Scallop (SCA) operates as a next-generation decentralized finance (DeFi) protocol on the Sui blockchain, delivering a full range of financial tools such as lending, borrowing, automated market making (AMM), and asset management. The project was created by Scallop Labs, a group with backgrounds in fintech, cybersecurity, and DeFi, and has secured backing from key investors including CMS Holdings, 6th Man Ventures, KuCoin Labs, and Mysten Labs. It holds the distinction of being the first DeFi initiative to obtain an official grant from the Sui Foundation, a fact that highlights its strong security and institutional-grade standards.

The system includes a dynamic money market designed for low-fee borrowing and high-yield lending, serving both institutional and retail users. Liquidity is improved through an integrated AMM, while the Bridge and Swap interface facilitates smooth cross-chain transactions.

Scallop implements veSCA, a vote-escrowed variant of the native $SCA token. Users who lock their SCA tokens are issued veSCA, which provides governance power, increased rewards, and a portion of protocol revenues. This structure encourages long-term engagement and aligns user incentives with the platform's expansion.

Additionally, Scallop provides an open-source Software Development Kit (SDK) for developers and professional traders to build custom tools and trading strategies. The architecture utilizes Sui’s high-performance features, such as low latency and parallel transaction execution, to maintain a secure and efficient DeFi environment.

Scallop (SCA) is a prominent decentralized finance (DeFi) protocol operating on the Sui Network, designed to merge conventional financial services with crypto capabilities. Developed in the Move programming language, it provides a secure, scalable, and user-focused environment for lending, borrowing, and trading digital assets. The project is supported by an experienced team in fintech, cybersecurity, and DeFi, along with backing from investors such as CMS Holdings, 6th Man Ventures, KuCoin Labs, and UOB Venture Management. Notably, Scallop was the first DeFi protocol to secure a grant from the Sui Foundation, establishing it as a key component of the Sui ecosystem.

Core Technology

• Sui Network: This high-performance Layer 1 blockchain, which launched in May 2023, utilizes an object-centric data model and delegated proof-of-stake (DPoS) consensus to handle approximately ~297,000 transactions per second (TPS). Its ability to scale horizontally and process transactions in parallel results in low latency, instant finality, and minimal fees, making it well-suited for DeFi applications like Scallop.
• Move Programming Language: Created specifically for Sui, Move improves security by allowing for verifiable smart contracts that have fewer vulnerabilities than those written in languages like Solidity. Its resource-oriented architecture helps prevent common exploits, including reentrancy attacks, thereby strengthening Scallop’s defense against threats.

Key Features

Scallop bridges traditional banking and DeFi by providing:

• A dynamic money market that facilitates high-interest lending and low-fee borrowing.
• Automated Market Making (AMM) to ensure liquidity and efficient trading.
• Tools for self-administration of digital assets to aid in portfolio management.
• A Software Development Kit (SDK) that allows professional traders to execute advanced strategies.

Security and Compliance

Scallop emphasizes institutional-grade security through:

• The use of hardware security modules (HSMs) and multi-signature wallets to safeguard user assets.
• Routine security audits to identify and resolve vulnerabilities.
• Adherence to global regulatory standards to maintain legal operations and foster user trust.

SCA Token

Users can lend $SCA on the platform and utilize it as collateral for borrowing other assets. Furthermore, locking $SCA grants users veSCA, which allows participation in Scallop’s referral program, loyalty program, and other exclusive perks (users should monitor Scallop’s Twitter and official announcements for updates). At present, the main utility of veSCA is to increase borrowing rewards.

• SCA Documentation
• veSCA Documentation

Innovative Edge

Scallop’s improved composability allows for smooth integration with other DeFi protocols on Sui, contributing to a stronger ecosystem. By prioritizing scalability, security, and user empowerment, Scallop positions itself as a pioneer in peer-to-peer money markets, transforming the convergence of digital and traditional finance.

