of your underlying collateral. Before each loan, you'll see clear terms for how much interest you'll pay and when your loan might be liquidated.

Airdrop

To market their robust security and great loans, Scallop has hosted a few airdrops. People become eligible, for instance, by borrowing money on Scallop or participating in the Scallop Discord channel. Those who do so may redeem Mystery Pearl points, which can later be exchanged for Scallop tokens.

Swap

Professional traders also use Scallop's oracles and bridges to help them with swaps. The Scallop Swap feature is powered by Aftermath Finance, and allows for swaps between all of the chains currently supported on Scallop.

Bridge

Wormhole Connect is the service that Scallop uses to bridge tokens. Through this bridge, people can transfer assets between all of the chains that Scallop supports. This service is entirely free (other than gas fees on Sui), and often results in almost instantaneous transfers.

Scallop Road Map

In its three years of existence, Scallop has gone from a small-scale lending pool to a comprehensive platform with a variety of assets and lending options. Its 2024 road map is focused primarily on ease of use, with plans to launch a new user interface and add more tools to its platform. 

The Scallop team also hopes to integrate Telegram and Discord Bots into the service. Its long-term plan is to incorporate both cross-chain and leveraged lending. This will allow users to borrow with ease from multiple chains, and to transform their loans into investments on spot trading platforms.

SCA Tokenomics

SCA is a utility token for the Scallop system. It doesn't assist with managing interest, since that’s left up to the sCoins, but it does help the program manage user incentives and interpersonal exchanges. SCA’s total supply is 250 million tokens, with a current circulating supply of 35.5 million tokens. The tokens are allocated in the following manner:

• Liquidity mining: 45%

• Scallop core contributors: 15%

• Scallop partners and investors: 15%

• Ecosystem, community, and marketing: 7.5%

• Treasury: 7%

• Liquidity: 5%

• Development and operations: 4%

• Scallop advisors: 1.5%

SCA Price Prediction

The SCA token went live at a price of around $0.94, quickly reaching its all-time high of $1.47. Since then, its prices have been fluctuating between $1.10 and $1.40 for the most part. If the coin continues on this path, experts from DigitalCoinPrice suggest that SCA may reach $2.35 by the end of 2024 and increase to $8.01 by 2030. In addition, the coin's price may also rise because Bitcoin price surges are currently driving up crypto prices.

Where to Buy SCA

Looking to trade Scallop tokens? Bybit now offers the SCA/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, fund it with cryptocurrency and navigate to the SCA/USDT Spot trading page. 

To celebrate this listing, Bybit is holding four exclusive events where you can earn a share of the 833,333 SCA and 80,000 USDT prize pools!

The first event, Token Splash/Deposit to Earn, will award 40 SCA each to the first 4,000 new users who complete the following two steps between Mar 7, 2024, 10AM UTC and Mar 22, 2024, 9AM UTC:

1. Sign up for a Bybit account and complete Identity Verification.

2. Accumulate a deposit volume of at least 100 USDT worth of SCA, or deposit 100 USDT and use your Bybit account to buy any amount of SCA via your first trade.

If you’re already a Bybit user (prior to Mar 7, 2024, 10AM UTC), no worries — because you can still earn 20 SCA! Simply accumulate a deposit volume of at least 100 USDT worth of SCA during the event period, or deposit 200 USDT and buy at least 200 USDT worth of SCA using your Bybit account. Please note that rewards will be distributed on a first-come, first-served basis to the first 7,000 existing users.

The second event, Trade to Earn, is being held from Mar 8, 2024, 10AM UTC through Mar 22, 2024, 11:59PM UTC. Simply trade at least 200 USDT worth of SCA on Spot during the event period to grab a share of the 80,000 USDT prize pool. The more you trade, the larger your share of the prize pool.

Please note that rewards will be capped at 1,000 USDT per user.

The third event, Stake to Earn, is being held from Mar 8, 2024, 10AM UTC through Mar 18, 2024, 11:59PM UTC. Simply stake 200 to 1,000 SCA with Bybit Flexible Savings to start earning up to 999% APY.

The fourth event, Lucky Draw, takes place from Mar 7, 2024, 10AM UTC through Mar 22, 2024, 11:59PM UTC and gives you the opportunity to grab a share of the 233,333 SCA prize pool.

Is SCA a Good Investment?

The SCA token is likely to experience some price increases in the upcoming months. Scallop’s DeFi protocol has gotten some attention for its award-winning design and its prestigious investors. It's certainly a valid choice for investors looking for short-term growth from a startup. If Scallop can attract a lot of users, it might also be a promising option for anyone seeking a long-term investment in the DeFi finance world.

However, that doesn't mean Scallop is a foolproof option for professional investors. Some users on social media have been spreading rumors that Scallop may be a scam because it doesn't have an extensive road map, and has been promising leveraged lending (for a while now) without actually releasing it. If enough negative press emerges, SCA’s price could end up falling quite a bit. Before purchasing SCA or any cryptocurrency, make sure to research current market conditions and avoid overextending yourself financially.

Closing Thoughts

Scallop's peer-to-peer lending services are sure to appeal to Sui ecosystem fans. This dynamic money market offers high-interest lending, institutional-grade quality-enhanced composability and fantastic security in one unified platform. All of these perks have created intrigue among investors, helping Scallop to become the first DeFi protocol to get a grant from the Sui Foundation. Though it still needs some more work to distinguish itself from other DeFi lenders, Scallop and its SCA token are worth checking out.

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