Scallop is a user-friendly lending protocol hosted on the Sui blockchain that drives DeFi adoption.

Sui Network’s ability to support large transaction volumes while maintaining low fees has attracted many developers and users. It is now home to one of the fastest-growing DeFi apps.

Scallop, a decentralized finance (DeFi) lending protocol built on top of Sui, is leveraging the power of the network to create a user-friendly platform for borrowing and lending digital assets.

As blockchain networks become more popular and used, the demand for transaction throughput and efficient resource allocation is increasing. Currently, most blockchains struggle to handle increasing transaction volumes without compromising performance, which can lead to higher transaction fees, slower transaction speeds, and scalability bottlenecks.

Addressing these scalability issues is critical for blockchain to reach its potential as a mainstream technology. In that respect, a scalable blockchain can support many applications, attract more users, and foster widespread adoption across various sectors. One of them is Sui Network, a layer 1 blockchain working to simplify Web3 onboarding and address scalability limitations.

Sui Increases DeFi Presence

Launched in May 2023, Sui implements a unique architecture to achieve high scalability and leverages horizontal scaling to ensure transaction fees remain low even during periods of high demand. The network can process many transactions simultaneously, achieving instant finality and security.

Reflecting the efficiency of Sui, one of the fastest-growing DeFi apps is Scallop, a lending protocol that has expanded into the main money market on the Sui network.

The protocol includes tools for developing Sui programmable transaction blocks (PTxs), the Sui Kit for interacting with Sui while using the TypeScript SDK, the Scallop SDK for interacting with Scallop, and Scallop Market Coins (sCoins). It offers a wide range of products for different levels of functionality. For zero cost flash loans.

Scallop is the first DeFi project awarded through a grant by the Sui Foundation. We also won various awards at the Sui Builder House hackathon. Additionally, the protocol has secured funding from leading institutions and venture capital (VC) firms such as OtterSec and Comma 3 Ventures.

Users can utilize Scallop’s bridging solutions consisting of Portal Bridge, Wormhole Connect, and Celer Bridge to transfer digital assets to the Sui network. Scallop also offers low transaction fees, making it an attractive option for users looking to save money on decentralized finance (DeFi) transactions.

In 2022, the Scallop team embarked on a quest to find the perfect blockchain foundation for its lending protocol. Through their search, they found the Sui blockchain, which has excellent security and composability. Unlike other blockchains, Sui’s infrastructure allows Scallop to be seamlessly integrated into existing DeFi applications, allowing developers to create innovative and interconnected DeFi experiences.

In that regard, Sui’s Move smart contract development language, built on top of the large-scale Rust programming language, has also solidified its appeal as it addresses critical security issues inherent to DeFi smart contracts.

Scallop allows users to borrow and lend major stablecoins such as USDT, USDC, CETUS, and SUI. CETUS is the naive token of Cetus, a Sui-based decentralized exchange (DEX). Through a temporary incentive program primarily funded by Sui Foundation, Mysten Labs, and Openblock Labs, Scallop rewards borrowers and borrowers who receive SUI tokens for participating in the ecosystem.

Scallop especially values ​​its users and plans to recognize Scallop’s early users and supporters through the Scallop token SCA, scheduled to launch in Q1 2024.

Related: MUFEX revolutionizes DeFi with CEX-like trading experience and lightning-fast order processing.

Increased adoption

Scallop experienced significant growth in the fourth quarter of 2023. As of December 6, its total locked value (TVL) exceeded $40 million, making it the second-largest DeFi app on the SUI chain after Cetus. This growth is a significant increase from September, when Scallop’s TVL was less than $4 million.

The upward trend reflects the growing adoption of Scallop’s lending pools, which offer users the opportunity to earn interest on their cryptocurrency holdings or borrow their assets for a variety of purposes. The protocol’s primary focus on accessibility, security, and a user-friendly interface may help its appeal among SUI users.

Scallop now plans to set the standard for all lending DeFi platforms on all chains, with a focus on user security and experience. A team of fintech, DeFi, cybersecurity, and quantitative trading experts worked to build a broad currency marketplace that leverages Sui’s composability and security, implements risk management, and provides ongoing user support.