Scallop (SCA) operates as a decentralized finance (DeFi) protocol on the Sui Network, aiming to connect traditional finance with cryptocurrency via a secure, scalable, and user-focused platform. Its practical uses help users handle digital assets effectively while promoting financial inclusion and interoperability. Key applications include:

• Lending and Borrowing: Individuals can lend assets such as SUI, USDC, and USDT to gain dynamic interest rates that shift with market conditions. Borrowers may use assets as collateral for loans, benefiting from features like zero-fee flash loans and up to five sub-accounts for handling multiple positions, serving both retail and institutional clients.
• sCoins (Scallop Market Coins): Placing assets into Scallop’s lending pools generates sCoins (for example, sSUI, sUSDC), which stand for deposits and gather interest over time. These tokenized debts let users claim assets or participate in derivative financial products, boosting DeFi composability.
• Scallop Swap and Bridge: The protocol offers an interface for swapping assets and bridging across chains to enhance interoperability. Collaborations with services like Aftermath Finance enable multi-swap functions.
• Automated Market Making (AMM): Scallop’s AMM supplies trading liquidity, providing low slippage and effective price discovery for traders and liquidity providers.
• Digital Asset Management: Self-management tools enable users to oversee portfolios, utilizing collateral pools and risk management settings to maximize returns and reduce volatility.
• Developer Tools: Scallop provides a Software Development Kit (SDK) and Sui Programmable Transaction Block (PTB) utilities, allowing developers and traders to build custom strategies, including arbitrage trading and zero-interest loans, without heavy coding requirements.
• Institutional-Grade DeFi: Prioritizing security and regulatory compliance, Scallop connects with traditional financial systems to offer a reliable platform for institutional and retail users. Its open-source structure supports other Sui initiatives, such as Kai Finance and SuiPearl.

As of March 29, 2025, Scallop’s total value locked (TVL) hit $130.27 million, with $187 million in deposits and collateral and more than $15 billion in lending/borrowing volume, indicating robust adoption. Supported by investors including CMS Holdings, 6th Man Ventures, KuCoin Labs, and UOB Venture Management, and being the first DeFi protocol to secure a Sui Foundation grant, Scallop fosters innovation within the Sui ecosystem.

Real-World Collaborations

Scallop has recently entered several real-world partnerships, using its DeFi infrastructure to generate tangible effects. These collaborations were noted from @scallop_io’s X posts and other sources:

• RNS Palau ID Partnership (May 2025): Scallop joined forces with RNS.global, the initial sovereign-backed blockchain-native digital identity platform, to give Scallop users entry to Palau’s Digital Residency Program. This enables SCA holders to acquire a legally recognized on-chain identity, offering perks such as extended stays in Palau (up to 180 days). Prominent individuals like Vitalik Buterin and Tim Draper also possess Palau IDs, underscoring the program’s prestige. This alliance links DeFi with real-world identity solutions, improving user trust and global access.
• GiveRep Loyalty Campaign (May 2025): Scallop worked with GiveRep, a service for community-led loyalty programs, to start a campaign where users can earn SCA rewards by producing X content regarding Scallop. This effort encourages real-world interaction by rewarding community involvement and raising Scallop’s profile.
• Sui Basecamp Exhibition Merchandise (May 2025): Scallop took part in Sui Basecamp 2025 in Dubai (May 1-2), handing out branded items to engage the Sui community. This physical event boosted community interaction and displayed Scallop’s offerings, solidifying its role in the Sui ecosystem.

These partnerships illustrate Scallop’s dedication to merging DeFi with real-world uses, ranging from digital identity systems to community involvement and industry networking.

Scallop (SCA) is a leading decentralized finance (DeFi) protocol within the Sui ecosystem, noted for its institutional-grade security, strong composability, and robust architecture. It holds the distinction of being the first DeFi protocol to secure an official grant from the Sui Foundation, a milestone that underscored its innovative strategy and helped fund its initial development and integration into the ecosystem.

