Scallop is a next-generation, peer-to-peer money market built on the Sui blockchain, marking a significant milestone as the first DeFi protocol to receive official grant support from the Sui Foundation. Designed with institutional-grade security, enhanced composability, and user-centric functionality, Scallop delivers a comprehensive financial ecosystem featuring high-yield lending, low-cost borrowing, integrated AMM capabilities, and self-managed digital asset tools—all within a unified platform. For advanced users and developers, Scallop also offers an SDK to enable deeper integration and automated trading strategies.
Whether you're a beginner exploring decentralized finance or an experienced trader seeking efficient capital utilization, Scallop provides the infrastructure needed to maximize returns and manage risk effectively in the fast-evolving Sui ecosystem.
Core Features of Scallop
Scallop’s primary focus is on lending and borrowing, but its feature set extends far beyond basic DeFi functions. The platform supports multiple asset pools, dynamic interest rates, and flexible staking mechanisms that empower users to optimize their positions.
Key features include:
- Lending Pools: Supply assets like SUI to earn competitive interest rates.
- Borrowing Pools: Access liquidity by using supplied assets as collateral.
- sCoin Staking: Automatically stake supply tokens (e.g., sSUI) into yield-boosting sCoin pools.
- Multi-language Support: User-friendly interface available in various languages.
- Developer SDK: Enables algorithmic trading and integration for professional users.
These functionalities are accessible through popular Web3 wallets such as TokenPocket, making onboarding seamless for new users.
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Step-by-Step Guide to Using Scallop
Step 1: Access Scallop via TokenPocket
Open the TokenPocket wallet app and navigate to the Discover tab. Locate Scallop under the "Popular DApps" section and tap to launch the application. No downloads or installations are required—Scallop runs directly in your mobile browser via WalletConnect integration.
Step 2: Connect Your Wallet
Upon first use, you'll be prompted to connect your wallet. Tap Connect Wallet and select TokenPocket from the available options. This securely links your wallet to the Scallop dApp without exposing private keys.
To improve accessibility, click the US flag icon in the top-right corner to switch between supported languages, including English, Chinese, and others.
Step 3: Supply Assets to Lending Pools
Once connected, you’ll see two main sections: Lender Asset Pool and Borrower Asset Pool. To begin earning yield, go to the Lend Pool and choose an asset to supply—such as SUI.
Enter the amount of SUI you wish to deposit. By default, Scallop enables automatic staking of sSUI (the receipt token representing your supplied SUI) into the sCoin pool, which enhances your yield through additional rewards.
If you prefer not to stake in sCoin, uncheck the corresponding option before confirming. You can always adjust this later.
Step 4: Manage sCoin Staking
The sCoin pool allows users to further boost returns by staking their supply receipt tokens (like sSUI). If you enabled auto-staking during supply, your sSUI will already be active in the sCoin pool.
To manually stake or unstake:
- Navigate to the sCoin section.
- Select the token (e.g., sSUI).
- Choose Stake or Unstake, enter the amount, and confirm the transaction via your wallet.
This process is gas-efficient and typically confirms within seconds due to Sui’s high-performance architecture.
Step 5: Use Borrowing Functions
The borrower side consists of two key components:
- Collateral Pool: Deposit supported assets as collateral.
- Borrow Pool: Draw loans against your collateralized position.
To borrow:
- First, add assets to the Collateral Pool (e.g., SUI or other accepted tokens).
- Once collateralized, visit the Borrow Pool.
- Select a stablecoin like USDT, input the desired amount, and click Borrow USDT.
Your borrowing limit is dynamically calculated based on the value and loan-to-value (LTV) ratio of your collateral. If you attempt to borrow without sufficient collateral, the system will display an error message—ensuring safe leverage levels.
Step 6: Repay Loans
Repayment is straightforward. Go to the Repay section, select the borrowed asset (e.g., USDT), enter the amount, and confirm. Repaying reduces your debt and frees up collateral for future use or withdrawal.
All transactions are reflected in real time thanks to Sui’s low-latency network, giving users immediate feedback on their financial positions.
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Why Scallop Stands Out in Sui’s DeFi Landscape
Scallop differentiates itself through several strategic advantages:
- Security-First Design: As a Sui Foundation grant recipient, Scallop adheres to rigorous code audit standards and institutional-grade security protocols.
- Capital Efficiency: High LTV ratios and low fees allow users to leverage capital more effectively than many competing platforms.
- Seamless Integration: Native compatibility with Sui-native wallets like TokenPocket ensures smooth user experiences across devices.
- Yield Optimization: Dual-layer yield via lending + sCoin staking increases passive income potential significantly.
Moreover, Scallop’s emphasis on composability means it can integrate with other DeFi protocols on Sui—such as decentralized exchanges or yield aggregators—enabling complex financial strategies within a single ecosystem.
Frequently Asked Questions
Q: What is Scallop?
A: Scallop is a decentralized lending and borrowing protocol on the Sui blockchain, offering users the ability to earn interest on deposits and borrow assets using collateral—all with institutional-grade security and high performance.
Q: Which wallet should I use to access Scallop?
A: You can access Scallop through TokenPocket or any compatible Sui wallet. Simply open TokenPocket, go to Discover > DApps, and search for Scallop.
Q: Can I lose money using Scallop?
A: Yes, while Scallop employs safety mechanisms like liquidation thresholds, providing insufficient collateral or market volatility can lead to partial loss of assets if positions are liquidated.
Q: Is there a minimum amount required to start lending?
A: There is no official minimum set by Scallop; however, transaction costs and optimal yield generation may make very small deposits less efficient.
Q: How does sCoin staking increase my returns?
A: When you supply assets like SUI, you receive sSUI tokens. Staking these in the sCoin pool earns additional rewards on top of base lending yields—effectively compounding your returns.
Q: Does Scallop support cross-chain assets?
A: Currently, Scallop operates natively on the Sui blockchain and supports Sui-based assets only. Cross-chain functionality may be introduced in future updates.
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Final Thoughts
Scallop represents a major leap forward in decentralized finance on Sui, combining robust infrastructure with intuitive design. Its focus on security, yield optimization, and developer extensibility makes it a go-to platform for both retail and professional users looking to participate in DeFi with confidence.
By integrating seamlessly with wallets like TokenPocket and offering powerful features such as automated staking and real-time borrowing limits, Scallop lowers barriers to entry while maximizing financial opportunity.
As the Sui ecosystem continues to grow in 2025 and beyond, protocols like Scallop will play a central role in shaping the future of open finance—offering faster transactions, lower costs, and smarter tools for global users.
Whether you're supplying your first SUI deposit or building automated strategies with the SDK, now is an excellent time to explore what Scallop has to offer.