Scallop stands as a pioneering next-generation peer-to-peer money market within the Sui ecosystem. It holds the distinction of being the first DeFi protocol to receive an official grant from the Sui Foundation. By prioritizing institutional-grade quality, enhanced composability, and robust security, Scallop is dedicated to building a dynamic financial platform. This all-in-one solution integrates high-yield lending, low-cost borrowing, an Automated Market Maker (AMM), and self-custody tools for digital assets. It also offers an SDK for professional traders seeking advanced integration.
Core Features of Scallop
While its primary function is lending and borrowing, Scallop supports a diverse suite of DeFi features accessible through its intuitive menu system. This multi-functionality makes it a versatile hub for managing digital assets on the Sui network.
How to Use Scallop: A Step-by-Step Tutorial
This guide will walk you through the essential steps to start using Scallop's main features.
1. Accessing Scallop via a Web3 Wallet
Begin by opening your preferred Web3 wallet application. Navigate to its built-in discovery or DApp browser section. From the list of available applications, locate and select Scallop to launch the protocol's interface.
2. Connecting Your Wallet
Upon first use, you will need to connect your wallet. Click the Connect Wallet button prominently displayed on the site. A menu will appear showing various supported wallet connection options. Select your wallet provider to establish a secure link. The interface also includes a language toggle (e.g., labeled US) allowing you to switch between multiple supported languages for a more comfortable user experience.
3. Understanding the Lending Pools
Scallop’s main dashboard is organized into two primary sections: Lender Pools and Borrower Pools, each with further subdivisions.
To become a lender and earn interest, navigate to the Supply Pool. Here, you can choose which asset to supply. For example, to supply SUI tokens, select it from the list. You will then be prompted to enter the amount you wish to supply. The interface will typically have a default option checked to automatically stake the sSUI (the receipt token you receive for supplying SUI) into the corresponding sCoin pool to maximize your yield. To withdraw your supplied assets at any time, you would navigate to the same section, specify the amount, and execute the withdrawal transaction.
4. Utilizing the sCoin Staking Pools
The sCoin pool is designed for staking the receipt tokens (like sSUI) you obtain from supplying assets. If you opted for the automatic staking feature during the supply process, your tokens will already be earning staking rewards, and no further action is needed. If you need to manually stake or unstake these tokens, the process is straightforward. Simply follow the on-screen prompts for Stake or Unstake, confirming the transactions as requested.
5. Navigating the Borrower Pools
The borrowing side is split into the Collateral Pool and the Borrow Pool.
- Collateral Pool: This is where you deposit assets to be used as collateral for loans. You can deposit supported tokens by following the Deposit or Import instructions provided. Similarly, you can withdraw unused collateral via the Withdraw function.
- Borrow Pool: This is where you can take out loans against your deposited collateral. It is crucial to understand that assets already staked within other parts of the protocol cannot be simultaneously used as collateral; an error message will alert you if this is attempted. Your borrowing limit is determined by the value of the assets you have deposited as collateral. To borrow, select an asset like USDT, enter the desired amount, and click Borrow USDT. Repayments are handled in a separate Repay tab, where you can return the borrowed assets to close your loan position.
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Frequently Asked Questions
What is the Scallop Protocol?
Scallop is a next-generation money market protocol built on the Sui blockchain. It enables users to lend their digital assets to earn interest and borrow assets by providing collateral, all within a secure and composable DeFi environment.
What are sSUI and sCoin pools?
When you supply an asset like SUI, you receive a derivative token called sSUI, which represents your share of the supply pool. The sCoin pool is a secondary staking venue where you can lock these sSUI tokens to earn additional staking rewards on top of your lending interest.
Why can't I borrow against a specific asset I deposited?
The most common reason is that the asset is already being used elsewhere in the protocol, such as being staked in an sCoin pool. Only assets that are purely deposited as collateral and not otherwise utilized are available to secure a loan. You must unstake or withdraw the asset back to your collateral pool first.
Is Scallop secure?
Scallop emphasizes robust security and was the first DeFi project on Sui to receive a grant from the Sui Foundation, which signifies a level of technical validation. However, as with any DeFi protocol, users should always conduct their own research and understand the risks associated with smart contracts and market volatility.
What wallets are supported by Scallop?
Scallop supports a wide range of popular Web3 wallets that are compatible with the Sui network. The connection interface typically provides a list of these options, including both browser extension and mobile wallets.
Where can I find more detailed information?
For the most accurate and current information, always refer to the official Scallop documentation and website. These resources provide in-depth guides, audit reports, and the latest protocol announcements.