Key developments include:

• Sui Foundation Grant: As the inaugural DeFi recipient of this grant, Scallop demonstrated its commitment to advancing DeFi on Sui, using the funds to support early growth and ecosystem connectivity.
• $3 Million Funding Round (March 2024): The protocol completed a strategic financing round raising $3 million. Led by CMS Holdings and 6th Man Ventures, with additional backing from KuCoin Labs, Blockchain Founders Fund, and others, this capital boost strengthened its market position and development capabilities.
• Token Generation Event (TGE, March 2024): The SCA token launched with a total supply of 250 million. The distribution model allocated 45% to liquidity mining, 15% to contributors, and 7.5% to community and marketing initiatives, laying the groundwork for its tokenomics.

Binance-Related Milestones:

• Binance Alpha Listing (May 13, 2025): SCA became the first project from the Sui ecosystem to be listed on Binance Alpha. This event highlighted market confidence in Scallop’s fundamentals, involving the locking of 40 million SCA tokens and the execution of nine loyalty programs.
• Binance Wallet Integration: Users gained the ability to access Scallop’s lending and borrowing services directly via the Binance Web3 wallet. A promotional campaign accompanied this integration, offering participants rewards, with a minimum payout of 36.34 SCA for some users.

Performance and Revenue (2025):

• Scallop’s total value locked (TVL) hit $130.27 million, reflecting a 34% weekly increase, and reached a peak of $156 million.
• The protocol generated $79,920 in revenue over a 24-hour period, placing it second among DeFi lending platforms.
• Upon crossing $5 million in cumulative revenue, Scallop launched a loyalty initiative, distributing $200,000 worth of sSCA to veSCA holders and $250,000 worth of sSCA to loyal supporters.

Partnerships and Integrations (2024–2025):

• Collaborations were formed with Aftermath Finance, Haedal Protocol, FlowX Finance, Typus Finance, KriyaDEX, Binance Wallet, and Sui Name Service (SuiNS).
• As part of these efforts, 25,000 SCA were distributed to holders of 3-digit SuiNS domains.
• The Walrus token was also listed on the platform, broadening its ecosystem offerings.

Community Engagement:

• Sui Basecamp 2025 (May 1–2, 2025): The team attended the event in Dubai, handing out branded merchandise to foster community interaction and increase visibility.
• Loyalty and Incentive Programs (2024–2025):
• To celebrate exceeding $5 million in total revenue, rewards totaling $200,000 in sSCA were given to veSCA holders and $250,000 in sSCA to loyal supporters, determined by daily snapshots of veSCA holdings.
• The GiveRep Loyalty Campaign in May 2025 incentivized users to create X content about Scallop, rewarding them with SCA to boost real-world engagement.
• Weekly incentives refreshed regularly, introducing assets such as sHAEDAL and offering up to 75,000 sSUI, 343,000 sSCA, and 100,000 sHAEDAL. veSCA holdings could boost these rewards by up to 4x.

Exchange Listings (2024–2025):

• SCA was listed on multiple platforms including Coinstore, CoinW, BTSE, Gate.io, LBank, and HTX. Notably, the SCA/USDT pair on Gate.io recorded a 24-hour trading volume of $964,056.89, improving liquidity and access.

Scallop maintains its security through audits conducted by OtterSec, MoveBit, and Cetus, complemented by a bug bounty program to ensure reliability. Its open-source structure, community-focused initiatives, and strategic alliances, particularly with Binance, have established it as a central component of the Sui ecosystem, promoting DeFi innovation and user adoption.

Scallop was co-founded by Kris Lai and Donnie Chen.

Kris Lai is a security researcher who entered the crypto space in 2017. He began developing DeFi applications on Solana in 2021 and started building on Sui in 2022.

Donnie Chen brings more than 10+ years of web2 development experience, covering apps, websites, and games. He has been active in the crypto industry since 2021, primarily within the Solana ecosystem, and continues to contribute as a full-stack and smart contract developer on the Sui blockchain.